Statement on the Reintroduction of a Proposed Crypto Mining Tax

March 12th, 2024

The Biden administration issued its FY2025 proposed budget and for the second year in a row it includes a digital asset mining energy excise tax. The president’s budget is a suggestion based on the administration’s priorities and serves as the kickoff for the federal appropriations process. Congress then issues budget resolutions and negotiates to develop legislation that reflects the actual values appropriated to agencies or taxes imposed.

In its budget, the administration has provided that the excise tax would be phased in over three years at a rate of 10 percent in the first year, 20 percent in the second, and 30 percent thereafter. It would apply to both firms that both own and lease compute, as well as those who are off-grid. While the proposal claims the tax would be effective for taxable years beginning after December 31, 2024, it does not exist within the tax code.

With the election later this year, the President’s budget may prove to be nothing more than wishful thinking.

How We See It

Let us be clear: this proposal is not about environmental concerns, it’s a misguided attempt to stifle an industry powered by renewable energy.

Introducing a punitive tax would drastically curtail Bitcoin miners' capacity to invest in clean energy initiatives, diminishing their role in pioneering sustainable technological innovations. At a time when innovation should be nurtured, the administration's stance threatens an industry vital for job creation, tax revenue, and clean energy initiatives.