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

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

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

From Time Magazine Archive

Like the depletion allowance, the quota system is also justified as a means of encouraging exploration for more domestic reserves.

From Time Magazine Archive