Kentucky governor signs crypto mining tax, clean energy incentives into law

Kentucky's governor signed a pair of legislative bills focused on cryptocurrency mining incentives into law.

As previously reported by The Block, the bills in question were finalized and approved by state lawmakers earlier this month. One measure is focused on clean energy use incentives whereas the other provides tax breaks to mining operations. 

Kentucky Governor Andy Beshear signed the two bills on Thursday, March 25, according to public records. Both laws become effective on July 1.

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The laws represent the most tangible evidence to date that U.S. states are seeking to attract crypto miners, or companies that undertake the energy-intensive process of building network transaction blocks and minting new coins in the process. 

As previously reported by the Lexington Herald-Leader, a Kentucky-based news outlet, lawmakers sought hundreds of millions of dollars worth of tax breaks for technology firms and data center operators. The tax incentives for crypto miners fit into that broader process, having been first introduced in January. The energy bill, which supplements the state's existing framework for promoting clean energy use, was introduced in late February.

The developments come as publicly-traded mining companies continue to ramp up their operations and institutional investors place bets on the future of the mining space.