Kentucky tries to attract cryptocurrency miners through tax incentives
By Bob Garcia
The Blue Grass State wants cryptocurrency miners to feel welcome
In an effort to attract more cryptocurrency miners to the state, lawmakers in Kentucky are seriously thinking about giving the local cryptocurrency miners a tax break. On Tuesday, different state tax breaks were approved by Kentucky lawmakers, including House Bill 230, which is intended to eliminate every single tax related to the electricity purchased by local crypto mining operators.
The new measure had great support, as legislators voted 19 to 2, according to a report shared by the Lexington Herald-Leader. Once this is applied in the state, at least $1 million is expected to be the hit that the local budget will suffer on an annual basis. However, according to the lawmakers, that amount can’t be exactly calculated yet, since “it is unknown how many of the businesses might choose to locate here to avail themselves of this exemption.”
The bill’s sponsor has stated that Kentucky really needs to keep this business alive, and there’s no better way to do it than by offering economic relief. Other supporters, such as Representative Steven Rudy, are backing up the idea that this industry needs extra support since it is very important for the state. He said, “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.”
This isn’t the first time Kentucky has provided some incentives to attract crypto businesses. In January, officials also approved a tax incentive for Blockware Mining in order to allow it to open an operation in Paducah through a $28-million investment.