New York State Senators Liz Krueger and Andrew Gounardes proposed Senate Bill 8518 on October 2, 2025, introducing a tax targeting energy-intensive proof-of-work crypto mining facilities relying on non-renewable energy.
The bill could redirect economic benefits from miners to public energy programs, significantly impacting Bitcoin and other PoW cryptocurrencies mined with fossil fuels in New York.
$500 Million Annual Revenue Expected from Mining Tax
Expected financial impact includes over $500 million annually in tax revenue. The funds aim to support NYS Energy Affordability Programs, subsidizing utility costs for low‑income households. No public statements from major mining firms have surfaced regarding the proposal.
The bill may significantly impact New York‑based mining firms, focusing on major Bitcoin and other PoW mining. Historical data suggests rising electricity costs could challenge miner profitability, reinforcing migration trends similar to China and Kazakhstan's actions.
2022 Fossil‑Fuel Moratorium Precedes New Mining Tax Proposal
In 2022, New York imposed a temporary moratorium on fossil‑fuel crypto mining, estimating $10.6 billion in potential environmental damages. Similar actions in Kazakhstan and China led to significant miner relocations, affecting global crypto markets.
Experts indicate this policy could drive a shift towards renewable energy integration. Displacement of mining activities may echo previous global trends, notably where regulatory pressures prompted industry‑wide adaptations to comply with energy efficiency norms.
Liz Krueger, New York State Senator, emphasized the importance of this initiative, stating, “Cryptocurrency mining corporations reap enormous profits while externalizing the true costs of their operations onto our communities, our climate, and New York families’ utility bills. This bill ensures that the most energy‑intensive facilities finally pay their fair share” (source).