Kentucky To Become A Hotbed For Bitcoin Miners
Kentucky is aiming to become the US’ Bitcoin and cryptocurrency mining industry hotbed after two lawmakers submitted a draft tax incentive for Bitcoin miners.
The bill was submitted on 8 January 2021 by State Representatives Chris Freeland and Steven Rudy. It calls for Bitcoin miners to receive a 6% tax exemption, applicable either to their sales tax or the excise taxes on their electricity bills and mining equipment.
The bill states that it aims for the Kentucky to compete with other states, and hopefully ‘become a national leader’ with tax incentives and its cheap energy costs.
Kentucky To Incentivise Bitcoin Miners With Cheap Energy and Tax Relief
Kentucky has an abundance of cheap energy thanks to natural petrochemical resources and hydroelectric power generated by the Tennessee Valley Authority, and this was emphasised in the bill as a main attraction for any Bitcoin miner the state hopes to attract.
Kentucky ‘has an opportunity to become a national leader in the emerging industry of the commercial mining of cryptocurrency, given its abundant supply of electricity that can be provided at lower rates than most states, and its established infrastructure to provide such energy,’ according to the bill.
The proposal claims proactive measures must be taken to to help build better blockchain infrastructure in Kentucky, or see it lose out to other states.
Texas, Montana and Colorado are leading the way in the US Bitcoin mining industry, but with its abundance of cheap electricity, and if it passes the bill the offer tax incentives, Kentucky could become a player in the mining industry.
It’s hoped, therefore, that the bill will set in motion an investigation into a potential economic boost for the state of Kentucky, if it was to attract Bitcoin miners to the state.
Bitcoin Mining Industry Growing at Rapid Rate
The US is in a race with the likes of Russia, Kazakhstan and Pakistan to turn cheap energy into value and take Bitcoin hashrate from China.
China has long been the hotbed for the Bitcoin and cryptocurrency mining industry, but with regulatory uncertainty and cheaper energy rates opening up elsewhere, other jurisdictions are now catching up.
There is billions being spent by large US mining companies as it races to become the global hotbed for Bitcoin mining.
The Kentucky lawmakers see other states taking advantage of their resources and attracting lots of investment, and now they want the Bluegrass State to get its share.
Kentucky has the copyright for fried chicken. If its lawmakers act quickly, it might just become the national hotbed for Bitcoin miners.
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