New Tax Bill Introduced in the US Concerning Bitcoin and Cryptocurrencies! Here’s What You Need to Know…

While the government shutdown and its possible effects were the main agenda item in the US, a surprising bill came from the state of New York.

Accordingly, a bill introduced in New York state proposes a graduated electricity tax on cryptocurrency miners.

At this point, New York State Senator Liz Krueger and Assembly Member Anna Kelles introduced Bill S8518, which would impose an electricity consumption tax on Bitcoin (BTC) mining companies that use significant amounts of energy.

According to the bill, miners using up to 2.25 million kilowatt-hours (kWh) annually will not be taxed.

BTC mining companies with consumption above this threshold are proposed to be taxed with a two-cent per kWh levy for usage between 2.26 million and 5 million kWh, three cents for usage between 5 million and 10 million kWh, four cents for usage up to 20 million kWh, and five cents for usage exceeding 20 million kWh.

The tax revenue will go toward the state’s energy assistance program to support low-income and middle-class households.

In contrast, miners using renewable energy sources will not be taxed.

The organization noted that the crypto mining industry is facing declining profitability and suggested that the passage of such a bill could push miners to leave New York.

Senator Liz Krueger said in a statement:

“This bill will ensure that miners who increase New Yorkers’ electricity bills pay their fair share, while also providing direct assistance to households struggling with high electricity bills.

The arrival of mining facilities creates an additional annual electricity cost of approximately $79 million for residents and $165 million for small businesses.

*This is not investment advice.

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