HR6873119th CongressWALLET

Geothermal Tax Parity Act

Sponsored By: Representative Maloy

Introduced

Summary

Treats geothermal like oil and gas for key tax rules. This bill would let companies amortize geological and geophysical exploration and development costs for geothermal deposits the same way they do for oil and gas. It would also update passive activity tax language to include geothermal. Those changes apply to amounts paid or incurred in taxable years beginning after the date of enactment.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Tax amortization for geothermal exploration

This bill would add "geothermal deposits" to the tax rule that lets companies amortize geological and geophysical exploration costs. If enacted, businesses and investors who pay for geothermal exploration or development would be able to spread those costs for tax purposes. The change would apply to amounts paid or incurred in taxable years beginning after the date of enactment.

Passive loss rule for geothermal owners

This bill would add geothermal to the working-interest exception to passive activity loss limits. If enacted, owners of geothermal working interests would be able to use losses from those interests to offset other income. The amendment would apply to taxable years beginning after the date of enactment.

Sponsors & CoSponsors

Sponsor

Maloy

UT • R

Cosponsors

  • Rep. Garamendi, John [D-CA-8]

    CA • D

    Sponsored 12/18/2025

  • Rep. Moore, Blake D. [R-UT-1]

    UT • R

    Sponsored 12/18/2025

  • Fulcher

    ID • R

    Sponsored 12/18/2025

  • Rep. Horsford, Steven [D-NV-4]

    NV • D

    Sponsored 12/18/2025

  • Auchincloss

    MA • D

    Sponsored 1/20/2026

Roll Call Votes

No roll call votes available for this bill.

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