The New York State Legislature has introduced Bill 9138, which proposes to tax PoW-based cryptocurrency mining companies based on electricity consumption

The New York State Legislature introduced Bill 9138 on Friday, which aims to tax cryptocurrency mining companies using proof-of-work (PoW) models such as bitcoin at 2 to 5 cents per kilowatt-hour based on electricity consumption. The bill echoes the Senate's S8518 bill, which aims to invest the tax in New York's energy affordability program for low- and middle-income households. The tax plan exempts businesses that consume less than 2.25 million kilowatt-hours of electricity per year, and taxes on different layers beyond this standard. At the same time, mining facilities that use entirely renewable energy and operate independently of the grid are exempt. The bill, if passed, would take effect on January 1, 2027, and is currently under committee consideration in both the Senate and House of Representatives. This move is similar to the practice of Nordic countries such as Norway and Sweden. Although it is not an explicit ban, it could make mining unfeasible in New York and lead to mining operations moving to more crypto-friendly states.