A new bill by proposed by two New Jersey assemblymen could mean tax and regulatory breaks for digital currency companies operating in the state.
According to The Star-Ledger, the bill would lessen burdens for cryptocurrency companies in an attempt to incentivize job creation in the state. Proposed by Assemblyman Rai Mukherji (D-Hudson) and Assemblyman Gordon Johnson (D-Bergen), the 30-page bill would create a regulatory framework for digital currency companies to operate within as well.
The bill comes two months after New Jersey’s Assembly Financial Institutions and Insurance committee held a two hour hearing about Bitcoin. The New Jersey Treasury officially recognized the digital currency in April when it wrote that digital currency transactions were subject to sales tax and would be treated as barter.
The Star-Ledger reported that the new bill, titled the “Digital Currency Jobs Creation Act,” would qualify companies for up to $5,000 in tax write-offs for each new job they create and exempt Bitcoin companies from having to pay tax on electricity. The legislation would also require companies to have an “effective cyber-security program” and hire a chief security officer.
“You need a lot of firepower by way of technology to be in this business,” Mukherji said. “It would try to ease some of that burden.”
He added that he is unsure whether the bill, which was yet to be introduced to the state Senate, would advance, but said some regulation would be needed.
“The legislation clarifies where digital currency stands sort of in the rubric of New Jersey law. In other states that’s been confusing,” Mukherji told The Star-Ledger. “I think this would be the first statute of its kind in the country. We would be establishing the framework legislatively.”
The bill is yet to be made available to the public, but Bitcoin Magazine will continue to follow this developing story.
Photo The Virginia House / CC BY-SA 2.0
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