Kentucky Lawmakers have Steve Rudy. Chris Freelance has presented a bill to exempt commercial cryptocurrency miners from the sales taxes and excise taxes for the electricity bill on the rigs and mining equipment.
The bill intends to encourage more cryptocurrency miners to conduct business in the energy-rich area.
Kentucky Bill To Give Tax Exemption to Crypto Miners
The bill presented by two general assembly representatives intends to attract the cryptocurrency miners as the region can become a national leader in crypto mining. The Kentucky region is rich in energy supply and has low energy rates. With taxation relief, the commercial crypto miners would be able to leverage the resources in the region and enable the commonwealth to compete in the growing field. The bill adjudicates that the commercial crypto miners get relief from paying 6 % excise tax and 6% sales tax on the mining hardware and electricity bills.
The 13-page bill is submitted in the General Assembly as reported by The Block.
Titled s “An ACT Relating to the Taxation of the commercial mining of cryptocurrency,” it would bring additional incentives and tax relief to the crypto miners. The bill states that sales and use tax exemptions on the tangible personal property directly used and the electricity used in commercial mining of cryptocurrency as of the date of the approved application.”
It also highlights that the General Assembly has encouraged and promoted blockchain technology, and the commonwealth has the chance to become the national leader in the emerging commercial mining industry with its established infrastructure and abundant electricity supply. As the cryptocurrency industry goes through a transformative phase, Bitcoin and crypto mining demand has also grown multifold.
With Bitcoin mining difficulty increasing the competitiveness in the bitcoin miners, there is a need for better crypto mining facilities. Kentucky lawmakers presented the bill to attract commercial miners to the region, which would boost the commonwealth’s initiatives to grow in the new field.
With the increase in Bitcoin mining difficulty, the crypto mining sector is undergoing a massive shortage of supply of the latest mining equipment. The miners are moving to older bitcoin mining hardware in secondary markets, considering increased crypto markets.
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