The United States Department of the Treasury Releases 2025 Tax Proposal, Intending to Impose 30% Power Tax on Mining Companies

US Treasury Department releases 2025 tax proposal, similar to the 2023 proposal, which may impact mining companies.

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Mining companies may have to pay a 30% electricity tax
Unified tax rules

Mining companies may have to pay a consumption tax on cryptocurrency mining, according to the proposal, at a rate of 30% of the mining electricity cost. Mining companies also need to report the amount of electricity, type, and cost used for mining.

Assuming that mining companies use external power sources (non-grid electricity), they will also need to pay 30% of the estimated electricity cost as taxes. The proposal claims that the government’s intention to propose mining taxes is based on environmental considerations due to the significant energy consumption involved in mining.

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Previously, the US Department of Energy (DOE) had requested mining companies to report their energy consumption for the next six months. However, this investigation has been ordered to be terminated by the US court, considering it hasty, as the Department of Energy skipped specific steps such as notification and comment periods.

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Judge rules to terminate mining company energy investigation, criticizing the hasty procedures of the US Department of Energy
)

Unified tax rules

The government also aims to further unify tax rules. Currently, if losses occur from holding cryptocurrency assets, they can still be offset through tax rules different from stocks and securities. The government proposes that all digital assets should adhere to the same tax rules as stocks and securities.

The majority of the proposal aligns with the cryptocurrency tax policies proposed by the Biden administration in 2023. However, the proposal did not ultimately pass formally.

During the G7 summit, President Biden explicitly stated that tax policies would not protect tax evaders and cryptocurrency traders, putting nearly one million Americans at risk of losing food assistance.

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Biden mentions cryptocurrency transactions during G7 summit: Tax policies cannot make concessions
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Cryptocurrency Tax
Mining companies

Further reading
Are mining stocks being replaced? Research institutions: Investors are going long on Bitcoin ETFs and shorting mining stocks
Bitcoin’s 50% surge triggers mining frenzy, US Department of Energy requests energy reports from mining companies