Bill > A09138

This bill imposes a graduated excise tax on digital asset mining operations that use proof-of-work authentication methods, which involves high-energy computer systems solving complex mathematical puzzles to validate blockchain transactions. The tax is based on annual electricity consumption, with no tax applied for the first 2.25 million kilowatt-hours and progressively increasing rates for higher consumption levels (from 2 to 5 cents per kilowatt-hour for consumption over 20 million kilowatt-hours). Companies in a controlled group will be treated as a single entity for tax calculation purposes, and the tax will not apply to electricity from renewable energy systems. Importantly, all taxes, interest, and penalties collected will be specifically directed to support energy affordability programs for residential customers, helping low-income households manage their utility costs. The bill defines key technical terms like blockchain, digital assets, and proof-of-work mining, and provides detailed guidelines for implementation. The tax will take effect for taxable years beginning on or after January 1, 2027, giving businesses time to prepare for the new regulatory framework.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A9138