Democrats in New York are proposing a companion bill that focuses on Proof-of-Work mining

Lawmakers in New York launched a legislative strike against crypto mining Companion legislation was introduced Friday to a Senate bill that would enforce this proof-of-work miners pay high taxes based on their electricity consumption.

On Friday, Assembly Bill A9138 was introduced in the New York State Assembly by Democratic Assemblymember Anna Kelles and referred to the Ways & Means Committee.

The bill would impose an excise tax on electricity used by companies engaged in mining digital assets under proof-of-work authentication methods.

This measure complements the S8518 bill, introduced earlier this month by Senator Liz Krueger, Chair of the Senate Finance Committee, in the New York State Senate.

Both bills pursue identical goals, as they require crypto mining companies to pay into New York’s Energy Affordability Programs based on their electricity consumption.

Operations that use up to 2.25 million kilowatt hours annually would generate no revenue under the bill.

The rate jumps to 2 cents per kWh for consumption of more than 2.25 million to 5 million kWh per year, 3 cents per kWh for more than 5 million to 10 million kWh, 4 cents per kWh for more than 10 million to 20 million kWh, and increases to 5 cents per kWh for consumption of more than 20 million kWh per year.

“The bill ensures that the companies that raise electricity rates in New York pay their fair share, while providing direct relief to families struggling with rising energy costs,” Senator Krueger said in a statement when S8518 was introduced.

Mining facilities that are powered entirely by renewable energy systems and operate off-grid would avoid the tax, a provision intended to encourage sustainable practices within the digital asset sector, according to A9138.

All taxes, interest and penalties collected would flow directly to the energy affordability programs, which are administered by the Department of Public Services, in consultation with the Energy Affordability Policy Working Group.

Making mining “unviable”.

If passed, the tax would go into effect on January 1, 2027 and apply to all tax years thereafter. Both the Senate and Assembly versions remain in committee.

The move is similar to that of Northern European countries such as Norway and Sweden, said Nic Puckrin, crypto analyst and co-founder of The Coin Bureau. Declutter. While these were not explicit bans, he said, “the loss of previous benefits essentially made mining unviable.”

“Maybe we’ll see the same thing happen here, and the outcome will be the same,” Puckrin added. ‘The irony is that these types of measures don’t often lead to cleaner practices; they are just pushing mining operations out of the state.”

When asked whether mining operations would simply move to more crypto-friendly states, Puckrin said that would be “the obvious answer,” as moving will be easier and cheaper than “trying to comply with punitive regulations, and there are still many much friendlier options within the US.”