US President Proposes 30% Tax on Crypto Mining Power Usage

The United States President, Joe Biden, has proposed a phased-in 30% tax on cryptocurrency mining electricity costs in his administration’s 2024 fiscal year budget.

According to a supplementary budget explainer paper released by the Department of the Treasury on March 9th, any company using resources, whether owned or rented, would be required to pay an excise tax equivalent to 30% of the costs of electricity used in digital asset mining.

The tax would be implemented in taxable years after December 31, 2023, and would be phased in over three years at a rate of 10% per year, reaching a maximum of 30% by the third year. Crypto miners would be obligated to report the amount, type, and value of electricity used. Even if miners acquire their electricity off-grid, they would still be subject to the tax and must calculate the electricity costs generated by any electricity-generating plant.