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US HR6873

US HR6873
Geothermal Tax Parity Act


summary

Introduced
12/18/2025
In Committee
12/18/2025
Crossed Over
Passed
Dead

Introduced Session

119th Congress

Bill Summary

A BILL To 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, and for other purposes.

AI Summary

This bill, titled the Geothermal Tax Parity Act, amends the Internal Revenue Code of 1986 to allow businesses to amortize, or gradually deduct the cost of, geological and geophysical expenditures related to exploring for or developing geothermal deposits, similar to how these costs are treated for oil and gas. Specifically, it modifies Section 167(h)(1) to include "geothermal deposits" alongside "oil or gas" for this amortization purpose, and also amends Section 469(c)(3) to extend an exception to passive loss limitations for working interests in geothermal properties, mirroring existing provisions for oil and gas. These changes aim to provide tax parity for the geothermal industry by allowing these exploration and development costs to be expensed over time, which can encourage investment in geothermal energy.

Committee Categories

Budget and Finance

Sponsors (6)

Last Action

Referred to the House Committee on Ways and Means. (on 12/18/2025)

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