Oklahoma has introduced new tax advantages for cryptocurrency miners

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Oklahoma has cheaper power, lesser taxes, and a hospitable local government, something that is found very useful by the local cryptocurrency miners.

The Mining Sector Thrives In Oklahoma

The mining sector is thriving and won’t be going away soon, according to Republican Senator John Montgomery. This, he told the Senate, is why Oklahoma wants to attract as many of those enterprises as possible. This would be achieved via a variety of tax breaks for mining corporations. The incentives would be worth no more than $5 million, according to Sen. Montgomery’s working committee.

Some senators questioned the efficiency of the incentives, claiming that they wouldn’t boost state and local services and initiatives.

With a growing industry it’s exciting, but we’ve got to make sure that we don’t miss the opportunity to invest back into our state from that growth industry

Senator Julia Kirt

Montgomery’s crypto-supportive stance, on the other hand, has already shown to be beneficial to the state.

Cryptocurrency Miners are not only Individuals

Northern Data, a German technology firm, announced in March that it will locate its North American headquarters in Pryor, Oklahoma. The data business will create a 100-acre facility at the MidAmerica Industrial Park and recruit more than 150 workers in the coming months as part of the $270 million investment.

The firm will start with bitcoin mining before expanding into other “new technology sectors,” such as data centers, cloud services, and data processing research laboratories. The campus is planned to be operational in 24 months and will continue to grow in the future, adding additional staff.

The Grand River Dam Authority, a state-owned utility that delivers low-cost, dependable electricity to municipalities and business users, will supply Northern Data with up to 250 megawatts of power to operate the massive operation. Having a corporation the scale of Northern Data establish roots in Oklahoma will very certainly encourage other businesses to do the same, regardless of tax incentives.

The incentives would allow enterprises to deduct their investment in a mining facility or increase the number of full-time workers in an existing mining operation from the state’s tax. A corporation must spend at least $40 million in a “qualifying depreciable property” over three years to qualify for a tax credit.

The Oklahoma Senate approved Mongtomery’s bill on March 22nd, and it was sent to the legislature’s lower house on March 23rd. The Senate’s standing committee report on the bill was released earlier that month, recommending that the legislation be passed as revised, and the bill is likely to be changed in the following weeks.