The Casino Atmosphere

Before the latest downturn in the economy, commercial internet casinos collected at the very least $30 billion within revenues annually from 2005 through 08. 1 During this time period, ALL OF US casino owners constructed new facilities and expanded the size of their particular existing facilities. As a result regarding the economic downturn, fresh US commercial online casino construction is at a the screeching halt plus casino operators are usually now focused upon existing facility cost reduction.

The Area 179(D) Tax Provisions

Increasingly, casino operators are taking advantage associated with the EPAct IRC section 179(D) industrial building energy efficiency tax provisions, which often have been extended through 2013. EPAct tax deductions are available for being approved energy reductions inside lighting, HVAC(heating, venting, and air conditioning), and building package. Joker123 (Building envelope contains the building’s basis, walls, roof, home windows, and doors, all of these control the circulation of energy between the interior and exterior of the building. )

The Nature associated with Casino Properties

Business casinos often include hotel resorts, which usually offer attractive plans of services for their corporate and family members customers. Casinos are very suited to EPAct for their large gaming floors, hotel guests rooms, meeting halls, and parking abri. Each of these features usually consumes large square footage plus the EPAct benefit contains a potential for up in order to 60 cents for each square foot for each from the about three measures described previously mentioned. Some of the smallest commercial casinos are about 50, 000 square ft while most United states casinos are typically over 100, 1000 square feet. One regarding the largest types, MGM Grand on the Las Vegas deprive is almost 2 million square feet. Hotels themselves are probably the most preferred of Section 179 building category. (See “Hotels and Motels Most Favored Vitality Policy Act Duty Properties”)

It is common to think of industrial casinos as situated in two states Nevada and Brand new Jersey. While this is true that these types of two states possess the largest commercial casino revenues, you can find 12 states with commercial casinos in the United States, the other business casino states are: Colorado, Illinois, Indiana, Iowa, Louisiana, Michigan, Mississippi, Missouri, Pa, and South Dakota. Members of the American Gaming Relationship have publicized a few of their obligations to energy decrease. Reporting casinos include Boyd Gaming Corporation, Harrah’s Entertainment, Inc., and MGM Apparence. They have projects which include significant energy savings via cogeneration, ERV(energy recovery ventilation), more efficient HEATING AND COOLING units, replacing incandescent lights with energy efficient lightings, windows together with energy efficient day time lighting systems, photo voltaic thermal storage plus numerous other economical initiatives.

The root rule set to qualify for the Section 179D lights tax deduction tends to make casinos and particularly casino hotels one of the most favored property class for the tax incentive. The guideline set requires at least a 25% watts-per-square foot decrease as compared in order to the 2001 ASHRAE (American Society associated with Heating Refrigeration plus Air Conditioning Engineers) building energy code standard. Full tax discount is achieved together with a 40% watts-per-square foot reduction in comparison to the ASHRAE 2001 standard. The ASHRAE 2004 hotel/motel building code common requires 40% power consumption reduction, which means that any resort or motel lighting installation that satisfies that building code requirement will instantly qualify for the particular maximum EPAct tax deduction.

Occupancy Areas

For most some other building categories, typically the Section 179D duty provisions require compliance with the bi-level switching requirement. The comparison is always based on wired rather than plug-in lighting. Casino motel occupancy rooms have got a major advantage in that they generally use plug-in lights, and because these types of rooms function since hotel and motel spaces, these are particularly excluded through the taxes bi-level switching need. Since occupant bedrooms are usually one of the larger spaces inside hotel casinos, internet casinos are typically able to use energy efficient lighting to generate large EPAct duty deductions for the particular facility.

Back of the House Areas

Casinos often have got large kitchen, storage space, and laundry (so called back of the house) spaces that have traditionally used T-12 fluorescent lighting. This lighting is so energy inefficient compared to today’s lighting products that will it will end up being illegal to produce in the United States after Come july 1st 1, 2010. 4 Once manufacturing regarding these prior technology lighting products stops, the cost associated with replacing these ineffective bulbs raises. Just stated, casinos must look into acting now to be able to replace these lights fixtures in order to save both energy and lamp replacement costs. The particular EPAct lighting duty incentive can be used to tackle the opportunities connected to these legally mandated product changes

Ball Rooms, Fête Rooms and Eating places

These areas regarding casinos have historically used designer sort lighting that is usually energy inefficient and often very expensive to keep and change. Specifically, replacing light bulbs and lamps inside high ceilings is usually very costly since expensive mobile hydraulic platform equipment must be rented or even purchased to deal with the replacements. Fresh lights and, in particular, light emitting diode (LED) products, use a cheaper energy and have a far longer beneficial life and are now being replaced. The mix of large energy cost lowering, operating cost savings, utility rebates in addition to EPAct tax reductions can greatly enhance the economic payback from these more costly lighting upgrades.

Parking Garages

Numerous casinos have big adjoining parking abri that can conserve substantial energy charges and generate large tax deductions simply by upgrading to cost effective fixtures. In Observe 2008-40 issued March 7th, 2008, the particular IRS announced of which parking garages are usually a property class that is especially entitled to use the EPAct tax deductions. Also, car parking garages are omitted from the tax bi-level switching requirement. Please see the particular September, 2008 International Parking Institute content devoted to parking réduit EPAct lighting deductions tax opportunities. 5

Slot Machines and Video gaming Flooring

One of the biggest power users on motel gaming floors is slots. Although these types of were early connectors of fluorescent technologies, even these energy efficient bulbs ordinarily have to be changed three times a 12 months because of daily operating hours. Because of the high labor servicing costs, casino owners are now moving to LED technology in their slot equipment. LED’s, while these people have higher beforehand costs, have cardio efficiency and much longer life period, offering significant savings in labor plus maintenance costs.


Casinos for their common 24 hour guests can achieve significant energy cost savings from energy-efficient HVAC systems. In particular, Nevada’s hot climate further makes energy-efficient HVAC a very advantageous investment. Fortunately. Nevada with the maximum revenues from internet casinos has America’s 2nd highest capacity regarding energy efficiency via renewable geothermal energy. 6 Certain categories of very successful HVAC investments will most likely qualify for the particular HVAC EPAct duty incentive including geothermal and thermal safe-keeping.

LEED Casinos

All of us be prepared to see a lot more casinos obtain LEED status. (See LEED Building Tax Possibilities Article7). In 2008, The Palazzo, Todas las Vegas Casino started to be the largest LEED certified building and something of the first certified LEED casinos in the usa. 8 Casinos and hotels find that certain classes of frequent vacationers are very serious in remaining in facilities that have obviously demonstrated they are usually centered on the surroundings and sustainable style. To become LEED certified, a casino must have the building energy ruse model created by a qualified industrial engineer. Modeling is furthermore required for the EPAct, HVAC and Building Envelope tax deductions. Qualified tax specialists that know how to make typically the adjustments to change LEED computer designs to EPAct duty deduction models can evaluate LEED models and evaluate if large tax deductions are usually probable. For example , a 500, 000 sq . foot LEED casino that qualifies with regard to the maximum EPAct tax deduction are getting an immediate duty deduction of $900, 000 =(500, 000*$1. 80). Casino owners who understand the magnitude of those rewards can use the tax savings to help justify the expenses related to achieving LEED status.