The Critical Link: Speed-to-Service and Deduction Timing
The ability to quickly activate client miners is a tax-driven imperative. To qualify for the federal depreciation benefits, mining equipment must be purchased, installed, and operational (placed in service) during the tax year. Facility 4’s 15-day activation window ensures your assets meet this crucial deadline, guaranteeing first-year tax alignment.
State-Level Property Tax Exemption
Iowa provides a structural financial advantage by offering a property tax exemption for industrial machinery and equipment. This policy completely removes the recurring annual tax liability on your core ASIC assets, thereby increasing the net profitability and extending the operational lifespan of your investment.
Federal Immediate Equipment Expensing
For investors and entities, the purchase of mining infrastructure serves as a potent tool for immediate federal tax mitigation through accelerated depreciation:
Section 179 Expensing: Allows for the full cost of qualifying equipment, up to the annual limit (e.g., $2,500,000 for 2025), to be immediately written off in the year the asset is placed in service.
100% Bonus Depreciation: This mechanism is utilized to deduct the entire remaining cost of the equipment in the first year, after the Section 179 limit has been exhausted.
This strategic combination allows investors to achieve a near-complete capital recovery on hardware costs in the first year, providing a direct offset against other forms of taxable income and creating significant cash flow advantages.
To learn how to Turn Tax Code Into Alpha and maximize your after-tax yield for 2025, download our comprehensive investor guide on accelerated depreciation and entity structuring.