Nebraska Bitcoiners Oppose Electricity Tax on Mining
The Nebraska Legislature is considering a new tax that could significantly impact Bitcoin miners across the state. LB526, introduced by Sen. Mike Jacobson at the request of Gov. Jim Pillen, proposes an excise tax of one cent per kilowatt-hour on electricity used for cryptocurrency mining operations. This move has sparked concern within the Bitcoin community, as it threatens Nebraska’s ability to remain a competitive location for Bitcoin mining and broader digital innovation.
The Justification for the Tax
Supporters of LB526 argue that Bitcoin mining consumes a large portion of Nebraska’s power supply, particularly in areas like Kearney, where nearly half of the electricity is reportedly used for mining operations. Senator Jacobson claims the tax is not meant to push miners out of Nebraska but to ensure that power remains available for other industries.
However, the proposal raises important questions: Should Nebraska penalize Bitcoin miners for using electricity the same way any other industry does? Would this tax set a dangerous precedent, allowing the government to selectively tax industries based on subjective criteria?
A Threat to Nebraska’s Tech and Business Growth
Matthew Carson, representing AAIM Data Centers Inc., voiced strong opposition to the bill, emphasizing that such a tax unfairly targets Bitcoin mining businesses and could force them to relocate. The Nebraska Bitcoiners community echoes this concern—why should Nebraska drive away an emerging industry rather than embrace the economic benefits it brings?
Bitcoin mining provides a unique opportunity for Nebraska to become a hub for energy innovation, helping stabilize power grids by consuming excess electricity during off-peak hours. Moreover, miners are increasingly investing in renewable energy solutions, aligning with sustainability goals rather than being an unnecessary burden on the grid.
Bitcoin Mining as an Opportunity, Not a Threat
The Nebraska Bitcoin Meetup group believes that Bitcoin mining represents a strategic advantage for the state. Instead of implementing punitive taxes, lawmakers should explore ways to integrate Bitcoin mining into Nebraska’s energy infrastructure as a stabilizing force.
• Strengthening Rural Economies: Bitcoin mining operations create jobs and drive investments into rural communities, often revitalizing areas with underutilized energy resources.
• Encouraging Renewable Energy Development: Many mining facilities already prioritize renewables, making them an ally in Nebraska’s push for energy innovation.
• Keeping Nebraska Competitive: Other states are actively encouraging Bitcoin mining through incentives and regulatory clarity. A tax would discourage investment and send businesses elsewhere.
Call to Action: Protect Bitcoin Mining in Nebraska
The Nebraska Bitcoin Meetup group urges members to take action against LB526. If passed, this tax could set a harmful precedent, leading to further regulatory overreach and discouraging technological advancement.
📢 What You Can Do:
✅ Contact your state representatives and express your opposition to LB526.
✅ Attend public hearings and share your perspective on the benefits of Bitcoin mining.
✅ Support local businesses and data centers that rely on Bitcoin mining to remain competitive.
This is not just about Bitcoin—it’s about economic freedom, innovation, and ensuring Nebraska remains a welcoming state for future technologies.