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

The tax-reform drive in Congress threatens to reduce the 271% depletion allowance enjoyed by wildcatters, along with other drillers.

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

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

From Time Magazine Archive

Most of these deductions come from domestic oil production, but oilmen can also use the depletion allowance to reduce U.S. taxes on their foreign income.

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