A bill to amend the Internal Revenue Code of 1954 to allow a deduction as an expense for geological and geophysical costs in the case of wells for oil, gas, or geothermal resources and to allow a deduction as an expense for intangible drilling costs in the case of wells for geothermal resources.

Title I: Geological and Geophysical Expenditures - Amends the Internal Revenue Code to allow a deduction for domestic geological and geophysical costs incurred while searching for oil and gas deposits. Establishes such costs as an item of tax preference.

Title II: Geothermal Wells - Amends the Internal Revenue Code to allow a deduction for intangible drilling and development costs and domestic geological and geophysical costs in the case of wells drilled for geothermal steam and associated geothermal resources. Establishes such costs as items of tax preference.