A brand new invoice launched by New York State Senator Liz Krueger goals so as to add a tax on electrical energy utilized by cryptocurrency mining corporations.
The proposal establishes totally different tax ranges based mostly on the annual electrical energy consumption of a mining operation.
Beneath the plan, miners utilizing as much as 2.25 million kilowatt-hours (kWh) yearly wouldn’t pay any tax. Utilization between 2.26 million and 5 million kWh could be taxed at $0.02 per kWh.
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These consuming between 5 million and 10 million kWh could be charged $0.03 per kWh, and operations utilizing as much as 20 million kWh would pay $0.04 per kWh. Firms utilizing greater than 20 million kWh would face a charge of $0.05 per kWh.
Miners who use solely renewable vitality wouldn’t be affected by the brand new tax. This continues the state’s earlier method beneath a brief mining freeze, accepted by Governor Kathy Hochul in 2022, which led to 2024.
The crypto mining enterprise usually works with tight revenue margins. For corporations that depend on conventional grid electrical energy, an added tax might make operations dearer and fewer sustainable.
Alternatively, corporations that spend money on renewable vitality sources and construct their very own services in distant areas could keep away from these new prices. By managing their very own vitality manufacturing, they scale back reliance on grid energy, which provides them a price benefit over miners paying common electrical energy charges.
On September 25, Google took a brand new step into cryptocurrency mining. How? Learn the total story.
