Kentucky needs to attract more crypto mining businesses by offering tax breaks, local lawmakers believe.
Lawmakers in Kentucky are looking to impose tax breaks for local cryptocurrency miners.
Kentucky lawmakers on Tuesday approved several state tax breaks including House Bill 230, which would remove the sales tax from electricity purchased by local crypto mining operators.
According to a report by the Lexington Herald-Leader, Kentucky legislators voted 19 to two for the new measure. The bill’s fiscal note is reportedly estimated to cost the local budget at least $1 million annually. The exact cost cannot be calculated so far because “it is unknown how many of the businesses might choose to locate here to avail themselves of this exemption,” lawmakers said.
The bill’s sponsor reportedly urged that Kentucky needs to attract more cryptocurrency mining businesses by offering tax breaks on consumed electricity. Representative Steven Rudy emphasized that cryptocurrency mining needs to be supported as an industry in the state.
“Mining for cryptocurrency takes a lot of electricity. It is very heavily impactful on industrial-type things. It is not just a few people sitting in their mom’s basement or in their parents’ basement writing code. This is actually highly sophisticated, highly technical,” he said.
Kentucky has been attempting to attract crypto business to the state. In January 2021, Kentucky economic development officials approved tax incentives for Blockware Mining to open a crypto mining operation in Paducah, with a total investment of $28 million. The Kentucky Senate has been also advancing its own tax break bill for cryptocurrency mining, Senate Bill 255.