The Casino Environment

Before the latest economic downturn, commercial casinos collected at the very least $30 billion within revenues each year through 2005 through 2008. 1 During this time period, US ALL casino owners built new facilities in addition to expanded the dimensions of their existing facilities. As a result regarding the economic depression, new US commercial casino construction is at a the screeching halt in addition to casino operators are usually now focused upon existing facility expense reduction.

The Section 179(D) Tax Procedures

Increasingly, casino operators take advantage regarding the EPAct IRC section 179(D) commercial building energy performance tax provisions, which often have been expanded through 2013. EPAct tax deductions usually are available for being approved energy reductions inside lighting, HVAC(heating, air flow, and air conditioning), and building envelope. Joker123 (Building envelope contains the building’s basis, walls, roof, house windows, and doors, all of which control the circulation of energy in between the interior and exterior of the building. )

The Nature associated with Casino Qualities

Business casinos often cover hotel resorts, which usually offer attractive packages of services for his or her corporate and family members customers. Casinos are very suited to EPAct because of their large gaming floors, hotel guests rooms, meeting admission, and parking abri. All these features generally consumes large rectangular footage plus the EPAct benefit includes a prospective for up to 60 cents each square foot for each of the three measures described above. Some of typically the smallest commercial casinos are about fifty, 000 square ft while most American casinos are generally over 100, 1000 square feet. One associated with the largest types, MGM Grand within the Las Vegas remove is almost 2 mil square feet. Hotels themselves are probably the most preferred of Section 179 building category. (See “Hotels and Motels Most Favored Energy Policy Act Tax Properties”)

Pretty in order to think of commercial casinos as located in two declares Nevada and New Jersey. While this is valid that these kinds of two states possess the largest business casino revenues, you can find 12 states along with commercial casinos in the United States, the other business casino states usually are: Colorado, Illinois, Indiana, Iowa, Louisiana, The state of michigan, Mississippi, Missouri, Philadelphia, and South Dakota. Members of the particular American Gaming Organization have publicized several of their responsibilities to energy reduction. Reporting casinos contain Boyd Gaming Corporation, Harrah’s Entertainment, Incorporation., and MGM Mirage. They may have projects which usually include significant energy savings via cogeneration, ERV(energy recovery ventilation), more efficient HEATING AND COOLING units, replacing amoureux lights with energy efficient lightings, windows together with energy efficient time lighting systems, photo voltaic thermal storage and numerous other energy saving initiatives.

The underlying rule set to be able to qualify for typically the Section 179D illumination tax deduction makes casinos and especially casino hotels probably the most favored property class for the duty incentive. The guideline set requires from least a 25% watts-per-square foot reduction as compared to be able to the 2001 ASHRAE (American Society of Heating Refrigeration plus Ac Engineers) building energy code common. Full tax deductions is achieved with a 40% watts-per-square foot reduction in contrast to the ASHRAE 2001 standard. Typically the ASHRAE 2004 hotel/motel building code standard requires 40% wattage reduction, which implies that any resort or motel lights installation that fulfills that building program code requirement will instantly qualify for the particular maximum EPAct tax deduction.

Occupancy Bedrooms

For most some other building categories, the Section 179D taxes provisions require complying with the bi-level switching requirement. Typically the comparison is always based on ” cable ” rather than plug lighting. Casino motel occupancy rooms have got a major benefit in that they frequently use plug-in lights, and because these kinds of rooms function because hotel and lodge spaces, these are specifically excluded through the tax bi-level switching requirement. Since occupant areas are usually one of the larger spaces in hotel casinos, casinos are typically able to use energy efficient lighting to generate large EPAct duty deductions for typically the facility.

Back associated with the House Places

Casinos often have got large kitchen, safe-keeping, and laundry (so called back associated with the house) areas that have traditionally used T-12 neon lighting. This illumination is so power inefficient compared to be able to today’s lighting products of which it will be illegal to make in the usa after July 1, 2010. four Once manufacturing associated with these prior era lighting products stops, the cost of replacing these inefficient bulbs increases. Basically stated, casinos must look into acting now in order to replace these lighting fixtures in order to save both energy and lamp replacement costs. The particular EPAct lighting taxes incentive may be used to tackle the opportunities associated to these legally mandated product adjustments

Ball Rooms, Fête Rooms and Eating places

These areas associated with casinos have historically used designer kind lighting that is energy inefficient plus often very expensive to keep and substitute. In particular, replacing bulbs and lamps inside high ceilings will be very costly considering that expensive mobile hydraulic platform equipment need to be rented or purchased to handle the replacements. Fresh lighting products and, in particular, light giving out diode (LED) products, use a cheaper energy and have got a far longer useful life and usually are now being replaced. The mix of large energy cost lowering, operating cost cutbacks, utility rebates plus EPAct tax deductions can greatly enhance the economic repayment from these more costly lighting improvements.

Parking Abri

Many casinos have large adjoining parking garages that can help save substantial energy expenses and generate large tax deductions by upgrading to energy-efficient fixtures. In Discover 2008-40 issued March 7th, 2008, the particular IRS announced that parking garages are usually a property class that is especially entitled to employ the EPAct tax deductions. Also, car parking garages are omitted from the tax bi-level switching need. Please see typically the September, 2008 Worldwide Parking Institute content dedicated to parking abri EPAct lighting deductions tax opportunities. a few

Slots and Gambling Floors

One regarding the biggest vitality users on hotel gaming floors will be slot machines. Although these kinds of were early connectors of fluorescent technologies, even these vitality efficient bulbs normally have to be transformed three times a yr because of daily operating hours. Because of the high labor upkeep costs, casino owners are now transitioning to LED technological innovation inside their slot devices. LED’s, while they will have higher beforehand costs, have high energy efficiency and a lot longer life cycle, offering significant savings in labor and maintenance costs.


Casinos for their common 24 hour occupancy can achieve significant energy cost cost savings from energy efficient HEATING AND COOLING systems. Specifically, Nevada’s hot climate additional makes cost effective HVAC a very worthwhile investment. Fortunately. Nevada with the maximum revenues from internet casinos has America’s second highest capacity for energy efficiency by means of renewable geothermal power. 6 Certain classes of very efficient HVAC investments will frequently qualify for the HVAC EPAct tax incentive including geothermal and thermal storage space.

LEED Casinos

All of us anticipate to see even more casinos obtain LEED status. (See LEED Building Tax Options Article7). In 08, The Palazzo, Todas las Vegas Casino started to be the largest LEED certified building and one of the first certified LEED casinos in the usa. 8 Internet casinos and hotels discover that certain categories of frequent tourists are very interested in remaining in amenities that have clearly demonstrated they usually are centered on the environment and sustainable design. To become LEED certified, a online casino must have the building energy simulation model created simply by a qualified engineer. Modeling is furthermore required for the EPAct, HVAC and Constructing Envelope tax reductions. Qualified tax experts that know just how to make the particular adjustments to transform LEED computer models to EPAct taxes deduction models may evaluate LEED models and determine whether big tax deductions are usually probable. For example , the 500, 000 square foot LEED casino that qualifies for the maximum EPAct tax deduction will receive an immediate taxes deduction of $900, 000 =(500, 000*$1. 80). Casino masters who understand the particular magnitude of those benefits can use typically the tax savings to aid justify the costs related to achieving LEED status.

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