A bill to amend the Internal Revenue Code of 1954 to allow a deduction with respect to the extraction of geothermal energy.

Amends the Internal Revenue Code to allow to a taxpayer holding an economic interest in a geothermal energy property a tax deduction amounting to 22 percent of the gross income from such property excluding from such gross income an amount equal to any rents or royalties paid or incurred by the taxpayer in respect to such property. Requires the Secretary of the Treasury to issue regulations granting the option to deduct as expenses intangible drilling and development costs in the case of wells drilled for geothermal steam and associated geothermal resources.