New York Senator Introduces Crypto Mining Tax
The Senator of New York, Liz Krueger, introduced a legislative template on Wednesday to collect consumption taxes on energy that is operated by crypto mining companies in the state. This move aims to regulate the energy consumption of crypto mining operations in New York, which has been a topic of discussion in recent years.
The proposed consumption tax is tiered, with miners consuming 2.25 million kilowatt hours (kWh) or less per year exempt from the tax. Miners who consume between 2.26 million to 5 million kWh per year will be charged a tax of 2 cents per kWh. The tax rate increases to 3 cents per kWh for miners who consume between 5 million to 10 million kWh per year, and 4 cents per kWh for those who use up to 20 million kWh. Miners who consume over 20 million kWh per year will be charged a tax of 5 cents per kWh.
The proposal also includes an exemption for miners who use 100% renewable energy. This exemption is significant, as it allows miners who have invested in clean energy to operate in New York without incurring additional costs. In fact, miners with clean energy were allowed to operate in New York during the two-year mining ban, which was signed by Governor Kathy Hochul in 2022 and expired in 2024.
Impact on the Crypto Mining Industry
Crypto mining is a competitive business with tight profit margins. The introduction of an energy tax could undermine these margins and drive miners out of the state. Electricity costs are a critical input for mining, and companies that can secure access to renewable energy resources at remote locations have a competitive advantage over smaller miners and large actors who enter into electro-nuclear energy at retail prices.
According to recent data, the median cost of mining a single Bitcoin (BTC) rose to around $70,000 in the second quarter of 2025, amid rising mining and network hash rates. Energy prices also increased, with the cost of electricity rising to around $0.08 per kWh in the first quarter of 2025. This has resulted in significant losses for some mining companies, including Terawulf, which recorded a loss of $61.4 million in the reporting period.
Regulatory Environment
The introduction of the crypto mining tax in New York is part of a broader regulatory environment that is evolving to address the energy consumption of crypto mining operations. As the crypto industry continues to grow, it is likely that we will see more regulatory measures aimed at mitigating the environmental impact of crypto mining. For more information on this topic, please visit https://cointelegraph.com/news/new-york-senator-introduces-crypto-mining-tax?utm_source=rss_feed&utm_medium=rss_tag_blockchain&utm_campaign=rss_partner_inbound
