Arkansas is making strides with the innovative Arkansas Data Centers Act of 2023, now approved by both the House of Representatives and Senate, and pending Governor Sarah Huckabee Sanders' signature. This cutting-edge legislation seeks to provide a robust framework for Bitcoin miners, shielding them from prejudiced regulations and taxes while guaranteeing parity with data centers.
Championed by Rep. Rick McClure and backed by Arkansas Senator Joshua Bryant (R), the bill rapidly found favor among state legislators. It highlights the economic importance of data centers, acknowledging their contributions to job creation, tax revenue, and overall economic value within local communities.
The legislation emphasizes that “Data centers, digital currency, and blockchain technology are legal in all fifty (50) states; and guidance for future industry growth is needed in Arkansas to protect Arkansans from fraudulent business practices.”
While requiring that crypto miners pay relevant taxes and government fees using recognized forms of currency and operate without burdening the public electricity grid, the bill also stipulates that the Arkansas government cannot enforce distinct requirements that differ from those applied to data centers.
In a bid to further bolster the burgeoning cryptocurrency mining sector, the legislation aims to protect individuals participating in home digital asset mining. This provision permits residents to employ a node for mining activities at their dwelling, adhering to applicable utility rules and rates.
Moreover, the bill clarifies that “a person that is engaged in home digital asset mining or that has a digital asset mining business shall not be considered a money transmitter under the Uniform Money Services Act.”
Arkansas' pioneering move stands in contrast to other states, such as Texas, where legislators are attempting to eliminate incentives for Bitcoin miners through Bill 1751. In November 2022, the State of New York approved a proof-of-work mining moratorium, effectively prohibiting cryptocurrency mining operations for two years.
At the federal level, crypto miners may soon encounter a 30% tax on their electricity costs if President Biden's budget proposal, introduced on March 9, comes into effect.
The legislation emphasizes that “Data centers, digital currency, and blockchain technology are legal in all fifty (50) states; and guidance for future industry growth is needed in Arkansas to protect Arkansans from fraudulent business practices.”
While requiring that crypto miners pay relevant taxes and government fees using recognized forms of currency and operate without burdening the public electricity grid, the bill also stipulates that the Arkansas government cannot enforce distinct requirements that differ from those applied to data centers.
In a bid to further bolster the burgeoning cryptocurrency mining sector, the legislation aims to protect individuals participating in home digital asset mining. This provision permits residents to employ a node for mining activities at their dwelling, adhering to applicable utility rules and rates.
Moreover, the bill clarifies that “a person that is engaged in home digital asset mining or that has a digital asset mining business shall not be considered a money transmitter under the Uniform Money Services Act.”
Arkansas' pioneering move stands in contrast to other states, such as Texas, where legislators are attempting to eliminate incentives for Bitcoin miners through Bill 1751. In November 2022, the State of New York approved a proof-of-work mining moratorium, effectively prohibiting cryptocurrency mining operations for two years.
At the federal level, crypto miners may soon encounter a 30% tax on their electricity costs if President Biden's budget proposal, introduced on March 9, comes into effect.
