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

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

From Time Magazine Archive

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

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

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