Press Releases

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

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 This bill removes outdated barriers in the tax code so private investment can keep pace with innovation, strengthen our energy security, and create high quality jobs in rural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

In Utah, geothermal innovation is already underway. Fervo Energy is constructing the world’s largest next generation geothermal development in Beaver County. The project is expected to begin operations in 2026 and deliver up to 500 megawatts of power by 2028, supporting growing energy demand across the region.

“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.”

Industry leaders also voiced support for the legislation.

Fervo said, “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.”

“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.”

Zanskar stated, “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.”

Citizens for Responsible Energy Solutions added, "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."

The Geothermal Tax Parity Act is supported by a broad coalition including Geothermal Rising, Fervo Energy, U.S. Oil and Gas Association, Citizens for Responsible Energy Solutions, the Bipartisan Policy Center, Greenfire Energy, Quaise Energy, and Eavor.