New York lawmakers have proposed an excise tax on proof-of-work crypto operations: Senate Bill S8518 would levy 2–5 cents per kWh on large Bitcoin miners, directing revenue to the state’s Energy Affordability Programs to offset higher utility bills for households and small businesses.
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Bill targets high-usage miners with tiered excise rates to fund energy assistance.
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Tax ranges: 2¢/kWh (2.25–5M kWh) to 5¢/kWh (above 20M kWh); sustainable-energy miners exempt.
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Research cited estimates $79M added annually for individuals and $165M for small businesses in statewide electricity costs.
New York Bitcoin miner tax proposed to fund energy aid; learn how the tiered excise works and who is exempt. Read the bill summary and implications now.
What is the New York Bitcoin miner tax proposal?
New York Bitcoin miner tax is a proposed excise on proof-of-work crypto mining under Senate Bill S8518 that charges miners 2¢–5¢ per kilowatt-hour based on consumption tiers and directs proceeds to Energy Affordability Programs to reduce bills for low- and moderate-income households.
How would the excise rates and tiers work?
Senate Bill S8518 sets tiered rates by annual consumption: miners using 2.25–5M kWh pay 2¢/kWh, 5–10M kWh pay 3¢/kWh, 10–20M kWh pay 4¢/kWh, and consumption above 20M kWh pays 5¢/kWh. Operations using verified sustainable energy are exempt, incentivizing cleaner power use while raising funds for utility relief.
Why are lawmakers proposing a tax on proof-of-work miners?
Lawmakers say high-power crypto mining increases statewide electricity demand and can push up utility costs for residents and small businesses. The bill references research estimating an additional $79 million annually in costs for individuals and $165 million for small businesses tied to cryptomining-related rate impacts.
What are the fiscal and policy implications?
The excise would create a direct revenue stream for energy assistance while encouraging miners to switch to sustainable power to avoid taxation. State regulators would need to implement measurement and verification protocols for energy consumption and renewable sourcing. The proposal follows New York’s historically stringent regulatory stance on crypto operations.
Frequently Asked Questions
How much would the tax cost a typical large mining operation?
Tax liability depends on annual kWh use. For example, a facility consuming 15 million kWh would face 4¢/kWh, resulting in $600,000 in excise payments annually under the proposed rates.
Will this bill affect AI or other high-performance computing centers?
The bill focuses on proof-of-work crypto mining and does not impose the excise directly on AI data centers. A bill release noted broader growth in high-power computing but did not include AI-specific levies in the current text.
Key Takeaways
- Tiered excise: Senate Bill S8518 proposes 2¢–5¢/kWh based on annual consumption brackets.
- Exemptions: Verified sustainable-energy mining operations would be exempt to encourage cleaner power.
- Revenue use: Proceeds would fund New York’s Energy Affordability Programs to reduce utility costs for vulnerable households.
Conclusion
New York’s proposed Bitcoin miner tax aims to make high-energy proof-of-work operations contribute to utility relief funds while promoting sustainable energy adoption. Stakeholders — from mining firms to state regulators — will watch for implementation details, verification standards, and the bill’s legislative progress. COINOTAG will monitor developments and update this report as the bill advances.
