Biden budget proposes 30% tax on crypto mining electricity usage

A phased-in 30% tax on cryptocurrency mining electricity costs has been proposed by United States president Joe Biden in his administration's 2024 fiscal year budget.

A Department of the Treasury supplementary budget explainer paper released Mar. 9 said any firm using resources — whether they be owned or rented — would be "subject to an excise tax equal to 30 percent of the costs of electricity used in digital asset mining."

One of the few surprises in the Biden budget. A proposed excise tax on electricity usage from crypto mining. Phasing in at 10% in year one and climbing to 30%. pic.twitter.com/UPgUdr8CeG

It proposed the tax would be implemented in the taxable years after Dec. 31, 2023, and would be phased in over three years at a rate of 10% a year, reaching the max 30% by the third year.

Related Biden wants to double capital gains and clamp down on crypto wash sales: Reports

Crypto miners would have reporting requirements on the "amount and type of electricity used as well as the value of that electricity."

Crypto miners who acquire their electricity needs off-grid would still be subject to the tax, and would be required to estimate the electricity costs generated by any "electricity generating plant."

This is a developing story, and further information will be added as it becomes available.

Source Link