Oklahoma Politicians Planning Tax Breaks for Crypto Miners

Oklahoma lawmakers have been making moves lately on a new bill that could give tax breaks to bitcoin and crypto miners looking to set up in the state. This proposed legislation, called the Commercial Digital Asset Mining Act of 2022, is backed by Senator John Montgomery and Representative Ryan Martinez. It aims to cut costs related to hardware and electricity for commercial mining operations. The bill mentions that the Oklahoma Tax Code should recognize the growth of new manufacturing and industrial tech, which has led to innovative processes. It argues that blockchain tech used in digital asset mining is an industrial process and should be taxed similarly to traditional manufacturing to attract and grow these operations in Oklahoma instead of other states. According to a report from KOKH, they’re considering incentives that could reach up to $5 million, based on comments from Senator Montgomery. Official records reveal that the Oklahoma Senate passed this bill on March 22 with a 29-16 vote. It then moved to the lower chamber on March 23 and was sent to the technology committee on March 30. Oklahoma is joining a trend among US states looking at the booming bitcoin mining industry. Other states like Illinois and Georgia are considering similar initiatives, and Kentucky already gave the green light for such tax breaks last year.

Stupid Zoo York 'lawmakers' (read: clowns) have no idea that mining farms STABILIZE the power grid by consuming RENEWABLE hydro energy that would otherwise be wasted. Even better, large mining farms can be switched off on command during peak power usage! It's extremely expensive to transmit the cheap Niagara power 400 miles away to NYC/Long Island, so what else will NY do with it??. They have NO understanding of crypto mining. I read the fine print of the bill. It requires an investment of at least $50k, and even then, you only get 1% of the cost back as a tax credit. There are extra credits for hiring employees, but let's be honest, only really large farms can do that. The final benefit is sales tax exemption for all equipment involved in mining and on the electricity, which saves at least 4.5%. Overall, it looks like a 5.5% initial benefit and a 4.5% ongoing benefit to me. It's probably better for me to set up shop in TX than OK considering the cheaper power and the fact that I can get nowhere near that big now. Miners can already defer sales tax for up to 1 year in most U.S. states with a reseller certificate anyway, according to my accountant.

How do you see this affecting small to medium miners? People with say ten to twenty 100Th ASICS?