Oklahoma lawmakers have recently advanced legislation. If finalized, the bitcoin and cryptocurrency miners that set up shop in the state will be offered tax breaks.
The Commercial Digital Asset Mining Act of 2022, proposed by state senator John Montgomery and state representative Ryan Martinez, intends to cut costs associated with hardware and electricity used by commercial mining operations.
The bill states – “the main aim of the legislature is that the Oklahoma Tax Code recognize(s) the continuing development of advanced and new manufacturing and industrial processing technologies has led to new industrial processing technologies has led to new industrial processes.”
In addition, the bill also mentioned that the blockchain technology used in the commercial mining of digital assets is an industrial process. Hence, it should be taxed in a manner similar to traditional methods of manufacturing or industrial processing. The aim is to encourage the location and expansion of such operations in this state rather than in competing states.
Reportedly, the offered incentives would be worth a maximum of $5 million, as per comments from Sen. Montgomery. According to public records, the legislation cleared the Oklahoma Senate on March 22. The bill further moved to the legislature’s lower chamber on March 23. Then, finally referred to its technology committee on March 30.
Oklahoma is among a growing list of US states considering expanding the bitcoin mining sector. Illinois and Georgia are among such states that are weighing similar measures, and Kentucky’s government approved such tax incentives last year.
US states are advancing their legislature to offer tax incentives for bitcoin and cryptocurrency miners. The initiative was anticipated as the US Congress had approved a $1.2 Trillion Infrastructure bill with crypto tax in 2021. There is still some ambiguity on how certain US states will take steps on reforming their legislature, considering New York lawmakers are pushing for restrictions on the state’s mining sector.
