In Illinois proposed to introduce tax incentives for miners

by in Cryptocurrency News

Illinois

A bill has been introduced in the Illinois State Senate to extend the data center tax credit program to businesses that mine BTC and other cryptos.

The paper was documented by Republican Senator Sue Rezin. Democrat Julie Morrison joined as co-sponsor.

The program noted in the bill has been operating since 2019. Six data center operators received over $160 million in tax credits, according to a 2020 State Department of Commerce report. In total, they created 120 jobs and invested $1.6B.

To authorize for the program, applicants must guarantee an investment of at least $250 million and the creation of 20 jobs. They must also obtain the status of a carbon-neutral enterprise.

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Subject to the requirements, benefits can be provided to both new data centers and those already operating in the state.

The Chicago Tribune spoke about one of the bitcoin mining farms in Illinois. Operated by New York-based firm Sangha Systems, the facility is located on the site of a former Hennepin steel mill and has been in operation since 2019.

According to the co-founder of the company, Spencer Marr, by the autumn they expect to begin construction of a solar power plant on leased land to convert the facility to renewable energy. However, the process will only be effective if it receives subsidies from the state, he said. The enterprise consumes about 7 MW.

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In August 2021, the United States took the lead in the share of hashrate in the bitcoin network. Along with Kazakhstan and Canada, the country has become one of the main destinations for the “great migration” of Chinese miners after the industry was banned in China.