Oklahoma is set to become the latest state to amend its regulations to attract block reward miners even as the United States continues to dominate the industry. The state Senate passed a bill that seeks to cut down the taxes for the sector in a bid to attract miners who have previously preferred New York, Texas, and other states with enabling regulations and cheap power.
The Commercial Digital Asset Mining Act of 2022 was introduced to the Senate in March, sponsored by State Senator John Montgomery (R-Lawton) and Representative Ryan Martinez (R-Edmond). It aims to slash the taxes imposed on block reward miners and put them on par with other manufacturers and industrial processors.
“The original intent of the Legislature that the Oklahoma Tax Code recognize[s] the continuing development of new and advanced manufacturing and industrial processing technologies has led to new industrial processes,” it states.
In late March, the Senate advanced the bill by voting 29-16 in its favor. It then sent the bill to its lower chamber for deliberations and eventually a vote that would decide its future. Last week, the lower chamber, known as the House of Representatives, voted 64-18 in favor of the bill.
The bill clearly outlines that the tax breaks are specifically meant to attract new miners to the Sooner State.
“Blockchain technology used in the commercial mining of digital assets is an industrial process that should be taxed in a manner similar to historical forms of manufacturing or industrial processing in order to encourage the location and expansion of such operations in this state rather than in competing states,” it says.
According to Montgomery, who sponsored the bill, it’s time that Oklahoma recognize that digital currency block reward mining “is growing” and “it’s not going away any time soon,” local news outlet Fox 25 reports. He is eyeing tax incentives to the tune of $5 million for the miners.
Senator Julia Kirt (D-Oklahoma City) was one of the skeptics of the bill and urged her fellow senators to ensure that the miners invest in the state.
“I hope that we can look at the overall picture of what kind of incentives they will be receiving and if we can make sure there is still a direct benefit to state and local services and programs,” she stated.
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