Georgia’s new bill considers giving crypto miners tax exemptions

Reps Don Parsons, Todd Jones, Katie Dempsey, Heath Clark, and Kase Carpenter of Georgia introduced HB 1342, a bill with no title, on Monday. The bill would amend the state tax legislation “to exempt the sales or usage of electric power used in the commercial mining of digital assets” and would most likely only apply to commercial miners with a facility at least 75,000 square feet (6,968 square meters).

The step is the latest in a sequel of state-level moves geared at encouraging cryptocurrency miners to set up plants. Senators from Illinois introduced legislation in January that would provide tax advantages to crypto mining data centers. Kentucky filed similar legislation in March 2021.

This proposed law was first submitted with the Georgia General Assembly’s Clerk of the House. The bill is introduced to lawmakers in a “First Reading” on the first legislative day after it is filed. The bill is allocated to a committee, asking witnesses to speak on its behalf, including the author. The committee can amend the measure at any time. The committee will vote on the measure whenever it is ready, indicating “yes” or “no.” After the committee votes, the Georgia House of Representatives will hold a “Second Reading.” Then there’s a “Third Reading.” After the third reading, a bill is given to the chamber from which it originated, either the Senate or the House of Representatives.

The discussion then begins, with amendments being debated. The proposal receives a “yes” or “no” vote from each senator and congressman. Following that, the bill is sent to the governor for signing or veto. The new decrees are published in the Georgia Law series when the governor signs the measure.

Electricity costs affect crypto institutions

Electricity prices are still a significant factor for crypto firms looking to expand their operations in the United States and throughout the world. Bitfarms, a Bitcoin (BTC) mining company based in Canada, said in November that it would build its first data center in Washington State, quoting the state’s “cost-effective electricity” and production rates as factors. Texas has drawn a lot of enterprises following China’s mining crackdown, given to the state’s deregulated electricity infrastructure and renewable energy sources.

Georgia expects to have 56,000 Bitmain miners working in the state by October, according to a deal with mining companies ISW Holdings and Bit5iv. The proposed bill will be a handout for many firms as the initiative shows that the government tries to understand and help the miners.