New York State senator proposes tax on crypto mining energy use

New York State Senator Liz Krueger introduced a measure connected Wednesday to enforce excise taxes connected vigor utilized by crypto mining companies operating facilities successful the state.

The proposed excise tax, which is not the archetypal legislative inaugural of its kind, volition beryllium levied successful tiers, with nary complaint for miners consuming 2.25 cardinal kilowatt-hours (kWh) oregon little per twelvemonth and a taxation of 2 cents per kWh for miners who devour 2.26 cardinal to 5 cardinal kWh annually.

Miners who devour betwixt 5 million-10 cardinal kWh per twelvemonth look a taxation of 3 cents per kWh; those utilizing up to 20 cardinal kWh volition beryllium charged 4 cents per kWh; and immoderate miner consuming implicit 20 cardinal kWh per twelvemonth volition beryllium charged a taxation of 5 cents per kWh.

First leafage of the mining vigor excise taxation measure introduced by New York State Sen. Liz Krueger. Source: New York Senate

The connection exempts miners utilizing 100% renewable energy; cleanable vigor miners were allowed to run successful New York nether the two-year mining ban moratorium, signed by Governor Kathy Hochul successful 2022, which expired successful 2024.

Crypto mining is simply a highly competitory concern with constrictive nett margins. Imposing an vigor taxation further erodes those margins and could thrust miners reliant connected grid energy retired of the Empire State and to jurisdictions without the added expense.

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Electricity outgo is simply a substance of beingness oregon decease successful the mining industry

Mining companies that person the resources to unafraid land, physique facilities, and make the infrastructure required to harness renewable vigor resources successful distant locations, mitigate oregon sidestep the adaptable outgo of energy, a captious input for mining. 

This gives these companies a competitory vantage implicit smaller miners and ample players that tap into electrical grid energy metered astatine retail prices.

The median outgo of mining a azygous BTC surged successful Q1 2025. Source: TheMinerMag

The median outgo of mining a azygous Bitcoin (BTC) crossed $70,000 successful Q2 2025, amid rising mining trouble and web hashrate, according to TheMinerMag.

Energy prices successful the archetypal 4th of 2025 roseate to astir $0.08 per kWh, doubling costs comparative to gross for TeraWulf, a mining institution with a installation successful upstate New York, causing it to record a nonaccomplishment of $61.4 million during the period.

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