Key Takeaways:
- Oklahoma is considering tax incentives for crypto miners of the state.
- A bill has been proposed by the state senator and the state representative.
- The aim is to reduce expenses in mining.
Oklahoma is one of the many states that is aiming to expand the bitcoin mining sector. One of the biggest concerns related to this industry is environmental damage. The regulators of New York are trying to impose restrictions on it for the same reason. However, the lawmakers of Oklahoma have progressed a regulation regarding tax breaks for owners of bitcoin and cryptocurrency mining within the state.
John Montgomery, the state senator, and Ryan Martinez, the state representative, are sponsoring The Commercial Digital Asset Mining Act of 2022. The primary focus of the act is to reduce expenses on hardware and electricity utilized during commercial mining operations and to raise incentives worth $5 million.
The bill states, “The original intent of the Legislature that the Oklahoma Tax Code recognize[s] the continuing development of new and advanced manufacturing and industrial processing technologies has led to new industrial processes. Blockchain technology used in the commercial mining of digital assets is an industrial process that should be taxed in a manner similar to historical forms of manufacturing or industrial processing in order to encourage the location and expansion of such operations in this state rather than in competing states.”
