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

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

The prime tar get of the critics is the oil depletion allowance.

From Time Magazine Archive

President Nixon has proposed that Congress repeal the U.S. depletion allowance for oil wells located abroad.

From Time Magazine Archive

The bill calls for a repeal of the 7% business investment tax credit, a reduction from 27�% to 22% of the oil depletion allowance, and increased taxes on high-bracket capital gains.

From Time Magazine Archive

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