Oklahoma joins expanded group of US states considering tax incentives for bitcoin miners
Oklahoma lawmakers have in recent days advanced legislation that, if finalized, would extend tax relief to bitcoin and cryptocurrency miners moving into the state.
The Commercial Digital Asset Mining Act of 2022, sponsored by State Senator John Montgomery and State Representative Ryan Martinez, aims to reduce the expense of equipment and electricity used in commercial mining operations.
“The legislature’s original intent that Oklahoma’s tax code recognize[s] the continuous development of new and advanced manufacturing and industrial processing technologies has led to new industrial processes,” the bill states. “Blockchain technology used in the commercial exploitation of digital assets is an industrial process that should be taxed the same as legacy forms. manufacturing or industrial processing to encourage the location and expansion of such operations in that state rather than in competing states. »
A report by regional news outlet KOKH said incentives worth up to $5 million are being considered, citing Senator Montgomery’s comments.
Public records show the legislation was approved by the Oklahoma Senate on March 22 in a 29-16 vote. The bill was transferred to the lower house of the legislature on March 23 and returned to its technology committee on March 30.
Oklahoma is among a growing number of US states that are eyeing the expansion of the bitcoin mining sector. States like Illinois and Georgia are considering similar measures, and the Kentucky government approved such tax incentives last year.
Meanwhile, New York lawmakers are pushing for restrictions on the state’s mining sector, citing environmental concerns.