Commercial Casinos Energy Policy Act Tax Opportunity

The very Casino Environment

Before the recent economic downturn, commercial casinos stored at least $30 billion in revenues each year from 05 through 2008. 1 During this period, US casino owners produced new facilities and expanded the size of their existing comforts. As a result of the economic downturn, new US commercial 더킹카지노 formation has come to a screeching halt and casino affiliates are now focused on existing facility cost reduction.

The Spot 179(D) Tax Provisions

Increasingly, casino operators are taking benefit for the EPAct IRC section 179(D) commercial building strength efficiency tax provisions, which have been extended through 2013. EPAct tax deductions are available for qualifying energy reductions in light, HVAC(heating, ventilation, and air conditioning), and building wrapper. (Building envelope consists of the building’s foundation, walls, ceiling, windows, and doors, all of which control the flow of energy between the interior and exterior of the building. )

The Nature of Casino Properties

Commercial casinos often encompass hotel lodges, which offer attractive packages of services for their corporate and family customers. Casinos are particularly suited to EPAct because of their massive gaming floors, hotel occupancy rooms, meeting halls, as well as parking garages. Each of these features typically consumes large square footage and the EPAct benefit has a potential for up to 60 centaines per square foot for each of the three measures called above. Some of the smallest commercial casinos are about 65, 000 square feet while most American casinos are typically over 80, 000 square feet. One of the largest ones, MGM Grand to the Las Vegas strip is almost 2 million square feet. Hotels themselves are the most favored of Section 179 building category. (See “Hotels and Motels Most Favored Energy Policy Respond Tax Properties”)

It is common to think of commercial casinos as in two states Nevada and New Jersey. While it is true that the two states have the largest commercial casino revenues, there can be 12 states with commercial casinos in the United States, the other advertisement casino states are: Colorado, Illinois, Indiana, Iowa, Louisiana, Michigan, Mississippi, Missouri, Pennsylvania, and South Dakota. Individuals of the American Gaming Association have publicized some of their obligations to energy reduction. Reporting casinos include Boyd Game Corporation, Harrah’s Entertainment, Inc., and MGM Mirage. They support projects which include significant energy savings via cogeneration, ERV(energy recovery ventilation), more efficient HVAC units, replacing incandescent your lights with energy efficient lightings, windows with energy efficient day lighting style systems, solar thermal storage and numerous other energy saving initiatives.

The underlying rule set to qualify for the Section 179D lighting tax bill deduction makes casinos and particularly casino hotels quite possibly the most favored property category for the tax incentive. The leadership set requires at least a 25% watts-per-square foot lessening as compared to the 2001 ASHRAE (American Society of Warming up Refrigeration and Air Conditioning Engineers) building energy code conventional. Full tax deduction is achieved with a 40% watts-per-square foot reduction compared 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 unit installation that meets that building code requirement will on auto-pilot qualify for the maximum EPAct tax deduction.

Occupancy Rooms

On most other building categories, the Section 179D tax conventions require compliance with the bi-level switching requirement. The compare is always based on wired rather than plug-in lighting. Casino inn occupancy rooms have a major advantage in that they often work with plug-in lighting, and because these rooms function as hotel and also motel spaces, they are specifically excluded from the tax bi-level switching requirement. Since occupant rooms are usually one of the larger sized spaces in hotel casinos, casinos are typically able to apply energy efficient lighting to generate large EPAct tax deductions for those facility.

Back of the House Spaces

Casinos often have large kitchen’s, storage, and laundry (so called back of the house) spaces that have historically used T-12 fluorescent lighting. The lighting is so energy inefficient compared to today’s lighting products and services that it will be illegal to manufacture in the United States after Come july 1st 1, 2010. 4 Once manufacturing of these prior output lighting products ceases, the cost of replacing these inefficient designs will increase. Simply stated, casinos should consider acting now to replace those lighting fixtures to save both energy and lamp replacement rates. The EPAct lighting tax incentive can be used to address the very opportunities related to these legally mandated product changes

Tennis ball Rooms, Banquet Rooms and Restaurants

These areas of casinos have historically used designer type lighting that is electrical power inefficient and often very expensive to maintain and replace. In particular, switching bulbs and lamps in high ceilings is very high dollar since expensive mobile hydraulic platform equipment must be renting or purchased to handle the replacements. New lighting providers, in particular, light emitting diode (LED) products, use a small part of the energy and have a much longer useful life and are generally now being substituted. The combination of large energy cost you reduction, operating cost reductions, utility rebates and EPAct tax deductions can greatly improve the economic payback right from these more costly lighting upgrades.

Parking Garages

Many internet casinos have large adjoining parking garages that can save sizeable energy costs and generate large tax deductions by just upgrading to energy efficient fixtures. In Notice 2008-40 set March 7th, 2008, the IRS announced that parks garages are a property class that is specifically entitled to make use of EPAct tax deductions. Also, parking garages are omitted from the tax bi-level switching requirement. Please see the September, 2008 International Parking Institute article devoted to parking garages EPAct lighting deduction tax opportunities. 5

Slot Machines along with Gaming Floors

One of the biggest energy users on hotel game floors is slot machines. Although these were early adapters for fluorescent technology, even these energy efficient bulbs normally have to always be changed 3 times a year because of 24/7 operating hours. With the high labor maintenance costs, casino owners are now moving to LED technology in their slot machines. LED’s, while they support higher up front costs, have high energy efficiency and much more life cycle, offering significant savings in labor and maintenance costs.