Reps. Garamendi and Maloy Introduce the Bipartisan Geothermal Tax Parity Act of 2025

WASHINGTON, D.C.- Today, Representatives John Garamendi (D-CA-08) and Celeste Maloy (R-UT-02) introduced the bipartisan Geothermal Tax Parity Act of 2025, to promote geothermal projects, one of America's cheapest and most reliable energy sources, by extending long-standing oil and gas tax provisions to geothermal projects. The bill supports a rapidly growing American energy industry delivering reliable, around-the-clock power. The legislation is co-led by Blake Moore (R-UT-01), Steven Horsford (D-NV-04), and Russ Fulcher (R-ID-01).

"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. John 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. Celeste 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 This bill removes outdated barriers in the tax code so private investment can keep pace with innovation, strengthen our energy security, and create high quality jobs in rural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 Actwould 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.

"If our tax code continues to give benefits to big oil and gas, it should at least recognize the value of geothermal energy too," said Rep. Steven Horsford. "Geothermal offers firm, reliable, low-carbon power that strengthens our energy security and insulates consumers from volatile global markets. Despite this, geothermal does not benefit from long-standing tax incentives that drive investment. I'm proud to co-lead the Geothermal Tax Parity Act to help level the playing field. By extending proven incentives to this emerging technology, we can deliver dependable power for advanced manufacturing, AI, and grid resilience. Nevada is already leading the way with twenty-eight operating and authorized geothermal plants, and this bill ensures the United States leads globally by investing in American resources, American workers, and American innovation."

The Geothermal Tax Parity Actis 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. "By creating the right investment climate for next-generation geothermal technologies, Representatives Maloy and Garamendi are positioning the United States to command technological leadership in accessing an energy resource that dwarfs all other sources combined, strengthening our national security and economic competitiveness."

"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. "Establishing tax parity for geothermal applications will help accelerate deployment, attract private investment, and strengthen America's energy security-while supporting workforce growth and expanding deployment across the full spectrum of geothermal technologies."

"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."

"Rep. Maloy's Geothermal Tax Parity Act will provide an essential market-based tailwind to help ignite an American geothermal boom. By modernizing the tax code to reflect the geothermal's unique value and potential, this bill levels the playing field for investors-attracting private capital and helping secure a future of clean, reliable and American baseload power," said Zanskar.

"CRES applauds the introduction of the Geothermal Tax Parity Act, which will accelerate the deployment of geothermal energy. Geothermal energy is an important, home-grown part of the nation's energy mix. By accelerating investments into this industry, America's energy system can become cleaner, more reliable and more affordable," said Citizens for Responsible Energy Solutions.

Read the full bill here.

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