In a recent hearing, Courtney Dentlinger, former head of the Nebraska Bureau of Economic Development, testified on Bitcoin, stating that mining reduces property taxes.
Mining lowers taxes
Speaking about the crypto business at the hearing, Dentlinger said that crypto has many benefits, including tax revenue and job creation. In her statement, Dentlinger noted that cryptocurrency firms offer jobs that pay reasonably well.
Furthermore, Dentlinger mentioned the state’s tax revenues and local political divisions. She gave an example where one mining facility in Nebraska brought in about $1.6 million in state sales tax over a 12-month period. This same facility brought in about $3.8 million for local tax inspectors.
(embed) https://www.youtube.com/watch?v=CY2c6W3Mtm4 (/embed)
Dentlinger noted that the taxes collected enable the development and maintenance of infrastructure such as the local airport. Not only does better facilities improve quality of life, it brings more business to Nebraska.
Dentlinger and Ricketts agree that taxes from crypto companies increase their total revenue, thus keeping property taxes low in Nebraska.
Dentlinger has also shown a keen interest in Nebraska, as several companies plan to move their cryptocurrency businesses to the region. Moreover, clients are willing to host opportunities because of the tax benefits and well-paying jobs.
Check out cryptocurrency mining and energy
The probe was primarily looking at the energy consumption of cryptocurrency mining. Dentlinger noted that Nebraska still has additional capacity available. She explained that many irrigation sites are now powered by diesel electricity.
Wells requires electricity for three months of the year, but uses diesel for most of the year. This means that Nebraska has more capacity for more cryptocurrency companies for about nine months annually.
In terms of the carbon footprint, Dentlinger said that new industries such as cryptocurrency are fueling IRP growth due to the provision of additional generation resources, including clean energy technology. This means that any new resource deployed in the future will have a lower carbon footprint.
Crypto mining companies use electricity in controlled amounts, which means that steady revenue can help fund clean energy technology.