Bill > S08518

This bill establishes an excise tax on digital asset mining operations that use proof-of-work authentication methods, targeting the high electricity consumption associated with cryptocurrency mining. The tax is structured as a tiered system based on annual electricity usage, with rates ranging from 0 to 5 cents per kilowatt-hour depending on total consumption: no tax is applied for the first 2.25 million kilowatt-hours, and the rate increases progressively for higher electricity consumption levels up to 20 million kilowatt-hours. The bill defines key terms like "blockchain," "digital asset," and "proof-of-work," and treats companies in a controlled group as a single entity for tax calculation purposes. Notably, the tax does not apply to electricity from renewable energy systems, and all collected taxes, interest, and penalties will be directed toward providing benefits to residential customers enrolled in energy affordability programs. The tax will take effect on January 1, 2027, and applies to all taxable years from that date forward, with the aim of mitigating the environmental impact of energy-intensive cryptocurrency mining while supporting low-income energy consumers.

Transportation and Infrastructure

https://www.nysenate.gov/legislation/bills/2025/S8518