Crypto firms failed to deliver ‘promised benefits’ from lawmaker-backed incentives, says nonprofit

The Tech Transparency Project (TTP) is a research initiative of the Campaign for Accountability, a US-based non-profit watchdog group, which states that cryptocurrency companies are almost in return for financial incentives offered by state governments. We have released a report claiming that we did not provide it.

In a report released Thursday, the TTP said Said Many cryptocurrency companies based in certain U.S. states don’t always offer jobs, economic growth, or tax benefits to residents, but they do offer “special incentives” to start a business. are enjoying the benefits. According to the group, crypto lobbyists are working on behalf of companies to get tax cuts and discounts on energy prices, while state governments “face budget shortfalls, soaring energy consumption and severe environmental damage.”

New TTP Report Outlines Laws And Tax Cuts Favoring Speculative Crypto Projects That Didn’t Generate Promised Job Creation And Taxpayer Social Benefits By Various State Governments From Nevada And Wyoming To Kentucky doing. https://t.co/ZEkqyQCCa1

Technical Transparency Project (@TTP_updates) August 4, 2022

The research group cited policies dating back to 2017, when state governments, including Nevada, Wyoming, Montana, and Kentucky, passed cryptocurrency promotion bills to encourage businesses to set up stores. In Montana, for example, the TTP reported that in 2017 policymakers passed a law to cut property taxes on data centers used for cryptocurrency mining. A mining company moved in, but later saw residents complain about “excessive noise, waste and power usage” and demand a moratorium.

Wyoming passed a bill exempting cryptocurrency companies from property taxes and no state income tax for residents, but TTP says blockchain-based payments company Ripple does not offer jobs in the state. reported that they only listed one cryptocurrency exchange, the Kraken. In 2020, Wyoming Gov. Mark Gordon reported that “devastating but necessary” budget cuts to government departments should be considered. The lawmaker is reported to be considering similar measures on K-12 education in 2021, though the economic fallout of the pandemic may have also played a role.

group Added:

At the very least, the public should have a say in these cryptocurrency handouts. Especially in economically distressed states, recognition of technological innovation should not take precedence over important taxpayer interests. There is none.”

Related: Georgia Lawmakers Consider New Bill to Give Crypto Miners Tax Exemption

Kentucky lawmakers vote to eliminate sales tax on electricity purchased by local crypto miners in 2021, allowing mining companies to qualify for state tax breaks aimed at clean energy businesses I made itreport release These incentives are estimated to cost the state about $11.6 million annually, according to the November 2021 State Budget Office.

“It is too early to tell how much these measures, which took effect on July 1, will actually hurt Kentuckians,” the TTP said. However, some state programs are already facing considerable budgetary pressure, which could be exacerbated by cryptocurrency incentives. […] Also, tax incentives are unlikely to create new jobs in Kentucky. “