Kentucky is trying to attract cryptocurrency miners to the state by offering them tax breaks. As? Two Kentucky lawmakers urged the state to offer tax breaks to Bitcoin and cryptocurrency miners to take advantage of the energy-rich American region.
General Assembly representatives Steven Rudy and Chris Freeland proposed a bill last week to exempt commercial cryptocurrency miners from paying certain taxes. Miners would be exempt from paying 6% sales tax or 6% excise duty on electricity bills and mining equipment on their platforms.
Could Kentucky become a leader in the mining industry?
Representatives believe Kentucky could become a national leader in cryptocurrency mining thanks to its low rates on electricity and the abundant supply that is available in the US region. Therefore, the tax breaks would help the Commonwealth of Kentucky to compete further and emerge as a market leader in the cryptocurrency industry.
According to the bill, commercial cryptocurrency mining "should and should be taxed similarly to historical forms of industrial production or processing, in order to continue to encourage the location and expansion of such operations in the Commonwealth, rather than in other states and at the same time compete for such companies “.
How to get cryptocurrency mining facility status
To be considered a cryptocurrency mining facility, the installation must have a colocation facility. According to the bill, a colocation facility is an industrial facility of no less than two hundred thousand (200.000) square feet located in the Commonwealth, which is used for commercial cryptocurrency mining. It could also be used to “host people engaged in commercial cryptocurrency mining through the use of the facility's infrastructure, including servers and network hardware powered by Internet bandwidth, electricity and other services generally required for such mining operations. ".
Therefore, the tax breaks would apply to miners who operate colocation facilities for cryptocurrency mining operations. Republican lawmakers presented the 13-page bill to the General Assembly on January 8, and the committee is currently examining it.
Cryptocurrencies and blockchain technology are gaining rapid adoption from countries and regions globally. Due to the massive use of energy, regions with low-cost electricity tariffs have become a hotbed for cryptocurrency miners.
To date, China remains the leader in the cryptocurrency mining sector. It houses many of the largest mining pools in the world, made up of large groups of miners who combine resources and share processing power.
However, other states are entering the world stage, just like Kentucky. And how do you extract your precious coins? Or would you rather simply trade them with platforms such as Bitcoin system? Let us know in the comments below!
