Lawmakers in Kentucky are looking to impose tax breaks for local cryptocurrency miners.

Kentucky lawmakers on Tuesday approved several country tax breaks including House Bill 230, which would remove the sales revenue enhancement from electricity purchased by local crypto mining operators.

Co-ordinate to a report by the Lexington Herald-Leader, Kentucky legislators voted 19 to two for the new measure out. The beak's fiscal annotation is reportedly estimated to price the local budget at least $1 one thousand thousand annually. The exact cost cannot be calculated so far because "information technology is unknown how many of the businesses might choose to locate hither to avail themselves of this exemption," lawmakers said.

The bill's sponsor reportedly urged that Kentucky needs to attract more than cryptocurrency mining businesses by offering revenue enhancement breaks on consumed electricity. Representative Steven Rudy emphasized that cryptocurrency mining needs to be supported as an industry in the state.

"Mining for cryptocurrency takes a lot of electricity. It is very heavily impactful on industrial-blazon things. Information technology is not simply a few people sitting in their mom'due south basement or in their parents' basement writing code. This is actually highly sophisticated, highly technical," he said.

Kentucky has been attempting to attract crypto business organization to the state. In Jan 2021, Kentucky economical development officials approved taxation incentives for Blockware Mining to open up a crypto mining functioning in Paducah, with a total investment of $28 million. The Kentucky Senate has been also advancing its own tax break bill for cryptocurrency mining, Senate Bill 255.