- New York State has introduced a bill to tax proof-of-work crypto miners based on electricity usage.
- The tax rate ranges from 2 to 5 cents per kilowatt-hour (kWh) for consumption above 2.25 million kWh annually.
- Mining operations powered entirely by renewable energy and off-grid are exempt from this tax.
- Revenue from the tax will support the state’s Energy Affordability Programs for low- and moderate-income households.
- The tax would start January 1, 2027, pending passage through the legislative process.
New York State lawmakers introduced Assembly Bill A9138, proposing a tax on electricity used by businesses engaged in proof-of-work digital-asset mining. The bill was referred to the Ways & Means Committee after its introduction on a Friday. This law aims to apply an excise tax on power consumption by crypto mining companies to address electricity cost impacts.
The legislation complements Senate Bill S8518, introduced earlier by the Chair of the Senate Finance Committee, Senator Liz Krueger. Both bills share the goal of requiring miners to contribute to New York’s Energy Affordability Programs through taxes based on their annual electricity use.
According to the bill, mining operations consuming up to 2.25 million kilowatt-hours (kWh) per year will not be taxed. Consumption between 2.25 million and 5 million kWh will be taxed at 2 cents per kWh. Rates increase to 3 cents for 5–10 million kWh, 4 cents for 10–20 million kWh, and reach a maximum of 5 cents per kWh for usage exceeding 20 million kWh annually. Assembly member Anna Kelles introduced the bill.
“The bill ensures that the companies driving up New Yorkers’ electricity rates pay their fair share, while providing direct relief to families struggling with rising utility costs,” Senator Krueger said when the Senate bill was unveiled.
Mining facilities that run fully on renewable energy and operate off the electrical grid are exempt from this tax. This exemption aims to promote sustainable energy practices within the cryptocurrency mining sector.
All revenue generated from this tax—including interest and penalties—will be allocated to energy affordability programs overseen by the Department of Public Service, in coordination with the Energy Affordability Policy Working Group.
The tax will take effect on January 1, 2027, if both the Senate and Assembly bills pass their respective committees. Observers note that similar policies in Northern European countries did not ban mining outright but made it economically challenging, often leading to mining relocation rather than cleaner practices.
Crypto analyst Nic Puckrin noted that such measures mostly push mining operations to other states with more favorable regulations. Puckrin said, “The obvious answer” would be for miners to move elsewhere, as complying with these regulations may be costlier than relocating.
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