Commercial Casinos Energy Policy Act Tax Opportunity

Before the recent economic downturn, commercial casinos collected at least $30 billion in revenues each year from 2005 through 08. 1 During this period, US casino owners built new facilities and expanded the size of their existing facilities. As a result situs slot online of the economic downturn, new US commercial casino construction has come to a screeching cease and casino operators are now focused on existing facility cost reduction.

The Section 179(D) Tax Terms

Increasingly, casino operators are taking advantage of the EPAct IRC section 179(D) commercial building energy efficiency tax terms, which have been extended through 2013. EPAct tax rebates are available for getting qualified energy discount rates in lighting, HVAC(heating, setting up, and air conditioning), and building envelope. (Building envelope consists of the building’s foundation, walls, roof, windows, and doors, all of which control the flow of energy between the interior and exterior of the building. )

The character of Casino Properties

Commercial casinos often include things like hotel resorts, which provide attractive packages of services for their corporate and family customers. Casinos are particularly fitted to EPAct for their large gaming floors, hotel occupancy rooms, meeting halls, and parking garages. Each of these features typically consumes large rectangle pictures and the EPAct benefit has a potential for an estimated 60 cents per rectangle foot for each of the three measures described above. Some of the smallest commercial casinos are about 50, 000 rectangle feet while most American casinos are typically over 100, 000 rectangle feet. One of the largest ones, MGM Grand on the Las vegas strip is sort of 2 million rectangle feet. Hotels themselves are the most favored of Section 179 building category. (See “Hotels and Motels Most Favored Energy Policy Act Tax Properties”)

It’s quite to consider commercial casinos as located in two states Nevada and Nj. While it applies that these two states have the largest commercial casino revenues, there are 12 states with commercial casinos in the united states, the other commercial casino states are: Colorado, The state of illinois, Indiana, Iowa, Louisiana, The state of michigan, Mississippi, Missouri, Pennsylvania, and South Dakota. Members of the American Gaming Association have publicized some of their commitments to energy reduction. Coverage casinos include Boyd Gaming Corporation, Harrah’s Entertainment, Inc., and MGM Mirage. They have projects together with significant energy savings via cogeneration, ERV(energy recovery ventilation), more streamlined HVAC units, replacing incandescent lights with energy efficient lightings, windows with energy efficient day lighting systems, solar arctic storage and numerous other energy saving initiatives.

The underlying rule set to qualify for the Section 179D lighting tax deduction makes casinos and particularly casino hotels the most favored property category for the tax prize. The rule set requires at least a 25% watts-per-square foot reduction as compared to the 2001 ASHRAE (American Society of Heating Refrigeration and Air con Engineers) building energy code standard. Full tax deduction is achieved with a 40% watts-per-square foot reduction in comparison to the ASHRAE 2001 standard. The ASHRAE 2004 hotel/motel building code standard requires 40% wattage reduction, which means that any hotel or motel lighting installation that meets that building code requirement will automatically qualify for the ideal EPAct tax deduction.

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