Fintech: Southeast News

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Posted January 25, 2021

Two Kentucky lawmakers have submitted a bill to the state legislature, attempting to use tax incentives to draw mining operations for bitcoin and other cryptocurrencies to set up shop there.

This 13-page bill, submitted by State Representatives Chris Freeland and Steven Rudy, calls for Bitcoin miners to receive a tax exemption of 6 percent, applicable either to their sales tax or the excise taxes on their electric bills and mining equipment, but not both. It also goes into some detail about some of the specific cases where either of these exemptions may or may not apply. Submitted on January 8, 2021, the bill is still in the very first stages on the road to becoming law.

Citing previous resolutions passed by the General Assembly indicating that the state would investigate the economic potential of cryptocurrency and its related businesses, the bill claims that proactive measures must be taken to ensure that businesses try to set up shop and build a greater framework of blockchain infrastructure in Kentucky, rather than in other states competing for this sort of business.

The bill mentions several specific reasons that miners would be attracted to Kentucky, noting in particular the relatively low costs of electricity available there, thanks to natural petrochemical resources and hydroelectric power generated by the Tennessee Valley Authority.

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