New York Senator Proposes Crypto Tax on Energy Use by Miners

TLDR

• New York State Senator Liz Krueger has introduced a bill to impose a tax on crypto energy consumption by mining companies.
• The proposed tax will be levied in tiers based on annual energy usage, with miners using more power paying higher rates.
• Miners consuming up to 2.25 million kWh annually will be exempt from the tax.
• The bill includes exemptions for miners using 100% renewable energy.
• The proposed tax could impact smaller miners relying on grid electricity due to rising energy costs.

New York State Senator Liz Krueger introduced a bill on Wednesday to impose an excise tax on energy consumption by crypto mining companies in the state. This proposal, aimed at regulating crypto mining, adds another layer to existing legislation. The bill will charge miners based on the amount of electricity they use annually.

New York Proposes Tiered Crypto Tax Rates

The crypto tax will apply in tiers, with miners consuming less than 2.25 million kilowatt-hours (kWh) exempt from the tax. Miners who use between 2.26 million and 5 million kWh annually will pay a tax of 2 cents per kWh. Those using between 5 million and 10 million kWh will face a tax of 3 cents per kWh.

Crypto miners consuming up to 20 million kWh will pay $0.04 per kWh, while those using more than 20 million kWh will pay $0.05 per kWh. The proposal also includes an exemption for miners who use 100% renewable energy. This exclusion stems from a two-year mining moratorium on clean energy miners, which expired in 2024.

TeraWulf Struggles With Rising Energy Costs

Crypto mining is a highly competitive business with thin profit margins. The crypto tax on energy consumption could further pressure miners relying on grid electricity, especially small operations. Larger miners with the resources to invest in renewable energy sources may gain a competitive advantage due to lower energy costs.

Miners, such as TeraWulf, facing high costs, are already feeling the effects of rising energy prices. In Q1 2025, the energy cost rose to approximately $0.08 per kWh, doubling the company’s costs. TeraWulf recorded a loss of $61.4 million during that period.

The tax proposal could further affect miners already struggling with high energy prices and tight margins. As a result, the crypto tax may prompt some mining companies to reconsider their operations in New York.

The post New York Senator Proposes Crypto Tax on Energy Use by Miners appeared first on Blockonomi.