depletion allowance

American  

noun

1. a tax reduction allowed on income from exhaustible resources, as oil or timber.

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depletion allowance Cultural  

1. A deduction from taxable income based on the eventual exhaustion or waste of a natural asset, such as an oil field.

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Example Sentences

The bill calls for a repeal of the 7% business investment tax credit, a reduction from 27�% to 22% of the oil depletion allowance, and increased taxes on high-bracket capital gains.

From Time Magazine Archive

More important it is likely that the domestic depletion allowance will be abolished or substantially reduced.

From Time Magazine Archive

Even so, Congress has not been persuaded that exploration would be discouraged by a reduction in the depletion allowance.

From Time Magazine Archive

The companies, however, generate such huge tax write-offs from other sources�mainly the foreign-tax credit �that they rarely need to use the foreign depletion allowance.

From Time Magazine Archive

Nothing is more sacred to many Congressmen than the depletion allowance.

From Time Magazine Archive