There’s China that banned crypto mining because of the high energy consumption. And then there’s Kentucky that will provide tax relief to those mining Bitcoin. The new Kentucky bill will provide tax breaks to businesses mining cryptocurrencies. This is done in order to attract more crypto mining companies and individuals to the area. It will also help the miners retain more profit and ultimately boost their business and expand operations.
The Kentucky bill
The bill proposes that sales tax will be removed from the electricity purchased by local cryptocurreny miners for mining. The report showed that the bill was passed with a majority of votes in favor of it. It is also suggested that the bill will cost the government almost around $1 million annually. Though if we consider the factor that this move was implemented to attract more mining businesses, then the cost is also bound to increase. So, as of now, the exact figure that this bill will cost the state is unknown.
The bill has strictly emphasized the fact that crypto mining needs to be treated as a proper industry. And now that we are slowly moving towards the era of Bitcoin and other digital currencies, it is important to have as many mining businesses in the state as possible. A representative of the state, Steven Rudy, also mentioned that mining is an extremely sophisticated process and takes up a lot of electricity. And so by giving tax reliefs on electricity could be the easiest way to attract mining businesses. Just a while back, another investment was made by the Kentucky government in opening a crypto ming operation, Paducah.
What are your thoughts on the recent tax benefits given by the government to local miners under the Kentucky bill? And do you think this will actually help in bringing in more business to the state? let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: Bitcoin recovers from the recent crash and crosses $50,000
