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

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

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

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

Nothing is more sacred to many Congressmen than the depletion allowance.

From Time Magazine Archive

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