Kentucky lawmakers want to provide tax breaks for local cryptocurrency miners.

Kentucky lawmakers on Tuesday approved several government tax breaks, including Bill 230, which removes a VAT on electricity purchased by local miners.

Kentucky lawmakers voted 19 to 2 in favor of the new measure, according to a Lexington Herald-Leader report. The financial note to the bill estimates that local budget expenditures are estimated at at least $ 1 million per year. Lawmakers said the exact cost has not yet been calculated because “it is not known how many companies may choose to locate here to take advantage of this exception.”

The sponsor of the bill allegedly encouraged KFC to attract more cryptocurrency mining companies by offering tax breaks on consumed electricity. Actor Stephen Ruddy emphasized that cryptocurrency as an industry needs government support.

“It takes a lot of power to expand cryptocurrencies. This greatly affects industrial processes. It’s not just a few who sit in their mother’s basement or their parents’ basement and write code. It is actually very difficult and technical ”.

Kentucky is trying to lure cryptocurrency into the state. In January 2021, Kentucky Department of Economic Development officials approved a tax deduction for Blockware Mining to open a digital mining operation in Paducah with a total investment of $ 28 million. The Kentucky Senate has also applied for its own bill for a tax reduction for cryptocurrency, Senate Bill 255.

Source: CoinTelegraph

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