Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

More States Target Cryptocurrency Mining With Tax Incentives (1)

Feb. 2, 2022, 9:45 AMUpdated: Feb. 2, 2022, 4:38 PM

In a modern-day version of the California gold rush, digital currency enthusiasts are heading to state capitols seeking tax incentives that will attract investments in Bitcoin mining.

Following on tax abatement laws enacted in a few states in 2021, copycat bills are expected in others ripe for hosting the massive, energy-chugging facilities necessary for mining—the complicated process for validating transactions and issuing new digital tokens. Analysts said the legislative competition, driven in part by China’s ban on cryptocurrency mining last year, could get hot particularly in Arizona, Arkansas, Georgia, Minnesota, Nebraska, North Carolina, Oklahoma, Tennessee, and Texas.

“Cryptocurrencies weren’t on ...