Oklahoma Eyeing Tax Incentives For Bitcoin Mining
Introduced by Oklahoma State Senator John Montgomery, the State of Oklahoma is trying to pass a bill that would provide Bitcoin mining operations with tax incentives similar to other forms of "industrial processing" that have historically received such incentives in the state. Supposedly tax incentives could equate up to $5 million in reduced taxes for mining operations. The bill has already passed the state senate and will now move to the house before being written into law. In 2020 Oklahoma was the #4 producer of crude oil in the US, holding about 5% of the nation's oil reserves. In addition, Oklahoma's proved natural gas reserves are the fifth-largest in the nation, after Texas, Pennsylvania, West Virginia, and Louisiana. In 2019, nearly three times as much natural gas flowed out of Oklahoma as entered the state, according to the EIA. Natural gas is often a byproduct of oil production and is often flared into the atmosphere. In addition to having abundant natural gas resources, this flared natural gas can be monetized through Bitcoin mining while also slashing emissions. It seems only natural for the state to incentivize mining operations to move in, bringing with them, jobs, capital, and an ability to reduce methane emissions. As states like Texas, North Dakota, Oklahoma, and others begin to see the benefits of the Bitcoin mining industry, more states will recognize it as well and find ways to attract this burgeoning industry.