Overview

• State Senators Liz Krueger and Andrew Gounardes introduced S8518 to tax proof-of-work mining based on annual electricity consumption.
• The measure proposes brackets from a full exemption below 2.25 million kWh to $0.05 per kWh for usage above 20 million kWh.
• Facilities powered entirely by renewable energy, as defined under New York law, would be exempt from the tax.
• All revenue would be directed to Energy Affordability Programs that assist low- and moderate-income utility customers.
• Supporters cite studies linking mining to higher statewide electricity costs, while industry reporting warns the tax could pressure grid-reliant operators and push smaller miners to relocate; the bill has only been introduced and still requires full legislative approval.