Bitcoin, Business, Money, Currency, Cryptocurrency

Kentucky legislators unveil plan to attract block reward miners

Lawmakers in the state of Kentucky are weighing up proposals for new laws which would make the state a more attractive destination for block reward miners, according to reports.

Representatives Steven Rudy and Chris Freeland submitted a draft bill for consideration last week, which could see the state introduce measures designed to support block reward mining businesses to set up shop.

Among a package of incentives aimed specifically at the industry, the bill proposes “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,” as well as other measures designed to appeal to mining firms.

Known as “AN ACT relating to the taxation of the commercial mining of cryptocurrency,” the measures will also look to incentivize energy use, effectively creating a package of incentives for mining firms to choose to operate from the state.

In the preamble to the bill, the legislators noted that the measures could give Kentucky a competitive edge as a destination for new mining businesses.

“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, and its established infrastructure to provide such energy through the Tennessee Valley Authority and other electricity providers.”

The bill was first presented on January 8, and remains at an early stage of the legislative process. It will now proceed through the usual channels towards the statute books, pending approval from lawmakers in the state more broadly.

The move comes as BTC mining difficulty ratcheted up a further level. Coupled with a shortage of available mining hardware, conditions for professional miners are becoming increasingly challenging.

See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”

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