Bill · H.R. 6873· House(119-HR-6873)
Geothermal Tax Parity Act
- Introduced
- 12/18/2025
- Last activity
- 12/18/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Celeste Maloy
- Cosponsors
- - 2 - 3
- Introduced
- In Committee
What this bill would do
The Geothermal Tax Parity Act aims to amend the Internal Revenue Code of 1986. It specifically seeks to allow the amortization of geological and geophysical expenditures related to the exploration or development of geothermal deposits. This change would add geothermal deposits to the existing rules currently applied to oil or gas. Additionally, the bill updates the rules regarding passive loss limitations for working interests. These changes would extend the current treatment of oil and gas to include geothermal properties.
Yes· 3 of 10
Does this put more money into wind, solar and other renewable power?+6
The bill encourages investment in geothermal energy by aligning its tax treatment with that of oil and gas.
Would business owners be better off under this?+5
The bill provides direct tax benefits to business owners involved in geothermal exploration and development.
Does this cut taxes for small businesses?+4
The bill allows for the amortization of geological and geophysical expenditures for geothermal deposits, providing tax relief for businesses in that sector.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Amortization of Expenditures: This provision allows for the amortization of geological and geophysical expenditures in connection with the exploration for, or development of, geothermal deposits (Section 2(a)). This could benefit those involved in the geothermal industry by allowing them to spread out the costs of exploration and development over time.
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Exception to Passive Loss Limitations: The bill amends the code to include geothermal properties within the exceptions for passive loss limitations for working interests (Section 3(a)). This could benefit investors or owners of geothermal properties by changing how losses are treated for tax purposes.
Potential Negative Impacts for People
- No negative impacts are explicitly stated in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+4Reduces Small Business Taxes+4Improves Economic Growth+3Increases Job Creation+3Reduces Capital Gains Tax+2
- Demographic And Interest Groups
- Good For Business Owners+5Good For High Net Worth Individuals+4Good For Rural Residents+3Good For Farmers+2
- Environment Energy And Infrastructure
- Increases Renewable Energy Investment+6
- 1/20/2026
- 1 Cosponsor added.
- 12/18/2025
- Referred to the House Committee on Ways and Means.
- 4 Cosponsors added.
- Introduced in House
Jake AuchinclossDemocrat · Massachusetts
Russ FulcherRepublican · Idaho
John GaramendiDemocrat · California
Steven HorsfordDemocrat · Nevada
Blake MooreRepublican · Utah