The Casino Environment
Before the recent economic downturn, commercial casinos collected a minimum of $30 billion in revenues annually from 2005 through 2008.1 During this era , US casino owners built new facilities and expanded the dimensions of their existing facilities. As a results of the economic downturn, new US commercial casino construction has come to a screeching halt and casino operators are now focused on existing facility cost reduction.
The Section 179(D) Tax Provisions
Increasingly, casino operators are taking advantage of the EPAct IRC section 179(D) commercial building energy efficiency tax provisions, which are extended through 2013. EPAct tax deductions are available for qualifying energy reductions in lighting, HVAC(heating, ventilation, 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 inside and exterior of the building.)
The Nature of Casino Properties
Commercial casinos often encompass hotel resorts, which supply attractive packages of services for his or her corporate and family customers. Casinos are particularly suited to EPAct due to their large gaming floors, occupancy rate rooms, meeting halls, and parking garages. Each of those features typically consumes large sq ft age and therefore the EPAct benefit features a potential for up to 60 cents per square foot for every of the three measures described above. a number of the littlest commercial casinos are about 50,000 square feet while most American casinos are typically over 100,000 square feet. one among the most important ones, MGM Grand on the Las Vegas strip is nearly 2 million square feet. Hotels themselves are the foremost favored of Section 179 building category. (See “Hotels and Motels Most Favored Energy Policy Act Tax Properties”)
It is common to consider commercial casinos as located in two states Nevada and New Jersey. While it’s true that these two states have the most important commercial casino revenues, there are 12 states with commercial casinos within the us , the opposite commercial casino states are: Colorado, Illinois, Indiana, Iowa, Louisiana, Michigan, Mississippi, Missouri, Pennsylvania, and South Dakota . Members of the American Gaming Association have publicized a number of their commitments to energy reduction. Reporting casinos include Boyd Gaming Corporation, Harrah’s Entertainment, Inc., and MGM Mirage. they need projects which include significant energy savings via cogeneration, ERV(energy recovery ventilation), more efficient HVAC units, replacing incandescent lights with energy efficient lightings, windows with energy efficient day lighting systems, solar thermal storage and various other energy saving initiatives.
The underlying rule set to qualify for the Section 179D lighting tax write-off makes casinos and particularly casino hotels the foremost favored property category for the tax incentive. The rule set requires a minimum of 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 write-off is achieved with a 40% watts-per-square foot reduction compared to the ASHRAE 2001 standard. The ASHRAE 2004 hotel/motel code standard requires 40% wattage reduction, which suggests that any hotel or motel lighting installation that meets that pgslot code requirement will automatically qualify for the utmost EPAct tax write-off .
For most other building categories, the Section 179D tax provisions require compliance with the bi-level switching requirement. The comparison is usually supported wired instead of plug-in lighting. Casino occupancy rate rooms have a serious advantage therein they often use plug-in lighting, and since these rooms function as hotel and motel spaces, they’re specifically excluded from the tax bi-level switching requirement. Since occupant rooms are usually one among the larger spaces in hotel casinos, casinos are typically ready to use energy efficient lighting to get large EPAct tax deductions for the power .