A new bill introduced by New York State Senator Liz Krueger aims to add a tax on electricity used by cryptocurrency mining companies.
The proposal establishes different tax levels based on the annual electricity consumption of a mining operation.
Under the plan, miners using up to 2.25 million kilowatt-hours (kWh) annually would not pay any tax. Usage between 2.26 million and 5 million kWh would be taxed at $0.02 per kWh.
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Those consuming between 5 million and 10 million kWh would be charged $0.03 per kWh, and operations using up to 20 million kWh would pay $0.04 per kWh. Companies using more than 20 million kWh would face a rate of $0.05 per kWh.
Miners who use only renewable energy would not be affected by the new tax. This continues the state’s earlier approach under a temporary mining freeze, approved by Governor Kathy Hochul in 2022, which ended in 2024.
The crypto mining business often works with tight profit margins. For companies that rely on traditional grid electricity, an added tax could make operations more expensive and less sustainable.
On the other hand, companies that invest in renewable energy sources and build their own facilities in remote areas may avoid these new costs. By managing their own energy production, they reduce reliance on grid power, which gives them a cost advantage over miners paying regular electricity rates.
On September 25, Google took a new step into cryptocurrency mining. How? Read the full story.
