On Wednesday, senator of the state of Modern York Liz Krueger introduced a bill on the imposition of excise taxes to energy used by operating facilities of cryptocurrency mining companies in the state.
. proposed Excise tax, which is not the first legislative initiative of this kind, will be imposed on levels, without fees for miners consuming 2.25 million kilowatt hours (kWh) or less annually and a tax of 2 cents per kWh for miners who consume 2.26 million to 5 million kWh per year.
Miners who consume from 5 million to 01 million kWh per year are in the face of a tax of 3 cents per kWh; People using up to 20 million kWh will be charged 4 centers per kWh; And each miner consuming over 20 million kWh per year will be charged with a tax of 5 cents per kWh.
The proposal releases miners using 100% renewable energy; Pure energy miners could operate in Modern York as part of two years of extraction prohibition Moralium, signed by Governor Kathy Hochul in 2022, which expired in 2024.
Krypto Mining is a highly competitive business with narrow profit margins. The imposition of energy tax additionally irritates these margins and can lead miners dependent on electricity from Empire State and to jurisdiction without an additional cost.
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The cost of electricity is a matter of life or death in the mining industry
Mining companies that have resources for land protection, building facilities and developing infrastructure required to apply renewable energy resources in distant locations, alleviating or bypassing a variable energy cost, which is a critical contribution to mining.
This gives these companies a competitive advantage over smaller miners and gigantic players who apply the energy of the electrical network at retail prices.
The median costs of bringing out a single bitcoin (BTC) exceeded USD 70,000 in Q2 2025, among the growing difficulties in extracting and network hashrate, in accordance with TheMinermag.
Energy prices in the first quarter of 2025 increased to around 0.08 USD per kWh, doubling the costs in relation to the revenues for Terawulf, a mining company with a facility in Modern York, which means that during this period it records a loss of USD 61.4 million.
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