New York State Legislature introduces Bill 9138, proposing to tax PoW-based cryptocurrency mining companies based on electricity consumption

Jinse Finance reported that the New York State Assembly introduced Bill No. 9138 on Friday, aiming to tax cryptocurrency mining enterprises using the proof-of-work (PoW) model, such as bitcoin, based on their electricity consumption, with a tax rate of 2 to 5 cents per kilowatt-hour. This bill echoes the Senate's S8518 bill, with the goal of investing the collected taxes into New York's energy affordability programs for low- and middle-income households. The tax plan exempts enterprises with annual electricity consumption below 2.25 million kilowatt-hours, while those exceeding this threshold will be taxed at different tiers. At the same time, mining facilities that operate entirely on renewable energy and are independent of the power grid may be exempted. If passed, this bill will take effect on January 1, 2027, and currently, related bills in both the House and Senate are still under committee review. This move is similar to the practices in Nordic countries such as Norway and Sweden. Although it is not an outright ban, it may make mining in New York unfeasible, potentially causing mining operations to relocate to states more friendly to cryptocurrency.