Abstract. Algebras simple with respect to an action of a Taft algebra H m 2 (ζ) deliver an interesting example of H-module algebras that are H-simple but not necessarily semisimple. We describe finite dimensional H m 2 (ζ)-simple algebras and prove the analog of Amitsur's conjecture for codimensions of their polynomial H m 2 (ζ)-identities. In particular, we show that the Hopf PI-exponent of an H m 2 (ζ)-simple algebra A over an algebraically closed field of characteristic 0 equals dim A. The groups of automorphisms preserving the structure of an H m 2 (ζ)-module algebra are studied as well.The notion of an H-(co)module algebra is a natural generalization of the notion of a graded algebra, an algebra with an action of a group by automorphisms, and an algebra with an action of a Lie algebra by derivations. In particular, if H m 2 (ζ) is the m 2 -dimensional Taft algebra, an H m 2 (ζ)-module algebra is an algebra endowed both with an action of the cyclic group of order m and with a skew-derivation satisfying certain conditions. The Taft algebraThe theory of gradings on matrix algebras and simple Lie algebras is a well developed area [3,6]. Quaternion H 4 (−1)-extensions and related crossed products were considered in [9]. In [14], the author classified all finite dimensional H 4 (−1)-simple algebras. Here we classify finite dimensional H m 2 (ζ)-simple algebras over an algebraically closed field (Sections 2-3).Amitsur's conjecture on asymptotic behaviour of codimensions of ordinary polynomial identities was proved by A. Giambruno and M. V. Zaicev [10, Theorem 6.5.2] in 1999.Suppose an algebra is endowed with a grading, an action of a group G by automorphisms and anti-automorphisms, an action of a Lie algebra by derivations or a structure of an Hmodule algebra for some Hopf algebra H. Then it is natural to consider, respectively, graded, G-, differential or H-identities [1,2,4,7,15].The analog of Amitsur's conjecture for polynomial H-identities was proved under wide conditions by the author in [12,13]. However, in those results the H-invariance of the Jacobson radical was required. Until now the algebras simple with respect to an action of H 4 (−1) were the only example where the analog of Amitsur's conjecture was proved for an H-simple non-semisimple algebra [14]. In this article we prove the analog of Amitsur's conjecture for all finite dimensional H m 2 (ζ)-simple algebras not necessarily semisimple (Section 4) assuming that the base field is algebraically closed and of characteristic 0.