Crypto mining firms based in the United States could be subject to a 30% tax on electricity costs under a new budget proposal aimed at reducing mining activity. According to a supplementary budget explainer paper by the Department of the Treasury, any firm using owned or rented mining rigs would be “subject to an excise tax equal to 30 percent of the costs of electricity used in digital asset mining.” Notably, the proposed tax would be implemented next year and phased in gradually over a period of three years at a rate of 10% a year, reaching the target 30% tax rate by the end of 2026. Crypto miners would also need to report the amount and type of electricity they use, as well as the value of that electricity. This means that even miners who use off-grid electricity for their operations would still need to pay taxes.
