Oklahoma Lures in Crypto Mining Companies Through Tax Legislations
2022.04.04 18:06
Oklahoma Lures in Crypto Mining Companies Through Tax Legislations
- Oklahoma legislators are looking to draw in crypto mining businesses through legislation.
- The legislation involves tax credits and incentives that would reduce the amount crypto mining companies would have to pay.
- However, some personalities in the state are still unsure about the effect of a new crypto mining industry due to its environmental effects and regulations.
Oklahoma legislators are aiming to draw in crypto mining businesses to the state through tax credits and incentives in Senate Bill 590. The state of Oklahoma has recently introduced legislation to provide tax incentives to Bitcoin and cryptocurrency miners in the state.
A few weeks ago, Oklahoma Governor Kevin Stitt announced a new crypto mining headquarters located in Pryor. Following that, Senator John Montgomery, alongside state representative Ryan Martinez, presented the “Commercial Digital Asset Mining Act of 2022” on the Senate floor.
Montgomery’s bill would result in a framework of incentives aiming to draw crypto mining businesses to Oklahoma. Furthermore, it spoke about the cap on tax credits and how much businesses can receive in incentives. The amount is yet to be determined, however, Montgomery is targeting incentives worth no more than $5M.
The latest Public records show that the legislation has been cleared by the Oklahoma Senate on March 22. The vote was 29-16. On March 23, the bill moved to the legislature’s lower chamber and was referred to the technology committee on March 30.
According to a survey by commodity.com, Oklahoma was one of the best states for cryptocurrency mining besides North Dakota and Tennessee. The researchers analyzed several factors such as State income tax burden, average internet speed, cost of living, electricity rates, etc.
Additionally, mining bitcoin takes around 2,000 kilowatt-hours of electricity. University of Oklahoma’s Chairman and Professor of Economics, Gregory Burge, said that this amount is roughly enough to run an average household for two to three months.
Burge adds, “The big thing about crypto mining: it is incredibly energy-intensive. It’s a very energy-intensive endeavor.”
At the same time, Yuri Hupka – a Graduate Research Assistant at Oklahoma State University – said that the bill won’t provide a large employment boom. A mining operation requires about 150 people. Furthermore, there is uncertainty about regulations and a big concern about how crypto mining affects the environment.
Hupka stated, “A lot of times they like to look at the price and the volatility, and the possibilities for the future, technically, the market possibilities and not much about the environment that we’re in, in terms of regulation.”
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