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Kentucky senator wants green incentives to include crypto mining firms. - Coinnounce

source-logo  coinnounce.com 05 March 2021 02:48, UTC

Kentucky senator Brandon Smith has said that incentives aimed at clean energy facilities should be extended to cover eligible block reward mining firms in a move that could help improve the environmental impact of digital currency mining. The senator brought forward the measures in a bill submitted to the state Senate earlier this month, which would work by amending the Energy Independence Act, which has been in force in the state since 2007. 

The senator proposes to include crypto mining firms in green incentives. 

The amendments proposed by the Kentucky senator would extend the incentives to “cryptocurrency mining facilities with a minimum capital investment of one million dollars” that were running block reward mining operations in Kentucky. On Wednesday, the Budget Committee for the state House of Representatives voted 19-2, approving Smith’s measure, the Lexington Herald-Leader reported. There is no specification on which the measures would cover types of crypto mining, but the laws would apply to those that met the criteria of clean energy use for mining.

Kentucky proposes more measures to attract crypto firms. 

The new measures in Kentucky come alongside a host of other incentives brought in for the digital currency sector, as the US state aims to attract more business. A similar bill was presented to the lower house last month, offering a range of tax relaxations for crypto mining companies choosing to set up shop in the state. The moves come at a time of increasing interest in cryptocurrency mining from institutional investors, fueled in part by the recent rapid rise in crypto prices. With the mining process notoriously energy-intensive, concerns have been raised about the need for a greater emphasis on renewable energy in the sector.