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Commercial Casinos Energy Policy Act Tax

Casino environment

Prior to the recent economic downturn, commercial casinos generated at least $30 billion in annual revenue between 2005 and 2008.1 During that time, US casino owners built new facilities and expanded the size of existing facilities. Due to the economic downturn, the construction of new commercial casinos in the United States has stalled and casino operators are now focusing on reducing the cost of existing facilities. Halo69

Article 179 (D) Tax Regulations

Casino operators are increasingly taking advantage of Section 179(D) of the EPact IRC commercial building energy efficiency tax rules, which have been extended to 2013. The EPact control is available to control the allowable energy in lighting, HVAC (heating, ventilation) and air conditioning). conditions) and building envelopes. (The roof of the building consists of the foundation of the building, walls, roof, windows and doors that control the flow of energy between the inside and outside of the building.)

occupied room

For other building categories in general, the tax provisions of Section 179D require compliance with the two-step amendment requirements. Comparisons always show wired and non-plug-in lights. Casino hotel occupancy rooms have a great advantage because they often use plug-in lighting and these rooms function as hotel and motel rooms, they are especially exempt from the two-level switching fee requirement. Since the resident’s room is usually one of the largest rooms in a casino hotel, casinos can usually use energy-efficient lighting to get a large EPact tax deduction for the facility.

The back room

Casinos often have large kitchens, warehouses, and laundry rooms (referred to as “backrooms”) that traditionally used T-12 fluorescent tubes. This lighting will become energy inefficient compared to current lighting products that would be illegal to manufacture in the United States after July 1, 2010.4 Once production of this previous generation lighting product is discontinued, the replacement cost of this inefficient lighting will increase. Simply put, casinos should consider taking steps to replace these bulbs to save energy and bulb replacement costs. EPact lighting tax incentives can be used to take advantage of opportunities related to product regulatory changes

Casino property

Commercial casinos are often associated with hotel resorts that offer attractive service packages to corporate customers and their families. The casino is perfect for EPact with its large games room, hotel accommodations, meeting rooms and garage parking. Each of these functions typically uses a large box record and EPact benefits can potentially be as much as 60 cents per box for each of the three sizes above. Some of the smaller commercial casinos are around 50,000 square feet, while most American casinos are typically over 100,000 square feet. One of the largest, the MGM Grand, is located on the nearly 2 million square foot Las Vegas Strip. The hotel itself is the most preferred category 179 building. (See “Most Preferred Hotels and Motels Property Taxes Energy Policy”).

It is common to imagine commercial casinos in two states, Nevada and New Jersey. While it is true that these two states have the largest commercial casino advantage, there are 12 states with commercial casinos in the United States, other commercial casino states: Colorado, Illinois, Indiana, Iowa, Louisiana, Michigan, Mississippi, Missouri, Pennsylvania and South Dakota. Members of the American Gaming Association have released several pledges to save energy. The reported casinos include Boyd Gaming Corporation, Harrah’s Entertainment, Inc., and MGM Mirage. He has projects that include significant energy savings through cogeneration, ERV (Energy Recovery Ventilation), more efficient HVAC units, replacement of incandescent lamps with energy efficient lamps, windows with energy efficient cloud lighting systems, solar thermal storage and many energy saving initiatives. other.

The ground rules for benefiting from Section 179D mild tax deductions make casinos, and especially casino hotels, the property category of choice for tax incentives. The established rules require a reduction of at least 25% watts per square foot from the American Society of Heating Refrigeration and Air Conditioning Engineers (ASHRAE) Building Energy Code 2001. The full tax reduction is achieved by reducing 40% of watts per square meter compared to ASHRAE 2001 standards. ASHRAE 2004 hotel/motel building codes require a 40% watt reduction, which means a hotel or motel lighting system that complies with that building code automatically gets the maximum EPAct tax deduction.

Ballroom, banquet hall and restaurant

This casino area has historically used types of designer lighting that are not energy efficient and are often very expensive to maintain and replace. In particular, replacing high ceiling lamps and lights is very expensive because you have to rent or buy expensive mobile hydraulic platform equipment to replace them. Newer lighting products, and especially light-emitting diode (LED) products, use less energy and have longer lifespans and are now being replaced. The combination of significant energy cost savings, reduced operating costs, reduced service charges and reduced EPact charges can increase the economic returns of this more expensive lamp upgrade.

Parking garage

Many casinos have parking lots nearby, which can save you significant energy bills and generate tax deductions by switching to energy efficient equipment. In Notice 2008-40, issued on March 7, 2008, the IRS stated that parking lots, as a special class of property, are eligible to use the EPact tax deduction. In addition, the two-level garage is exempt from the obligation to move. Please see the September 2008 International Parking Institute article, specifically on EPAct Easy Parking Tax Reduction Opportunities

slot machines and gaming floors

One of the biggest energy consumers on hotel gaming floors are slot machines. Although these were the first to use fluorescent technology, these energy efficient lightbulbs also typically need to be replaced three times a year due to their 24/7 operating hours. Due to the high labor costs of maintenance, casino owners are now switching to LED technology in their slot machines. While LEDs have a higher initial cost, they are very energy efficient and have much longer life cycles, resulting in significant savings in labor and maintenance costs.


Casinos, thanks to their typical 24-hour occupancy, can achieve significant energy cost savings through energy-efficient HVAC systems. Nevada’s warm climate in particular makes energy-efficient HVAC systems a very worthwhile investment. Happily. With the highest casino revenues, Nevada has America’s second-highest capacity for renewable geothermal energy efficiency.6 Several categories of high-efficiency HVAC investments often qualify for the EPAct HVAC tax incentive, including geothermal and thermal storage.

My LEED Casinos online slot machine

We assume that more casinos will receive LEED status. (See Article 7 LEED Building Tax Opportunities). Not seen in 2008, The Palazzo, Las Vegas Casino, and are proudly LEED certified and LEED certified and non-US certified. 8 Casinos and hotels are finding that some categories of repeat travelers want to stay in properties that have demonstrated a clear focus on the environment and genuine design. To be LEED certified, casinos must have an energy simulation model of the building created by a qualified engineer. Modeling is also required for EPAct, HVAC, and building envelope tax deductions. Qualified tax professionals who understand how to convert a Leed computer model to an Epact tax deduction model can evaluate a Leed-Leed model to determine if a large tax deduction is worth it. For example, a 500,000-square-foot LEED casino that qualifies for a maximum EPAct tax credit will receive a direct tax credit of $ 900,000 = $ 510,800 *). Casino owners who understand the magnitude of these benefits can use their tax savings to justify the cost of LEED status.

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