The bill, which has been introduced in the state Legislature, would provide sales and use tax exemptions on personal property and electricity used in commercial mining of cryptocurrency with incentives focused on energy.
(TNS) — Two Kentucky legislators — House Majority Leader
The bill would exempt "commercial cryptocurrency miners" from paying 6% sales taxes or 6% excise taxes on their rigs' electric bills and mining equipment."
The bill is good news for
She added, "I think with the possible tax incentive more will use it for sure."
Investopedia says, "Bitcoin mining is performed by high-powered computers that solve complex computational math problems. These problems are so complex that they cannot be solved by hand and are complicated enough to tax even incredibly powerful computers."
It adds, "When computers solve these complex math problems on the bitcoin network, they produce new bitcoin (not unlike when a mining operation extracts gold from the ground)."
The bill's preamble says "the Commonwealth 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."
He said the value of each coin has gone from $18,000 to $42,000 in the past month.
So, how do you buy a cup of coffee with a $42,000 coin?
"It breaks up into small pieces called a satoshi,"
He said, "There is only 21 million (coins) that will ever be mined, so supply and demand is breaking ridiculous records and outperforming gold. It passed up Facebook on Top 10 most valuable assets in the world with a market cap of $766 billion. It's the buzz of the world at the moment."
House Bill 230 says, "The increased use of blockchain technology in a variety of applications and processes has led to significant innovation, developments, and modernization in multiple industries throughout the world and access to cost-effective energy is critical to the development and growth of blockchain technology, particularly in the commercial mining of cryptocurrency which requires a substantial and constant supply of energy."
It adds, "
The bill was in committee on Tuesday.
(c)2021 the Messenger-Inquirer (Owensboro, Ky.). Distributed by Tribune Content Agency, LLC.
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