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

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

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

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

From Time Magazine Archive

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

From Time Magazine Archive

The tax-reform drive in Congress threatens to reduce the 271% depletion allowance enjoyed by wildcatters, along with other drillers.

From Time Magazine Archive