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

See Examples For:

depletion allowance

One reason is that oil companies have less money to spend: Congress has eliminated most of their depletion allowance, and their profits have dropped.

From Time Magazine Archive

Since the price of crude oil on which the size of the depletion allowance is based has doubled over the past year, the write-offs will be even greater in 1973.

From Time Magazine Archive

The depletion allowance, for example, is more an incentive for oilmen to pump from existing wells than an inducement to explore for new sources of petroleum.

From Time Magazine Archive

One reason is the depletion allowance, which basically permits oil companies to deduct from their tax bills 22% of the value of the oil that their wells produce.

From Time Magazine Archive

While industry lobbyists still protested the impending death of the depletion allowance, some individual oil executives were pleased to fend off a much harder blow.

From Time Magazine Archive