December 18, 2025
Ms. Maloy (for herself, Mr. Garamendi, Mr. Moore of Utah, Mr. Fulcher, and Mr. Horsford) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to allow amortization of geological and geophysical expenditures in connection with the exploration for, or development of, geothermal deposits, and for other purposes.
Section 1. Short title
This Act may be cited as the Geothermal Tax Parity Act
.
Sec. 2. Amortization of geological and geophysical expenditures in connection with exploration for or development of geothermal deposits
(a) In general
Section 167(h)(1) of the Internal Revenue Code of 1986 is amended by striking oil or gas
and inserting oil, gas, or geothermal deposits
.
(b) Effective date
The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.
Sec. 3. Exception to passive loss limitations for working interests in geothermal properties
(a) In general
Section 469(c)(3) of the Internal Revenue Code of 1986 is amended—
(1)
in the paragraph heading, by striking oil and gas
and inserting oil, gas, and geothermal
, and
(2)
by striking oil or gas
each place it appears and inserting oil, gas, or geothermal
in each such place.
(b) Effective date
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.