Legislators in Oklahoma Propose Tax Breaks for Bitcoin Miners

Legislators in Oklahoma Propose Tax Breaks for Bitcoin Miners

With the latest bill, the South Central region in the United States is looking to become an attractive destination for blockchain firms and investors.

From the time that President Joe Biden has signed the Executive Order on cryptocurrencies, the United States has started to move a lot faster in terms of blockchain technology adoption. According to a bill issued by the Oklahoma Senate, and supported by Senator John Montogomery and State Representative Ryan Martinez, Bitcoin miners might be exempt from some of the operational taxes to draw attention to the region:

"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."

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Likewise, by establishing the Commercial Digital Asset Mining Act of 2022, Bitcoin mining rigs and electricity would become much cheaper for commercial miners. The bill reads:

"The sale of machinery and equipment including but not limited to servers and computers, racks, power distribution units, cabling, switchgear, transformers, substations, software, network equipment, and electricity used for commercial mining of digital assets in a colocation facility shall be exempt from the tax imposed by Section 1350…"

North America, after the crypto blanket ban in China, has taken the title of the global crypto mining hub, with several blockchain firms seeing the potential in the region. Based on the report by a Canadian Bitcoin mining firm Hut 8, the company generated approximately CA$174M (~$140M) last year from mining operations and hosting services.

Dom Z. - Crypto Analyst

by Dom Z. - Crypto Analyst, BitDegree


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