California Assembly Bill 9138 Proposes Tiered Taxes on Crypto Mining

The proposed bills aim to impose a tiered consumption tax on proof-of-work crypto mining companies, with exemptions for renewable energy-powered facilities.

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Summary

The New York State Assembly has introduced Bill A9138 and Senate Bill S8518, proposing a tiered consumption tax on cryptocurrency mining companies using proof-of-work mechanisms. The tax would apply to companies using over 2.25 million kilowatt-hours per year, with rates between $0.02 and $0.05 per kilowatt-hour. The generated revenue would fund energy subsidy programs. Facilities powered by renewable or off-grid energy sources would be exempt. If approved, the law would take effect in January 2027.

Terms & Concepts
  • Proof-of-Work: A consensus mechanism used in blockchain networks where miners solve complex computational problems to validate transactions and create new blocks.
  • Tiered Consumption Tax: A tax system where the rate applied increases or decreases based on the amount of energy or resources consumed by a business or operation.
  • Renewable Energy Exemption: A policy that exempts companies or operations using renewable energy sources from certain taxes or regulations due to their environmental benefits.