Kentucky Lawmakers Approve Tax Breaks for Crypto Miners

Most Kentucky lawmakers have approved a bill offering tax breaks for miners as a way to help attract mining companies to the region.

March 4, 2021 | AtoZ Markets According to the publication Lexington Herald, Kentucky lawmakers approved the bill number 230, which offers a “tax exemption on the sale and use in respect of personal property, as well as electricity used cryptocurrency when commercial production.”

The bill has now been submitted to the state’s upper legislature, in addition to Bill 255 on tax incentives for cryptocurrency mining operations. An explanatory note to the bill says the state’s General Purpose Trust Fund, which collects income and property tax revenues, will start at $1 million per year.

Miners Tax Break to Spur Job Creation in Kentucky

Committee members said the move is part of larger plans by Kentucky lawmakers to spur job creation and industry growth. However, some legislators have noted the shortcomings of the bill. So, since mining enterprises consume a large amount of electricity, this can have negative consequences for the state.

Cryptocurrency mining requires a lot of electricity,” said Rep. Steven Rudy, co-sponsor of the bill. “These are not just a few people who are sitting in the basements of their parents’ houses and writing code. In fact, it is very difficult and technical. But we still want to attract more mining companies and create the best conditions for them.”

Recall that lawmakers in the US state of Kentucky introduced a bill proposing tax breaks for mining firms to attract more such companies in January this year.

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