Five members of the Georgia House of Representatives have introduced a bill that would exempt local cryptocurrency miners from paying sales and use tax.
On Monday, Georgia Representatives Don Parsons, Todd Jones, Katie Dempsey, Heath Clark and Kasey Carpenter introduced HB 1342, which is yet to be titled. The legislation proposes to amend the state’s tax code “to exempt the sale or use of electricity used in commercial mining of digital assets” and would likely only apply to commercial miners operating out of a facility of at least 75,000 square feet – approximately 6,968 square meters.
The proposed bill is the latest in a series of state-level measures intended to encourage crypto miners to settle. In January, Illinois lawmakers introduced a bill that would expand tax incentives for data centers dedicated to cryptocurrency mining. Kentucky proposed similar legislation in March 2021.
Electricity costs remain a major factor for crypto companies looking to expand their operations in the United States and beyond. Canadian Bitcoin (BTC) mining company Bitfarms announced in November that it planned to build its first data center in Washington state, citing its “profitable electricity” and production rates. Texas has also welcomed a number of businesses following China’s mining crackdown, possibly due to the state’s unregulated power grid and renewable energy sources.
Georgia is expected to have 56,000 Bitmain miners operating in the state by October as part of a deal with the mining firm, ISW Holdings, and Bit5iv. Additionally, the state legislature passed a bill in March 2021 asking education officials to put in place a high school curriculum based on financial literacy that includes cryptocurrencies.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.