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

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

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

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