In the Illinois State Senate, a bill was introduced, proposing to expand the data-center tax-incentive program for bitcoin and other cryptocurrency mining operations.
The bill was filed by Republican Senator Sue Rezin. She was joined as a co-sponsor by Democrat Julie Morrison.
The program mentioned in the bill has been in operation since 2019. According to a 2020 report from the state Department of Commerce, cited by The Block, tax incentives totaling more than $160 million benefited six data-center operators. Collectively, they created 120 jobs and invested $1.6 billion.
To qualify for participation in the program, applicants must guarantee investments of at least $250 million and create 20 jobs. They must also obtain carbon-neutral enterprise status.
If the requirements are met, the incentives may be extended to both new data centers and those already operating in the state.
The Chicago Tribune reported on one of the Bitcoin mining farms in Illinois. The facility, operated by the New York-based firm Sangha Systems, is located on the site of a former steel mill in Hennepin and has been in operation since 2019.
According to Spencer Marr, co-founder of the company, they expect to begin construction of a solar power plant on leased land by autumn to move the facility to renewable energy. However, the project will only be viable if state subsidies are obtained, he says. The facility consumes about 7 MW.
In August 2021, the U.S. topped the charts for hash rate share in the Bitcoin network. Alongside Kazakhstan and Canada, the country became one of the main destinations of the ‘great migration’ of Chinese miners after the industry was banned in China.
However, while U.S. firms are actively expanding infrastructure and scaling up capacity for cryptocurrency mining, Kazakhstan has been unable to cope with the influx of new major electricity customers:
In January, U.S. congressional hearings were held on the impact of mining on energy use and the environment.