A Republican bill with 3 Democratic cosponsors · See all 5 cosponsors
Last activity — Referred to the House Committee on Ways and Means.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- 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
- Scored +6
Does this put more money into wind, solar and other renewable power?
The bill encourages investment in geothermal energy by aligning its tax treatment with that of oil and gas.
- Scored +5
Would business owners be better off under this?
The bill provides direct tax benefits to business owners involved in geothermal exploration and development.
- Scored +4
Does this cut taxes for small businesses?
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. Tap or hover a score for the reason it gave.
- Economy And Finance
- Does this make it easier to run a small business? — The expansion of amortization rules and exceptions to passive loss limitations provides significant support for energy-sector businesses. Does this cut taxes for small businesses? — The bill allows for the amortization of geological and geophysical expenditures for geothermal deposits, providing tax relief for businesses in that sector. Is this likely to grow the economy? — The bill incentivizes investment in the geothermal energy sector, which can contribute to economic expansion. Is this likely to create jobs? — By providing tax incentives for geothermal exploration and development, the bill may encourage industry growth and job creation. Does this cut the tax on profits from selling investments? — The adjustment to passive loss limitations for geothermal working interests can improve the tax treatment of investment returns.
- Demographic And Interest Groups
- Would business owners be better off under this? — The bill provides direct tax benefits to business owners involved in geothermal exploration and development. Would people with substantial wealth be better off under this? — The changes to passive loss limitations benefit high-income investors in geothermal working interests. Would people in rural areas be better off under this? — Increased geothermal development can lead to more economic activity and investment in rural areas. Would farmers be better off under this? — The bill may benefit rural land owners or farmers who engage in geothermal development on their property.
- Environment Energy And Infrastructure
- Does this put more money into wind, solar and other renewable power? — The bill encourages investment in geothermal energy by aligning its tax treatment with that of oil and gas.
- 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