Kentucky Lawmakers Offer Tax Break to Crypto Miners
The state of Kentucky lawmakers has voted to approve a bill providing tax breaks to crypto miners. This development could herald the transformation of Kentucky into a significant crypto mining haven in the United States.
Crypto Mining Bill Approved
U.S news outlet the Lexington Herald revealed this development in a report on Tuesday. According to the report, the Kentucky House budget committee approved a crypto bill tilted House Bill 230. The bill sought to remove sales tax dues from electricity purchased by crypto miners in the state.
Will put the bill to the house, and a debate ensued with some lawmakers expressing reservations about it. The major shortcoming noted was the considerable electricity consumed by mining facilities which was not a good thing. Rep member Josie Raymond echoed this. “Why do we particularly want this industry in Kentucky?” he asked.
However, other representatives noted that the bill would ensure the state’s crypto mining industry’s growth. It is expected that the bill would encourage more mining companies to move to Kentucky and increase job creation.
Nevertheless, the bill’s sponsor, Representative Steven Rudy, admitted that crypto mining is complex and technical. It is not just a few people sitting in their mom’s basement or their parents’ basement writing code. This is highly sophisticated, highly technical.” he said.
Following the debate, a vote ensued with a 19-2 split for those supporting the bill. The bill now moves to the upper house (senate) for review. If the bill is eventually passed into law, it would cost the State General Fund around $1 million yearly.
More cities open to crypto mining
The rising price of bitcoins and cryptocurrencies in recent months has brought attention to crypto mining. Cities across the world have begun to pass regulations and laws that encourage crypto mining in their regions.
Governments worldwide view the industry as a potential source of revenue, especially in regions with cheap electricity. This is despite the potential environmental problems caused by crypto mining.
Last year, Ukraine waived extensive regulatory operations in the crypto mining industry to encourage more firms. While Belarus recently revealed that it is mauling using its excess electricity generated to mine cryptocurrencies.