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

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

For their part, oilmen maintain that they would not have risked North Slope drilling without the depletion allowance, and claim that the allowance is necessary to spur further development.

From Time Magazine Archive

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

From Time Magazine Archive

While industry lobbyists still protested the impending death of the depletion allowance, some individual oil executives were pleased to fend off a much harder blow.

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