The Casino Setting

Prior to the current financial downturn, professional casinos gathered at least $30 billion in revenues every year from 2005 by means of Throughout this time period, US casino house owners created new services and expanded the dimensions of their present services. As a result of the financial downturn, new US industrial casino design has come to a screeching halt and casino operators are now targeted on present facility price reduction.

The Section 179(D) Tax Provisions

More and more, casino operators are taking benefit of the EPAct IRC part 179(D) industrial building strength performance tax provisions, which have been extended via 2013. EPAct tax deductions are available for qualifying power reductions in lights, HVAC(heating, ventilation, and air conditioning), and constructing envelope. (Building envelope is made up of the building’s basis, partitions, roof, home windows, and doorways, all of which manage the flow of vitality in between the interior and exterior of the creating.)

The Nature of Casino Houses

Professional casinos typically encompass resort resorts, which offer attractive packages of providers for their corporate and loved ones customers. Casinos are specifically suited to EPAct due to the fact of their large gaming flooring, lodge occupancy rooms, assembly halls, and parking garages. Each of these functions typically consumes huge square footage and the EPAct benefit has a possible for up to sixty cents for every sq. foot for each of the 3 measures described previously mentioned. Some of the smallest professional casinos are about 50,000 square ft whilst most American casinos are usually above 100,000 sq. toes. A single of the biggest ones, MGM Grand on the Las Vegas strip is virtually 2 million square ft. Lodges them selves are the most favored of Area 179 creating group. (See “Hotels and Motels Most Favored Vitality Coverage Act Tax Homes”)

It is widespread to feel of commercial casinos as situated in two states Nevada and New Jersey. While it is true that these two states have the largest business on line casino revenues, there are 12 states with business casinos in the United States, the other commercial casino states are: Colorado, Illinois, Indiana, Iowa, Louisiana, Michigan, Mississippi, Missouri, Pennsylvania, and South Dakota. Associates of the American Gaming Association have publicized some of their commitments to energy reduction. Reporting casinos include Boyd Gaming Company, Harrah’s Enjoyment, Inc., and MGM Mirage. They have tasks which incorporate considerable energy financial savings by way of cogeneration, ERV(strength recovery air flow), far more successful HVAC units, replacing incandescent lights with strength productive lightings, windows with vitality efficient day lights programs, photo voltaic thermal storage and several other strength saving initiatives.

The fundamental rule set to qualify for the Part 179D lighting tax deduction makes casinos and notably on line casino accommodations the most favored house classification for the tax incentive. The rule established requires at minimum a 25% watts-for every-square foot reduction as in comparison to the 2001 ASHRAE (American Society of Heating Refrigeration and Air Conditioning Engineers) constructing strength code normal. Entire tax deduction is accomplished with a forty% watts-for each-square foot reduction in comparison to the ASHRAE 2001 normal. The ASHRAE 2004 resort/motel developing code standard demands forty% wattage reduction, which implies that any hotel or motel lighting set up that fulfills that building code necessity will immediately qualify for the maximum EPAct tax deduction.

Occupancy Rooms

For most other constructing types, the Part 179D tax provisions call for compliance with the bi-amount switching prerequisite. The comparison is usually primarily based on wired rather than plug-in lighting. On line casino hotel occupancy rooms have a main advantage in that they usually use plug-in lights, and due to the fact these rooms perform as lodge and motel areas, they are exclusively excluded from the tax bi-level switching need. Considering that occupant rooms are normally one particular of the more substantial spaces in lodge casinos, casinos are usually in a position to use power productive lighting to generate massive EPAct tax deductions for the facility.

Back again of the House Areas

Casinos usually have big kitchen area, storage, and laundry (so referred to as back of the residence) spaces that have traditionally employed T-twelve fluorescent lighting. casino online is so power inefficient compared to present day lights goods that it will be unlawful to manufacture in the United States right after July one, 2010.four When production of these prior generation lights merchandise ceases, the value of changing these inefficient bulbs will improve. Simply said, casinos need to think about acting now to exchange these lighting fixtures to save the two vitality and lamp substitution costs. The EPAct lights tax incentive can be employed to tackle the opportunities relevant to these legally mandated merchandise alterations

Ball Rooms, Banquet Rooms and Dining establishments

These locations of casinos have historically utilized designer kind lights that is energy inefficient and frequently quite expensive to maintain and exchange. In particular, replacing bulbs and lamps in high ceilings is quite expensive since expensive mobile hydraulic system gear must be rented or purchased to handle the replacements. New lighting goods and, in distinct, light emitting diode (LED) products, use a fraction of the energy and have a considerably more time useful life and are now getting substituted. The blend of huge vitality cost reduction, running expense reductions, utility rebates and EPAct tax deductions can significantly enhance the financial payback from these a lot more pricey lights upgrades.

Parking Garages

Several casinos have big adjoining parking garages that can preserve significant vitality fees and generate large tax deductions by upgrading to vitality effective fixtures. In Observe 2008-40 issued March seventh, 2008, the IRS declared that parking garages are a residence class that is specifically entitled to use the EPAct tax deductions. Also, parking garages are excluded from the tax bi-amount switching requirement. Make sure you see the September, 2008 Worldwide Parking Institute write-up devoted to parking garages EPAct lights deduction tax possibilities.five

Slot Devices and Gaming Flooring

1 of the greatest vitality users on hotel gaming floors is slot devices. Despite the fact that these ended up early adapters of fluorescent technology, even these power effective bulbs typically have to be modified three moments a 12 months since of 24/7 functioning hours. Due to the large labor maintenance expenses, on line casino house owners are now transitioning to LED technology in their slot devices. LED’s, even though they have increased up front expenses, have higher power performance and much more time daily life cycle, offering important cost savings in labor and servicing charges.


Casinos due to the fact of their standard 24 hour occupancy can attain considerable strength value savings from strength productive HVAC techniques. In particular, Nevada’s hot local weather additional tends to make strength productive HVAC a really worthwhile expense. Fortunately. Nevada with the maximum revenues from casinos has America’s second highest potential for vitality effectiveness by means of renewable geothermal vitality.six Particular categories of extremely productive HVAC investments will typically qualify for the HVAC EPAct tax incentive such as geothermal and thermal storage.

LEED Casinos

We count on to see much more casinos get LEED status. (See LEED Developing Tax Chances Article7). In 2008, The Palazzo, Las Vegas On line casino turned the largest LEED licensed constructing and 1 of the initial qualified LEED casinos in the US.eight Casinos and lodges discover that specific categories of recurrent vacationers are quite fascinated in keeping in amenities that have obviously shown they are centered on the surroundings and sustainable design. To turn into LEED certified, a casino must have a building vitality simulation product created by a competent engineer. Modeling is also essential for the EPAct, HVAC and Developing Envelope tax deductions. Competent tax specialists that know how to make the changes to change LEED laptop designs to EPAct tax deduction versions can evaluate LEED versions and figure out no matter whether huge tax deductions are probable. For case in point, a five hundred,000 square foot LEED on line casino that qualifies for the highest EPAct tax deduction will obtain an quick tax deduction of $900,000 =(five hundred,000*$1.80). Casino house owners who recognize the magnitude of these benefits can use the tax personal savings to support justify the charges connected to achieving LEED status.


Casinos since of their big subspaces are a favored creating class under the EPAct commercial creating tax deduction legislation. House house owners who realize these chances can act during the recent economic downturn to boost their amenities, decrease functioning expenses and probably turn into LEED licensed facilities.