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A senator in the state of Kentucky has said that incentives aimed at clean energy facilities should be extended to cover eligible block reward mining firms, in a move that could help improve the environmental impact of digital currency mining.

Senator Brandon Smith brought forward the measures in a bill submitted to the state Senate earlier this month, which would work by amending the Energy Independence Act, which has been in force in the state since 2007.

At the time, the bill was introduced to reward organizations with buildings and other facilities that met energy efficiency standards, in order to encourage clean energy in the state.

The amendments proposed by Sen. Smith would extend the incentives to “cryptocurrency facilities with a minimum capital investment of one million dollars” that were running block reward mining operations in Kentucky. On Wednesday, the Budget Committee for the state House of Representatives voted 19-2, approving Smith’s measure, the Lexington Herald-Leader reported.

While there is no specification on which types of block reward mining would be covered by the measures, the laws would apply to those that met the criteria of clean energy use for mining.

The new measures come alongside a host of other incentives brought in for the digital currency sector, as Kentucky aims to attract more business to the state.

A similar bill was presented to the lower house last month, offering a range of tax breaks for mining companies choosing to set up shop in the state.

The moves come at a time of increasing interest in block reward mining from institutional investors, fueled in part by the rapid rise in digital currency prices in recent months. Yet with the mining process notoriously energy intensive, concerns have been raised about the need for a greater emphasis on renewable energy in the sector.

If approved, the latest incentives package would come into force from July 1, 2021.

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

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