Oklahoma lawmakers have recently approved legislation that, if passed, would provide a tax credit to bitcoin and cryptocurrency miners who set up shop in the state.
The Commercial Digital Asset Mining Act of 2022, introduced by state senator John Montgomery and state representative Ryan Martinez, intends to cut costs associated with commercial mining gear and power.
The bill claims that the Legislature’s initial objective was for the Oklahoma Tax Code to acknowledge the ongoing development of new and sophisticated manufacturing and industrial processing technology, which has resulted in new industrial processes.
The bill states:
“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.”
According to a report by regional news site KOKH, incentives of up to $5 million are being considered, citing statements from Sen. Montgomery.
According to public records, the bill passed the Oklahoma Senate 29-16 on March 22. On March 23, the bill was introduced in the lower house of the legislature, and on March 30, it was submitted to the legislature’s technology committee.
Oklahoma is one of an increasing number of states in the United States that are interested in the booming bitcoin mining industry. Illinois and Georgia are considering similar legislation, while Kentucky’s government approved tax breaks last year.
Meanwhile, New York legislators are pressing for environmental limits on the state’s mining industry.
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