According to reports, lawmakers in the state of Kentucky weigh up proposals for new laws that would make the state a more attractive destination for block reward miners. Representatives Steven Rudy and Chris Freeland submitted a draft bill for consideration last week, which could see the state introduce measures designed to support block reward mining businesses to set up shop in the state. The proposed law also looks to incentivize energy use.
The bill proposes tax exemptions on crypto mining machines.
Among a package of incentives aimed specifically at the crypto mining industry, the bill proposes “sales and use tax exemptions on the tangible personal property directly used and the electricity used in commercial mining of cryptocurrency as of the date of the approved application,” as well as other measures designed to appeal to mining firms. Known as “AN ACT relating to the taxation of the commercial mining of cryptocurrency,” the measures will also look to incentivize energy use, effectively creating a package of incentives for mining firms to choose to operate from the state.
Kentucky aims to become a destination for new mining businesses.
In the preamble to the bill, the legislators noted that the measures could give Kentucky a competitive edge as a new crypto mining business destination. “The Commonwealth has an opportunity to become a national leader in the emerging industry of the cryptocurrency mining given its abundant supply of electricity that can be provided at lower rates than most states, and the established infrastructure to provide such energy through the Tennessee Valley Authority and other electricity providers.” The crypto mining bill was first presented on January 8, and remains at an early stage of the legislative process.