New York State senator proposes tax on crypto mining energy use

New York State Senator Liz Krueger has introduced a bill proposing a tiered excise tax on the energy consumed by crypto mining companies in the state. The bill establishes a tax structure based on the amount of kilowatt-hours (kWh) used, with no charges for miners consuming up to 2.25 million kWh annually. Those consuming between 2.26 million and 5 million kWh will incur a tax of 2 cents per kWh, escalating to 5 cents per kWh for usage above 20 million kWh. The proposal exempts miners who utilize 100% renewable energy, allowing them to operate without tax. As the mining industry is highly competitive with slim profit margins, this excise tax may further strain smaller mining operations, potentially driving them to relocate to areas with lower energy costs. The introduction of this tax comes at a time when energy prices have soared, raising concerns among mining companies, particularly those dependent on traditional grid electricity. This legislative move reflects ongoing scrutiny of the environmental impacts of crypto mining in New York.

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