carveout

[kahrv-out]

noun

1. a process of reorganizing a corporation by creating a subsidiary and offering the public a minority of its stock, while the parent company remains in charge of the company; a partial spin-off.

2. exemption from a provision of the law.

Word History and Origins

Origin of carveout¹

First recorded in 1965–70; noun use of verb phrase carve out

Example Sentences

Rep. Paul Gosar, an Arizona Republican, last year proposed the End the Vaccine Carveout Act, which would have allowed people to bypass the no-fault system and head straight to civil court.

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Yet even this generous carveout was not broad enough for some religious groups.

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One reason he wants a carveout for H1B visas in the expected immigration crackdown is because he can use threats of deportation to extract high-intensity work for low pay from immigrant employees.

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“The CFPB’s final rule will close a special carveout that has allowed debt collectors to abuse the credit reporting system to coerce people into paying medical bills they may not even owe.”

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The industry won a carveout in the 2017 legislation that allowed its investors to get a large tax break.

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