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
— John Buhl (@jbuhl35) March 9, 2023
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.
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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.