New York Proposes Tiered Excise Tax on Crypto Mining Energy Use
- New York State Senator Liz Krueger introduced a bill to impose excise taxes on energy used by crypto mining companies.
- The tax will be tiered, starting at no charge for miners using up to 2.25 million kilowatt-hours (kWh) annually.
- Miners consuming over 20 million kWh per year will face a tax of $0.05 per kWh.
- The proposal exempts miners using exclusively renewable energy sources.
- In Q2, the median cost of mining a single Bitcoin (BTC) surpassed $70,000 due to rising energy costs and mining difficulty.
The proposed excise tax could significantly impact the profitability of crypto mining in New York, especially for those relying on grid electricity, as profit margins are already narrow in this highly competitive industry.
With the median cost of mining Bitcoin exceeding $70,000, the new tax structure may further challenge miners’ financial viability in the state.(Source)
