Kentucky Governor Andy Beshear has signed a bill designed to encourage cryptocurrency miners to set up a business in the state.
The new law “provides sales and use tax exemptions for physical property directly used and electricity used for commercial mining of cryptocurrency” and changes the tax on the state’s gross revenue license to exempt electricity used for commercial mining is used or consumed by cryptocurrency. ”
A timeline of the bill shows that it was first presented to the state House of Representatives on January 8, passed by the state Senate earlier this month, and incorporated into law on March 25. It was approved by an overwhelming majority early on in March.
The law will go into effect July 1st and is perhaps the main indicator that the state is looking to attract more Bitcoin miners and related businesses into its jurisdiction. As bitcoin becomes increasingly disempowered by institutional and retail adoption, more states are likely to realize that they can benefit from attracting the industry. Kentucky sees its access to cheap electricity as a competitive advantage in this area.