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New York State Senator Liz Krueger introduced a bill on Wednesday to impose excise taxes on energy used by crypto mining companies operating facilities in the state.
The <a href="https://www.nysenate.gov/legislation/bills/2025/S8518" rel="noopener noreferrer nofollow" target="_blank">proposed</a> excise tax, which is <a href="https://cointelegraph.com/news/is-biden-s-controversial-bitcoin-mining-tax-dead-or-set-to-rise-from-the-ashes" rel="noopener noreferrer nofollow">not the first legislative initiative of its kind</a>, will be levied in tiers, with no charge for miners consuming 2.25 million kilowatt-hours (kWh) or less per year and a tax of 2 cents per kWh for miners who consume 2.26 million to 5 million kWh annually.
Miners who consume between 5 million-10 million kWh per year face a tax of 3 cents per kWh; those using up to 20 million kWh will be charged 4 cents per kWh; and any miner consuming over 20 million kWh per year will be charged a tax of 5 cents per kWh.
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 <img alt="Mining, Taxes, Bitcoin Regulation, New York, Bitcoin Mining, New York State, Mining Pools, Home Mining" src="https://s3.cointelegraph.com/uploads/2025-10/0199a6b5-03b2-7f49-a3af-1af729988004" title="">
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 First page of mining energy excise tax bill introduced by New York State Senator Liz Krueger. Source: <a href="https://www.nysenate.gov/legislation/bills/2025/S8518" rel="noopener noreferrer nofollow" target="_blank">New York Senate</a>
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The proposal exempts miners using 100% renewable energy; clean energy miners were allowed to operate in New York under the two-year mining <a href="https://www.nysenate.gov/legislation/bills/2021/S6486" rel="noopener noreferrer nofollow" target="_blank">ban</a> moratorium, <a href="https://cointelegraph.com/news/new-york-governor-signs-pow-mining-moratorium-into-law" rel="noopener noreferrer nofollow">signed by Governor Kathy Hochul</a> in 2022, which expired in 2024.
Crypto mining is a highly competitive business with narrow profit margins. Imposing an energy tax further erodes those margins and could drive miners reliant on grid electricity out of the Empire State and to jurisdictions without the added expense.
Related: <a href="https://cointelegraph.com/news/abu-dhabi-agricultural-regulator-ban-farmland-crypto-mining" rel="noopener noreferrer nofollow">Abu Dhabi agricultural regulator bans use of farmland for crypto mining</a>
<h2 id="electricity-cost-is-a-matter-of-life-or-death-in-the-mining-industry">Electricity cost is a matter of life or death in the mining industry</h2>
Mining companies that have the resources to secure land, build facilities, and develop the infrastructure required to harness renewable energy resources in remote locations, mitigate or sidestep the variable cost of energy, a critical input for mining.&nbsp;
This gives these companies a competitive advantage over smaller miners and large players that <a href="https://cointelegraph.com/explained/bitcoin-miners-as-energy-buyers-explained" rel="noopener noreferrer nofollow">tap into electrical grid energy</a> metered at retail prices.
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 <img alt="Mining, Taxes, Bitcoin Regulation, New York, Bitcoin Mining, New York State, Mining Pools, Home Mining" src="https://s3.cointelegraph.com/uploads/2025-06/01977b75-ff9a-7a38-932d-46dff265a705" title="">
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 The median cost of mining a single BTC surged in Q1 2025. Source: <a href="https://theminermag.com/research/2025-06-16/bitcoin-mining-research-june" rel="noopener noreferrer nofollow" target="_blank">TheMinerMag</a>
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The median cost of mining a single Bitcoin (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) <a href="https://cointelegraph.com/news/bitcoin-production-cost-rises-energy-hashrate-increase-q2" rel="noopener noreferrer nofollow">crossed $70,000 in Q2 2025</a>, amid rising mining difficulty and network hashrate, according to <a href="https://theminermag.com/research/2025-06-16/bitcoin-mining-research-june" rel="noopener noreferrer nofollow" target="_blank">TheMinerMag</a>.
Energy prices in the first quarter of 2025 rose to about $0.08 per kWh, doubling costs relative to revenue for TeraWulf, a mining company with a facility in upstate New York, causing it to <a href="https://cointelegraph.com/news/terawulf-q1-loss-widens-amid-rising-costs-falling-revenue" rel="noopener noreferrer nofollow">record a loss of $61.4 million</a> during the period.
Magazine: <a href="https://cointelegraph.com/magazine/7-reasons-bitcoin-mining-terrible-business-idea-bit-digital/" rel="noopener noreferrer nofollow">7 reasons why Bitcoin mining is a terrible business idea</a>

New York State senator proposes tax on crypto mining energy use

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