The U.S. Treasury Department releases a tax proposal for 2025, proposing a 30% electricity tax on mining companies.

The U.S. Treasury Department released the 2025 tax proposal on Monday, which includes similar propositions regarding crypto taxation as the 2023 proposal, potentially impacting mining companies.

Mining Companies May Face 30% Electricity Tax

The U.S. government may impose a consumption tax on cryptocurrency mining companies. According to the proposal, the tax rate would be 30% of the mining electricity cost; mining companies would also need to report the amount of electricity used for mining, the type of electricity fees, and costs.

If mining companies use non-grid power supply or external purchased electricity, they would also need to pay 30% of the estimated electricity cost as tax; the proposal claims that the government's intention in proposing a mining tax is based on environmental considerations due to the significant energy consumption involved in mining.

Previously, the U.S. Department of Energy (DOE) had requested cryptocurrency mining companies to report their energy consumption for the next six months, but this investigation has been ordered to be terminated by a U.S. court, citing that the DOE skipped specific steps such as notification and comment periods.

Judge Rules to Terminate Mining Companies' Energy Investigation, Criticizes U.S. Department of Energy for Hasty Procedures

Unified Tax Rules

The government also aims to further unify tax rules. Currently, if losses occur in held cryptocurrency assets, they can still be offset under tax rules different from stocks and securities. The government proposes to align the tax rules for all digital assets with stocks and securities.

The majority of the proposals align with the cryptocurrency tax policies proposed by the Biden administration in 2023, although the proposal was ultimately not formally adopted.

During the G7 summit, Biden explicitly stated that the tax policies would not protect wealthy tax evaders and cryptocurrency traders, putting nearly 1 million Americans' food assistance at risk.

Biden Addresses Cryptocurrency Trading at G7: Tax Policies Will Not Compromise