CityCenter in the green


As I had reported in an earlier, Why going green makes dollars and sense, the Nevada legislature in 2005 had passed a law giving very generous tax breaks to Green projects. Earlier this year, they decided perhaps they were too generous among concerns that state revenues may be negatively affected.

Only 5 projects would be affected by the change in the law, but after debate those projects will be grandfathered in to the original statute. Some of the projects, like the Molasky center have already been completed. Out of the five, CityCenter is the biggest winner by a landslide. The project is estimated to cost 7 billion dollars and will be the largest green project in the state.

The estimated tax savings under the '05 law were estimated at around $900 million dollars. The revised law reduces the tax breaks by about half.

CityCenter isn't the only Las Vegas strip property to cash in. The Palazzo which is due to be completed next year and the Fountainebleau are also grandfathered in. Both properties have also planned to add residential units to their properties as well.

There is still a catch however.  All of the properties still need to meet the green certification upon completion in order to be eligible for the tax breaks according to the state's Energy office.


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