Geothermal Tax Parity Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6873 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 6873

  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.


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                    IN THE HOUSE OF REPRESENTATIVES

                           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

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                                 A BILL


 
  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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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.
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