New York bill would tax crypto mining electricity to fund energy aid

New York State Senator Liz Krueger on Wednesday introduced legislation that would impose a tiered excise tax on electricity used by proof-of-work cryptocurrency mining operations in the state, directing revenues to energy affordability programs for low- and moderate-income households. The measure, Senate Bill S.8518, targets energy-intensive Bitcoin and similar mining activity amid concerns about rising utility costs and grid impacts.

Under the proposal, facilities that consume 2.25 million kilowatt-hours or less annually would be exempt. Higher use would trigger graduated rates: 2 cents per kWh for 2.26 million to 5 million kWh; 3 cents for 5 million to 10 million kWh; 4 cents for 10 million to 20 million kWh; and 5 cents for consumption above 20 million kWh. The bill also would exempt operations that run entirely on renewable energy, a provision proponents say is intended to encourage cleaner power use in the sector. The two-year moratorium on nonrenewable-powered mining that allowed clean-energy miners to continue in New York expired in 2024.

Krueger and co-sponsors say the tax would help offset what they view as mining-related upward pressure on electricity bills. Krueger...