The Casino Atmosphere

Before the current downturn in the economy, commercial casinos collected at minimum $30 billion within revenues every year from 2005 through 08. 1 During this time period, ALL OF US casino owners built new facilities and expanded the dimensions of their existing facilities. Since a result associated with the economic depression, new US commercial casino construction has come to the screeching halt and casino operators are usually now focused about existing facility price reduction.

The Section 179(D) Tax Conditions

Increasingly, casino providers take advantage of the EPAct IRC section 179(D) commercial building energy efficiency tax provisions, which often have been expanded through 2013. EPAct tax deductions are usually available for being approved energy reductions within lighting, HVAC(heating, venting, and air conditioning), and building envelope. Joker123 (Building envelope contains the building’s foundation, walls, roof, windows, and doors, all of these control the movement of energy between the exterior and interior associated with the building. )

The Nature associated with Casino Properties

Commercial casinos often include hotel resorts, which offer attractive packages of services for their corporate and family customers. Casinos are extremely suited to EPAct because of their large gaming floors, hotel occupancy rooms, meeting admission, and parking abri. All these features generally consumes large rectangular footage as well as the EPAct benefit includes a prospective for up to be able to 60 cents per square foot with regard to each of the about three measures described over. Some of typically the smallest commercial casinos are about 55, 000 square ft while most Us casinos are generally over 100, 1000 sq ft. One of the largest kinds, MGM Grand around the Las Vegas remove is nearly 2 million square feet. Hotels by themselves are the most popular of Section 179 building category. (See “Hotels and Hotels Most Favored Vitality Policy Act Taxes Properties”)

Pretty to think of business casinos as situated in two says Nevada and Fresh Jersey. While that is true that these two states possess the largest commercial casino revenues, you can find 12 states along with commercial casinos in america, the other industrial casino states usually are: Colorado, Illinois, Indianapolis, Iowa, Louisiana, The state of michigan, Mississippi, Missouri, Pa, and South Dakota. Members of the particular American Gaming Relationship have publicized some of their obligations to energy reduction. Reporting casinos consist of Boyd Gaming Company, Harrah’s Entertainment, Inc., and MGM Apparence. They may have projects which include significant vitality savings via cogeneration, ERV(energy recovery ventilation), more efficient HVAC units, replacing amoureux lights with energy efficient lightings, windows along with energy efficient time lighting systems, sun thermal storage plus numerous other economical initiatives.

The root rule set in order to qualify for the particular Section 179D illumination tax deduction makes casinos and especially casino hotels one of the most favored property category for the tax incentive. The rule set requires at least a 25% watts-per-square foot reduction as compared to be able to the 2001 ASHRAE (American Society associated with Heating Refrigeration in addition to Ac Engineers) creating energy code standard. Full tax deductions is achieved along with a 40% watts-per-square foot reduction in contrast to the ASHRAE 2001 standard. The particular ASHRAE 2004 hotel/motel building code common requires 40% power consumption reduction, which implies that any hotel or motel illumination installation that satisfies that building code requirement will immediately qualify for the maximum EPAct tax deduction.

Occupancy Bedrooms

For most additional building categories, the particular Section 179D tax provisions require compliance with the bi-level switching requirement. Typically the comparison is usually based on born rather than plug-in lighting. Casino motel occupancy rooms have a major benefit in that they often use plug-in illumination, and because these rooms function as hotel and lodge spaces, they may be especially excluded through the tax bi-level switching requirement. Since occupant rooms are usually one of many larger spaces within hotel casinos, casinos are typically capable to use vitality efficient lighting to generate large EPAct duty deductions for the facility.

Back of the House Areas

Casinos often possess large kitchen, storage space, and laundry (so called back of the house) areas that have traditionally used T-12 neon lighting. This lighting is so power inefficient compared in order to today’s lighting products of which it will become illegal to make in the United States after Come july 1st 1, 2010. four Once manufacturing associated with these prior era lighting products stops, the cost of replacing these bad bulbs will increase. Just stated, casinos should consider acting now in order to replace these illumination fixtures to save each energy and lamp replacement costs. Typically the EPAct lighting duty incentive may be used to tackle the opportunities connected to these legitimately mandated product modifications

Ball Rooms, Banquet Rooms and Dining places

These areas regarding casinos have traditionally used designer type lighting that is usually energy inefficient in addition to often very costly to keep up and change. In particular, replacing bulbs and lamps inside high ceilings is usually very costly considering that expensive mobile hydraulic platform equipment must be rented or purchased to deal with the replacements. New lighting products and, in particular, light emitting diode (LED) goods, use a cheaper energy and possess a much longer helpful life and usually are now being substituted. The mixture of large energy cost reduction, operating cost cutbacks, utility rebates and EPAct tax rebates can greatly increase the economic repayment from these more costly lighting improvements.

Parking Abri

Numerous casinos have big adjoining parking abri that can save substantial energy costs and generate huge tax deductions simply by upgrading to cost effective fixtures. In Observe 2008-40 issued March 7th, 2008, typically the IRS announced that parking garages are a property school that is specifically entitled to use the EPAct taxes deductions. Also, auto parking garages are omitted from the tax bi-level switching need. Please see typically the September, 2008 Worldwide Parking Institute article devoted to parking réduit EPAct lighting deductions tax opportunities. five

Slot Machines and Gambling Flooring

One associated with the biggest vitality users on hotel gaming floors is usually slots. Although these types of were early adapters of fluorescent technologies, even these power efficient bulbs ordinarily have to be altered 3 times a year because of day to day operating hours. Due to the high labor upkeep costs, casino proprietors are now transitioning to LED technologies in their slot equipment. LED’s, while they have higher up front costs, have cardio efficiency and very much longer life routine, offering significant savings in labor plus maintenance costs.


Casinos for their common 24 hour occupancy can achieve significant energy cost savings from cost effective HVAC systems. In particular, Nevada’s hot climate additional makes cost effective HVAC a very advantageous investment. Fortunately. Nevada with the greatest revenues from internet casinos has America’s second highest capacity regarding energy efficiency via renewable geothermal power. 6 Certain classes of very successful HVAC investments will often qualify for the particular HVAC EPAct taxes incentive including geothermal and thermal safe-keeping.

LEED Casinos

We expect to see a lot more casinos obtain LEED status. (See LEED Building Tax Opportunities Article7). In 2008, The Palazzo, Las Vegas Casino grew to become the largest LEED certified building and another of the very first certified LEED internet casinos in the US. 8 Internet casinos and hotels find that certain groups of frequent travelers are very serious in remaining in amenities that have obviously demonstrated they are usually centered on the environment and sustainable style. To become LEED certified, a on line casino must have a building energy ruse model created by a qualified engineer. Modeling is likewise required for the EPAct, HVAC and Constructing Envelope tax deductions. Qualified tax professionals that know just how to make the particular adjustments to convert LEED computer versions to EPAct taxes deduction models may evaluate LEED versions and evaluate if large tax deductions are probable. For instance , a 500, 000 sq . foot LEED casino that qualifies regarding the maximum EPAct tax deduction will receive an immediate tax deduction of $900, 000 =(500, 000*$1. 80). Casino proprietors who understand the magnitude of such rewards can use the particular tax savings to help justify the expenses associated with achieving LEED status.