New York City officials have adopted rules to implement a tax incentive to encourage energy-efficient building upgrades and other kinds of renovations, responding to earlier concerns raised by realtors.

The city Department of Housing Preservation and Development said it received 43 comments on its proposed rules for the J-51 tax break. The department made changes in the final version for property owners looking to take advantage of the incentive, addressing concerns raised in a March hearing over costs and other issues.

The final rules adopted this week lower the penalty for failing to timely file a notice of intent of ...