How do you see this affecting small to medium miners? People with say ten to twenty 100Th ASICS?
Topic: Oklahoma Lawmakers To Introduce Tax Incentives For Crypto Miners (Read 102 times)
Stupid Zoo York 'lawmakers' (read: clowns) have no idea that mining farms STABILIZE the power grid by consuming RENEWABLE hydro energy that would otherwise be wasted. Even better, large mining farms can be switched off on command during peak power usage!
It's extremely expensive to transmit the cheap Niagara power 400 miles away to NYC/Long Island, so what else will NY do with it??. They have NO understanding of crypto mining.
I read the fine print of the bill. It requires an investment of at least $50k, and even then, you only get 1% of the cost back as a tax credit. There are extra credits for hiring employees, but let's be honest, only really large farms can do that. The final benefit is sales tax exemption for all equipment involved in mining and on the electricity, which saves at least 4.5%. Overall, it looks like a 5.5% initial benefit and a 4.5% ongoing benefit to me.
It's probably better for me to set up shop in TX than OK considering the cheaper power and the fact that I can get nowhere near that big now. Miners can already defer sales tax for up to 1 year in most U.S. states with a reseller certificate anyway, according to my accountant.
It's extremely expensive to transmit the cheap Niagara power 400 miles away to NYC/Long Island, so what else will NY do with it??. They have NO understanding of crypto mining.
I read the fine print of the bill. It requires an investment of at least $50k, and even then, you only get 1% of the cost back as a tax credit. There are extra credits for hiring employees, but let's be honest, only really large farms can do that. The final benefit is sales tax exemption for all equipment involved in mining and on the electricity, which saves at least 4.5%. Overall, it looks like a 5.5% initial benefit and a 4.5% ongoing benefit to me.
It's probably better for me to set up shop in TX than OK considering the cheaper power and the fact that I can get nowhere near that big now. Miners can already defer sales tax for up to 1 year in most U.S. states with a reseller certificate anyway, according to my accountant.
Lawmakers in Oklahoma have advanced legislation in recent days that, if finalized, would extend a tax break to bitcoin and cryptocurrency miners that set up shop in the state.
The Commercial Digital Asset Mining Act of 2022, sponsored by state senator John Montgomery and state representative Ryan Martinez, aims to reduce the expenditures related to hardware and electricity used by commercial mining operations.
"The original intent of the Legislature that the Oklahoma Tax Code recognize the continuing development of new and advanced manufacturing and industrial processing technologies has led to new industrial processes," the bill states. "Blockchain technology used in the commercial mining of digital assets is an industrial process that should be taxed in a manner similar to historical forms of manufacturing or industrial processing in order to encourage the location and expansion of such operations in this state rather than in competing states."
A report by regional news outlet KOKH indicated that incentives worth a maximum of $5 million are being eyed, citing comments from Sen. Montgomery.
Public records show that the legislation cleared the Oklahoma Senate on March 22 in a 29-16 vote. The bill moved to the legislature's lower chamber on March 23 and was referred to its technology committee on March 30.
Oklahoma is among a growing crop of US states eyeing the expanding bitcoin mining sector. States like Illinois and Georgia are weighing similar measures, and Kentucky's government approved such tax incentives last year.
Meanwhile, New York lawmakers are pushing for restrictions on the state's mining sector, citing environmental concerns.
Source: https://www.coinshots.com/news/oklahoma-lawmakers-to-introduce-tax-incentives-for-crypto-miners
The Commercial Digital Asset Mining Act of 2022, sponsored by state senator John Montgomery and state representative Ryan Martinez, aims to reduce the expenditures related to hardware and electricity used by commercial mining operations.
"The original intent of the Legislature that the Oklahoma Tax Code recognize the continuing development of new and advanced manufacturing and industrial processing technologies has led to new industrial processes," the bill states. "Blockchain technology used in the commercial mining of digital assets is an industrial process that should be taxed in a manner similar to historical forms of manufacturing or industrial processing in order to encourage the location and expansion of such operations in this state rather than in competing states."
A report by regional news outlet KOKH indicated that incentives worth a maximum of $5 million are being eyed, citing comments from Sen. Montgomery.
Public records show that the legislation cleared the Oklahoma Senate on March 22 in a 29-16 vote. The bill moved to the legislature's lower chamber on March 23 and was referred to its technology committee on March 30.
Oklahoma is among a growing crop of US states eyeing the expanding bitcoin mining sector. States like Illinois and Georgia are weighing similar measures, and Kentucky's government approved such tax incentives last year.
Meanwhile, New York lawmakers are pushing for restrictions on the state's mining sector, citing environmental concerns.
Source: https://www.coinshots.com/news/oklahoma-lawmakers-to-introduce-tax-incentives-for-crypto-miners
Jump to: