With the crypto industry gaining traction across the globe, several regions have started to scrutinize the market. Kentucky, however, is trying to attract more crypto activity in the country by offering tax breaks.
Bitcoin and other cryptocurrencies have been surging in terms of price. Bitcoin rose close to a high of $60K. This seemed to have attracted an array of people into the industry which further elevated the activity of the miners while making the rewards they get more valuable. As several regions have been pouring in their funds into crypto mining, Kentucky seems to be jumping on the bandwagon.
Kentucky To Steer Towards Crypto Mining
In a recent report, it was revealed that the lawmakers in Kentucky were looking to spruce up the adoption rate of crypto in the region. A bill was reportedly given a green signal by the government for eliminating the tax on electricity used for crypto mining by the local operators.
The summary of the bill read,
“Create new section of KRS 139 which defines various terms relating to commercial mining of cryptocurrency using blockchain technology, provides sales and use tax exemptions on the tangible personal property directly used and the electricity used in commercial mining of cryptocurrency as of the date of approved application, provides for a four year sunset from July 1, 2021 to June 30, 2025, and requires the amount of the exemption to be reported by the Department of Revenue beginning on January 1, 2022 and every January 1 thereafter;”
A whopping $1 million a year was noted as the bill’s fiscal noted to the General Fund.
Crypto mining isn’t an easy process, noted Representative Steven Rudy. He pointed out that it wasn’t the job of people “sitting in their mom’s basement” whereas, the process is extremely “sophisticated” as well as technical.
An array of US states have been exhibiting interest in crypto. Miami was seen taking a plunge into the industry while several others followed. Kentucky seemed to be joining this list.