Commercial Casinos Energy Policy Act Tax Opportunity

Prior to the recent recession, commercial casinos generated at least $ 30 billion annually from 2005 to 2008. 1 During this period, US casino owners built new facilities and expanded the size of existing facilities. The economic downturn suddenly stopped the construction of new commercial casinos in the United States, and casino operators are now focusing on reducing the cost of existing facilities.
Tax provisions in Section 179 (D)

Casino operators are increasingly using the EPAct IRC Section 179 (D) tax provisions for commercial energy efficiency, which has been extended until 2013. EPAct tax credits can be used for lighting, HVAC (heating, ventilation, and air conditioning), and eligible energy savings on the exterior walls of buildings. (A building enclosure consists of building foundations, walls, roofs, windows, and doors, all of which control the flow of energy between the inside and outside of the building.) Visit:-

The nature of casino properties

Commercial casinos often include hotel complexes, offering attractive service packages to corporate and family clients. The casino is particularly well suited for EPAct as it has a large gaming floor, hotel rooms, meeting rooms and parking lots. Each of these features typically consumes a large number of square feet, and the benefits of EPAct can be up to 60 cents per square foot for each of the above three measurements.

Some small commercial casinos are around 50,000 sq ft, but most American casinos are usually over 100,000 sq ft. One of the largest MGM Grands on the Las Vegas Strip is about 2 million square feet. The hotel itself is the most popular of the buildings in Section 179 categories. (See “Law on the Most Advantageous Energy Policy: Financial Characteristics of Hotels and Motels”)

It’s common to think of commercial casinos in two states, Nevada and New Jersey. It is true that commercial casinos in these two states have the highest profits, but there are 12 states with commercial casinos in the United States, while other commercial casino states are Colorado, Illinois, Indiana, Iowa, Louisiana, Michigan, Mississippi, Missouri. , Pennsylvania and South Dakota. Members of the American Gaming Association have announced their efforts to reduce energy. The list of casinos includes Boyd Gaming Corporation, Harrahs Entertainment and Inc. And MGM Mirage. They generate power, ERV (Energy Recovery Ventilation), more efficient HVAC units, replace light bulbs with energy efficient lighting, replace windows with energy efficient day systems, thermal solar heat storage, and many other energy savings. Has an initiative that includes. The basic rules introduced to be eligible for tax credits under Article 179D make casinos, especially casino hotels, the most advantageous asset category for tax incentives. This rule requires a reduction in wattage per square foot of at least 25% compared to the 2001 ASHRAE Building Code (American Society of Heating, Refrigering, and Air Conditioning Engineers). A full tax credit is achieved by reducing the wattage per square foot by 40% compared to the ASHRAE 2001 standard. It meets the requirements of building codes and is automatically eligible for a maximum tax credit from EPAct.
Occupied room

For most other categories of buildings, the tax provisions in Section 179D must meet the two-level change requirements. Comparisons are always based on wired lighting, not plugins. Casino hotel rooms often use plug-in lighting, which acts as a space for hotels and motels, which is a major advantage as it is clearly excluded from the two-step tax change requirement. Since the living room is usually one of the largest spaces in hotel casinos, casinos can usually use energy-efficient lighting to significantly increase their EPAct tax credits.

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