Section 1 Short title
This Act may be cited as the “Geothermal Tax Parity Act”.
Geothermal Tax Parity Act
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.
Sec. 2 Amortization of geological and geophysical expenditures in connection with exploration for or development of geothermal deposits
In general— Section 167(h)(1) of the Internal Revenue Code of 1986 is amended by striking “oil or gas” and inserting “oil, gas, or geothermal deposits”.
Effective date— The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after the date of the enactment of this Act.
Sec. 3 Exception to passive loss limitations for working interests in geothermal properties
in the paragraph heading, by striking “oil and gas” and inserting “oil, gas, and geothermal”, and
by striking “oil or gas” each place it appears and inserting “oil, gas, or geothermal” in each such place.
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.