- Senate Bill S8518 proposes an excise tax on proof-of-work crypto miners in New York, scaled by electricity usage and exempting renewable energy users.
- Revenues would support Energy Affordability Programs, with lawmakers citing annual bill increases of US$79m for households and US$165m for small businesses.
- With Bitcoin mining costs above US$70,000, analysts warn the tax could render grid-based mining financially unsustainable.
New York legislators have unveiled a proposal to introduce a new tax on cryptocurrency mining operations, citing the industry’s high electricity consumption and its impact on household utility bills.
Senator Liz Krueger and Assemblymember Anna Kelles introduced Senate Bill S8518, which seeks to levy an excise tax on proof-of-work miners across the state. The funds raised would be allocated to New York’s Energy Affordability Programs, which provide assistance to low- and moderate-income households struggling with rising electricity prices.
The legislation outlines a tiered taxation structure. Mining facilities using between 2.25 and 5 million kilowatt-hours (kWh) annually would pay a rate of US$0.02 (AU$0.03) per kWh. Those consuming 5 to 10 million kWh would pay US$0.03 (AU$0.05), while facilities using up to 20 million kWh would be taxed US$0.04 (AU$0.06). Consumption exceeding 20 million kWh would attract the highest rate of US$0.05 (AU$0.08) per kWh.
Operations running entirely on renewable energy would be exempt from the charges, with lawmakers stating that the policy is intended to promote innovation and sustainability in the digital asset sector. Krueger noted that studies have demonstrated that mining facilities increase power bills across the state, adding around US$79 million (AU$119.8 million) each year in costs for households and US$165 million (AU$250 million) for small businesses.
Related: US Treasury Exempts Crypto From Unrealised Gains Tax in Major Industry Win
Energy Debate Continues
The proposal follows mounting concerns about the environmental and financial burden posed by energy-intensive mining practices such as those required to secure Bitcoin and Dogecoin networks. While artificial intelligence data centres consume even more electricity, the bill is directed specifically at proof-of-work crypto operations.
Industry analysts warn that the added taxation could make operations dependent on grid electricity financially unviable, particularly as the median cost of mining one Bitcoin reached more than US$70,000 (AU$106,085) in early 2025, far outstripping returns for some firms.
Related: Founders of Sydney-Headquartered IREN Cash Out $66M as Firm Becomes World’s Most Valuable Bitcoin Miner
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