Oklahoma joins a growing number of states in the United States considering tax incentives for bitcoin miners
Oklahoma lawmakers recently approved legislation that, if passed, would extend a tax benefit to bitcoin and cryptocurrency miners who establish operations in the state.
The Commercial Digital Asset Mining Act of 2022, introduced by state senator John Montgomery and state representative Ryan Martinez, intends to cut commercial mining enterprises’ expenses on hardware and power.
“The Legislature’s initial goal that the Oklahoma Tax Code acknowledges the continued development of sophisticated manufacturing and industrial processing technology has resulted in the creation of new industrial processes,” the measure notes. “Blockchain technology is an industrial process that should be taxed similarly to traditional manufacturing or industrial processing in order to promote the development and growth of such enterprises in this state rather than in rival jurisdictions.”
According to a report by regional news site KOKH, incentives of up to $5 million are being considered, citing Sen. Montgomery’s words.
According to public records, the Act passed the Oklahoma Senate on March 22 by a vote of 29-16. The measure was sent to the legislature’s lower chamber’s technology committee on March 30.
Oklahoma is one of a rising number of US states that are eyeing the burgeoning bitcoin mining industry. Illinois and Georgia are considering similar legislation, and Kentucky’s legislature passed such tax incentives last year.
Meanwhile, New York politicians are urging the state’s mining industry to be regulated, citing environmental concerns.