Block reward miners get tax breaks in Kentucky

Kentucky Governor Andy Beshear has signed a pair of legislative bills that enable block reward miners to take advantage of tax breaks in the energy-rich Commonwealth.

Senate Bill 255 extends the state’s clean energy-focused programs to block reward miners who invest at least $1 million in blockchain mining equipment operating in-state. Similarly, House Bill 230 grants those miners a series of sales and excise tax breaks on electricity purchased by digital currency facilities, which consume power in large quantity. 

Local legislators introduced these bills at the start of the year to help the Commonwealth compete for business in the blockchain mining industry. Kentucky wishes “to become a national leader in emerging industries which use substantial amounts of energy,” per the bill introduced by Republican General Assembly Representatives Steven Rudy and Chris Freeland. 

Bill 230 sailed through both legislature branches, overwhelmingly winning a 19-to-2 vote in the House and later getting the Senate’s sign-off voting in favor of the proposal by 29-7. Bill 255 also met little resistance, passing the Senate by a vote of 74-19 from lawmakers before eventually being signed into law by the Governor alongside Bill 230 on March 25.

According to public records, the laws will go into effect on July 1. Collectively, the bills work to make the state an attractive destination for block reward miners. The bill’s fiscal note puts the estimated cost to the state’s General Fund at $1 million per year.

By encouraging this industry, the bills’ sponsors hope to increase business revenue and jobs to communities where the manufacturing exodus ravaged their local economies. The areas still retain an abundance of cheap energy, which officials hope to leverage as a competitive advantage, making the region more attractive to energy-intensive blockchain industry businesses. 

See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”

Source: Read Full Article