Two Kentucky lawmakers – House Majority Leader Steven Rudy, a Republican from Paducah, and Rep. Chris Freeland, a Republican from Benton – have tabled a bill that “gives tax exemptions on physical property and electricity used in commercial mining provides the cryptocurrency “with incentives that focus on energy consumption.
The bill would exempt “commercial cryptocurrency miners” from paying 6% sales tax or 6% excise tax on their facilities’ utility bills and mining equipment. “
The bill is good news for The Creme Coffee House & Bakery, which has been accepting cryptocurrency for three years.
“Honestly,” said Brooklyn Patterson, the owner, “not very many people use it.” I haven’t let anyone use it since I acquired it in May. However, it’s still pretty new and not many people know much about it. I think as more information comes out and more people understand it, they will use it. “
She added, “I think with the potential tax incentive, more will surely use it.”
Investopedia says, “Bitcoin mining is done by powerful computers that solve complex math problems. These problems are so complex that they cannot be solved manually and are complicated enough to tax even incredibly powerful computers. “
It adds, “When computers solve these complex math problems on the Bitcoin network, they produce new Bitcoin (similar to what happens when a mining company digs gold out of the ground).”
The preamble to the bill states: “The Commonwealth has the opportunity to become a national leader in the emerging industry of commercial cryptocurrency mining because of its abundant power that can be delivered at lower rates than most states.”
Patterson’s father, Adam Carston Patterson, who owns the building where the cafe is located, said cryptocurrency is “the future of money. PayPal has just bought in and the institutes are currently trying to buy everything up. “
He said the value of each coin rose from $ 18,000 to $ 42,000 in the past month.
And Adam Patterson said, “JP Morgan Chase predicts it will be $ 146,000 a coin by the end of 2021.”
How do you buy a cup of coffee with a $ 42,000 coin?
“It breaks down into little pieces called satoshi,” said Adam Patterson. “It’s like having a $ 42,000 bank card or gift card that can go up or down in value until it stabilizes. You spend it while you go. “
He said, “There are only 21 million (coins) ever mined. So supply and demand break ridiculous records and outperform gold. With a market capitalization of $ 766 billion, Facebook was ranked as one of the top ten most valuable assets in the world. It’s the goings-on of the world right now. “
House Bill 230 states: “The increased use of blockchain technology in a wide variety of applications and processes has resulted in significant innovations, developments and modernizations in various industries around the world. Access to inexpensive energy is critical to the development and growth of blockchain technology, especially in the commercial mining of cryptocurrency, which requires a significant and constant supply of energy. “
It adds, “Kentucky Tax Act must and must recognize that the continued development of new and advanced manufacturing and industrial processing technologies has resulted in new industrial processes such as: B. Blockchain for the commercial mining of cryptocurrency that should and must be taxed in ways similar to historical forms of manufacturing or industrial processing in order to further promote the location and expansion of such operations in the Commonwealth rather than in other states also compete for such companies. “
The bill was in committee on Tuesday.