A bipartisan bill sponsored on Dec. 18 by U.S. Rep. Celeste Maloy (R-UT) would extend federal oil and gas tax provisions to geothermal projects.
“Geothermal energy is a reliable resource with enormous potential, especially in the West,” Rep. Maloy said. “Utah is already proving what next generation geothermal can deliver. This bill removes outdated barriers in the tax code so private investment can keep pace with innovation, strengthen our energy security, and create high quality jobs in rural communities.”
The congresswoman introduced the Geothermal Tax Parity Act of 2025, H.R. 6873, alongside four original cosponsors, including U.S. Reps. John Garamendi (D-CA) and Blake Moore (R-UT).
If enacted, H.R. 6873 would 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, according to the Congressional Record bill summary.
“Geothermal energy is one of the most promising, clean energy resources we have,” said Rep. Garamendi. “The bipartisan Geothermal Tax Parity Act is simple: if oil and gas receive a tax benefit, geothermal should too.”
Specifically, the bill would allow geothermal projects to qualify for the same passive loss treatment long available to oil and gas investments, enabling investors to deduct project losses against other income.
Additionally, the measure would extend existing tax treatment for geological and geophysical exploration costs to geothermal development in an effort to reduce upfront risk and encourage private-sector investment, says a bill summary provided by Rep. Maloy’s office.
The U.S. Oil and Gas Association, Geothermal Rising, Fervo Energy, Citizens for Responsible Energy Solutions, the Bipartisan Policy Center, Greenfire Energy, Quaise Energy, and Eavor support the bill, which is under consideration by the U.S. House Ways and Means Committee.