Lawmakers in Georgia and Illinois are reviewing proposals to exempt cryptocurrency miners from taxes and tax requirements. More US cities are also looking to attract companies from the sector.
Some regions of the United States are considering applying tax incentives for miners of Bitcoin as a way to attract companies from the crypto sector. In separate initiatives, lawmakers in Georgia and Illinois have begun weighing this possibility, a move that could help foster the growth of the crypto mining industry in those locations.
Georgia lawmakers weigh bill
The Georgia House of Representatives this week received a bill that seeks to “exempt the sale or use of electricity used in commercial mining of digital assets“. As reported The Blockthe bill, listed as 1342, was introduced on Monday, February 14, by a group of Republican state legislators.
As such, the legislation would amend Georgia Official Code Section 48-8-3, relating to sales and use tax exemptions, to exempt miners from Bitcoin and other cryptocurrencies for the sale or use of electricity used in such operations. The proposal has not yet been voted on and is still waiting for the decision of the legislators.
as you pointed out TheBlock, the move is perhaps not surprising given the existing footprint for miners in Georgia. fortune outlined the landscape earlier this year, noting that major U.S. crypto mining companies such as foundry, They have operations in the state. On the other hand, a report from 13WMAZ published last year indicated that access to nuclear power made the state an attractive option for mining operators in Bitcoin.
Illinois Seeks to Extend Tax Incentives to Crypto Miners
A few weeks ago, legislators from Illinois, a state that is home to the populous city of Chicago, also put a similar proposal on the table.
First introduced in January by Republican State Senator Sue Rezin, the bill would seek to extend incentives currently applicable to data centers to crypto mining operations. The document legislative, registered as the 3643highlights the claim of the regulations to provide tax benefits to miners:
Amends “qualified Illinois data center” to include data centers engaged in cryptocurrency mining for a 60-month period that may begin no earlier than 60 months prior to the effective date of this Act; or data centers dedicated to cryptocurrency beginning before the effective date of this Act and ending after the effective date of this Act in the case of a data center.
As indicated The Blockthe tax incentive program cited in the bill has existed since 2019. According to a mid-2020 report prepared by the Illinois Department of Commerce, more than $160 million worth of tax incentives have been extended to six operators of data centers. The report cites the creation of 120 jobs and $1.6 billion in investments.
Who would qualify for the program?
To qualify for the program, prospective applicants must invest at least $250 million, create at least 20 jobs, and have achieved carbon neutral status or green building certification, among other requirements. The program exists for both new entrants and existing operations in the state, as long as they meet the requirements.
According to him text of the bill, this program would be extended to digital currency miners such as Bitcoin. A report from Chicago Tribune from last year mentions some of the existing mining operations in Illinois, including an operation run by a company called Sangha Systemslocated in a former steel mill in Putnam County.
I agree with you public records, this week, the bill won the co-sponsorship of Democratic Sen. Julie Morrison.
More US Cities Seeking to Attract Crypto Businesses
Georgia and Illinois are the latest US states to consider legislative changes to attract businesses from the burgeoning crypto industry. Other jurisdictions like Kentucky, Texas, Miami and New York have also been making moves to transform themselves into attractive tech hubs.
Last year, lawmakers from the Kentucky House of Representatives approved a bill that eliminates sales tax obligations on electricity purchased for use by cryptocurrency mining companies. The project was signed by the state governor, Andy Beshear, in March and became effective on July 1, 2021.
Meanwhile, other US states like Texas have been seducing miners after the exodus from China. Many mining operations Bitcoin have been installed in that state in recent months due to the low energy costs it offers.
For his part, the mayor of Miami, who has repeatedly expressed his support for BitcoinLast year, Francis Suárez made a call to miners to relocate to that town. The politician has also pushed other initiatives to attract crypto businesses and enthusiasts, including a promise to turn the city into a tech hub.
More recently, the mayor of New York, Eric Adams, has echoed some of Suárez’s strategies, although he has distinguished himself from his contemporary by expressly noting that he does not agree with the mining of digital assets. “I support cryptocurrencies, not crypto mining“, said at the beginning of the month citing the extensive use of energy that such activity requires.
Article by Hannah Estefanía Pérez / DailyBitcoin
WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.