Kentucky lawmakers recently approved several state tax exemptions, including House Bill 230, which would remove the tax on sales of electricity purchased by local crypto mining operators.
Kentucky lawmakers voted 19 to two for the new measure. The bill's invoice is supposed to cost the local budget at least $ 1 million a year. The exact cost cannot be calculated so far because "it is not known how many companies can choose to set up here to benefit from this exemption," said lawmakers.
The project sponsor allegedly said that Kentucky needs to attract more cryptocurrency mining companies by offering tax incentives on the electricity consumed. Representative Steven Rudy emphasized that cryptocurrency mining needs to be supported as an industry in the state.
It is not the first time that Kentucky makes decisions with a view to attracting companies in the sector. In January of that year, Kentucky's economic development authorities approved tax incentives for Blockware Mining to open an operation in Paducah. In addition, the Kentucky Senate has also presented its own tax reduction bill for cryptocurrency mining, Senate Bill 255.