New York Proposes Tax on Proof-of-Work Miners to Fund Energy Programs
- Assembly Bill A9138, introduced in New York, proposes taxing proof-of-work miners based on electricity consumption.
- Tax rates range from 2 to 5 cents per kilowatt-hour, depending on annual electricity usage.
- Collected taxes will support New York’s Energy Affordability Programs for low- to moderate-income households.
- Mining operations using renewable energy and operating off-grid are exempt from the tax.
- The tax is set to take effect on January 1, 2027, if passed into law.
The proposed legislation aims to ensure that companies engaged in proof-of-work mining contribute fairly to rising electricity costs while promoting sustainable practices by exempting operations powered by renewable energy sources. The collected funds are earmarked for energy affordability programs benefiting low- and moderate-income households in New York.
By imposing a tax on high electricity-consuming mining operations, the bill seeks to alleviate utility costs for vulnerable populations while encouraging cleaner energy use within the digital asset sector. (Source)
