The New York State Assembly introduced Bill 9138, which proposes to tax PoW cryptocurrency mining companies based on electricity consumption.

the New York State Assembly introduced bill 9138 on Friday, which aims to tax cryptocurrency mining companies using the Proof of Work (PoW) model based on their electricity consumption, with a tax rate of 2 to 5 cents per kilowatt-hour. This bill is complementary to Senate bill S8518, with the goal of using the tax revenue for New York's energy affordability projects for middle and low-income families. The tax plan exempts companies with an annual electricity consumption of less than 2.25 million kilowatt-hours, while those exceeding this standard will be taxed at different rates. Mining facilities that operate entirely on renewable energy and are independent of the grid may be exempt. If this bill is passed, it will take effect on January 1, 2027, and currently both the Senate and the Assembly's related bills are still under committee review. This measure is similar to practices in Nordic countries such as Norway and Sweden, and while not a clear ban, it may make mining in New York unfeasible, leading to mining businesses relocating to states more friendly to cryptocurrencies.