With the undeniable growing influence of cryptocurrencies, lawmakers in Kentucky appear ready to tap into the burgeoning sector as they look to incentivize crypto mining activities. The lawmakers in the state, through a recently approved bill, have exempted commercial miners from paying a 6 percent sales tax and 6 percent excise tax on tangible personal property that are directly used in the process, including electricity used.
According to the lawmakers, the bill is aimed at incentivizing job creation and spurring the growth of the industry and it was passed by a 19-to-2 vote by a committee in the Kentucky’s assembly. It is expected that the bill would move to the state’s upper chamber for review.
Sponsors of the bill believe that Kentucky could capitalize on its low energy rates, and also its abundant supply of such energies to lure crypto miners to the state. According to them, this would take the state to the forefront of crypto mining activities in the United States.
Though some lawmakers expressed their reservations about the high energy consumption rate needed to operate an average crypto mining operation, the lure of new industries and the increased growth and publicity Bitcoin and other digital assets have enjoyed makes the bill an attractive option.
This latest development is a plus for the crypto industry as it shows that there is a growing acceptance that crypto mining activities have huge revenue potentials and could provide adequate job opportunities for the masses.