Kentucky lawmakers want to give local miners tax breaks.
Lawmakers in Kentucky on Tuesday approved several government tax breaks, including Bill 230, which will remove a sales tax on electricity purchased by local crypto operators.
According to a Lexington Herald Leader report, Kentucky lawmakers voted 19 to 2 in favor of the new measure. The cost of an accounting note for local budget accounts is estimated to be at least $ 1 million per year. The exact cost cannot yet be calculated because “it is unknown how many companies could be here to take advantage of this exception,” lawmakers said.
The accounting sponsor reportedly called on Kentucky to attract more cryptocurrency mining by offering tax breaks on electricity consumed. Actor Stephen Ruddy highlighted the need to support cryptocurrency mining as an industry in the state.
“Cryptocurrency mining requires a lot of power. He has a very big impact on industrial type things. It’s not just some people who sit in their mothers ‘basement or their parents’ basement and write down tokens. It’s actually very difficult and very technical. ”
Kentucky tried to attract cryptocurrency to the country. In January 2021, Kentucky economic development officials approved tax breaks for Blockware Mining to open a cryptocurrency operation in Paducah, with a total investment of $ 28 million. The Kentucky Senate also introduced its own cryptocurrency mining tax bill, Senate Bill 255.