“Geothermal energy is one of the most promising, clean energy resources we have. It provides reliable, round-the-clock power, strengthens our energy security, and creates good-paying jobs,” said Rep. Garamendi.
“The bipartisan Geothermal Tax Parity Act is simple: if oil and gas receive a tax benefit, geothermal should too. By extending long-standing energy tax incentives to geothermal, we can accelerate next-generation clean energy deployment, leverage our existing workforce and engineering expertise, and position the United States as a global leader in geothermal power.”
“Geothermal energy is a reliable resource with enormous potential, especially in the West,” said Rep. Maloy. “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 This bill removes outdated barriers in the tax code so private investment can keep pace with innovation, strengthen our energy security, and create high quality jobs in rural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 Geothermal Tax Parity Act 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.
The bill would also extend existing tax treatment for geological and geophysical exploration costs to geothermal development, reducing upfront risk and encouraging private sector investment.
The Geothermal Tax Parity Act is supported by a broad coalition including Geothermal Rising, Clean Air Task Force, Citizens for Responsible Energy Solutions, the Bipartisan Policy Center, Fervo Energy, Greenfire Energy, Quaise Energy, and Eavor.
“Quaise Energy strongly endorses the Geothermal Tax Parity Act. This legislation will help unlock America's vast geothermal potential at exactly the moment we need it most,” said Carlos Araque, CEO and President of Quaise Energy.
“Geothermal Rising supports the geothermal tax parity bill and appreciates Rep. Maloy and Rep. Garamendi’s leadership in ensuring geothermal technologies are treated equitably under federal energy incentives,” said Bryant Jones, Executive Director at Geothermal Rising.
“We are grateful for Rep. Maloy and Rep. Garamendi’s leadership on the Geothermal Tax Parity Act. The bill will help attract capital to a rapidly growing industry, further positioning enhanced geothermal to meet our nation’s rising electricity demand with clean, baseload power,” said Fervo Energy.
“The Geothermal Tax Parity Act offers a practical and targeted policy solution to advance U.S. geothermal development by improving early-stage project economics and expanding access to capital,” said Jeanine Vany, Executive Vice President, Corporate Affairs at Eavor. “I commend the vision to align geothermal with proven financial frameworks long utilized in oil and gas. This approach will help unlock the deployment of sustainable, resilient, and always-available heat and power, supporting energy security and a clean energy future.”
Read the full bill here.
