New York State Senator Liz Krueger has launched a invoice looking for to impose a tiered excise tax on electrical energy consumed by bitcoin mining operations.
The proposal targets large-scale miners, with charges growing primarily based on annual vitality utilization.
Particulars of the proposed tax
Underneath the invoice, miners utilizing as much as 2.25 million kilowatt-hours (kWh) per yr wouldn’t be taxed.
For these consuming 2.26 million to five million kWh yearly, a tax of two cents per kWh would apply.
Miners utilizing 5-10 million kWh would pay 3 cents per kWh, these as much as 20 million kWh would pay 4 cents, and operations exceeding 20 million kWh yearly would face the best fee at 5 cents per kWh.
Exemption for renewable vitality miners
Importantly, the invoice exempts mining operations powered solely by renewable vitality.
This follows New York’s earlier two-year mining moratorium, which allowed such clear vitality miners to proceed working.
The moratorium, signed by Governor Kathy Hochul in 2022, expired in 2024.
Impression on mining profitability
Bitcoin mining is already a aggressive enterprise with tight margins.
The introduction of extra vitality taxes may make it unviable for some companies, particularly these reliant on grid electrical energy.
Bigger corporations capable of construct infrastructure for renewables in distant areas might achieve a big benefit, whereas others may very well be pushed to relocate out of state.
Rising prices for miners
Latest knowledge exhibits that the median price of mining a single bitcoin surpassed $70,000 in Q2 2025, amid growing mining problem and community hashrate.
Vitality costs in early 2025 averaged $0.08 per kWh, which doubled the prices for miners like TeraWulf, resulting in a $61.4 million loss for the corporate in Q1 2025.
The aggressive panorama for miners in New York is prone to shift dramatically if the proposed tax is enacted, particularly for these unable to transition to renewable vitality sources.