depletion allowance

American  

noun

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

---

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.

---

Example Sentences

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

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

From Time Magazine Archive

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

From Time Magazine Archive

In an unusual move for a Texan, he has proposed the elimination of the oil depletion allowance for the major oil producers.

From Time Magazine Archive

Oil companies grappled with new uncertainties about their future as the House Ways and Means Committee approved a tax bill that fairly soon is likely to wipe out the celebrated depletion allowance.

From Time Magazine Archive