A bill to amend the Internal Revenue Code of 1954 with respect to the taxation of income from the production and sale of geothermal steam and associated resources.

Amends the Internal Revenue Code to allow as a deduction an amount equal to 25 percent of the gross income from geothermal steam and geothermal resources property.

Limits such deduction to a maximum of 50 percent of the taxpayer's taxable income from the geothermal steam and geothermal resources property for the taxable year.

Directs the Secretary of the Treasury to adopt regulations which allow the same deduction for intangible drilling and development costs for geothermal steam and geothermal resources as are presently available for the development of oil and gas wells.