carveout

[ kahrv-out ]

noun

1. a process of reorganizing a corporation by creating a subsidiary and offering the public a minority of its stock, while the parent company remains in charge of the company; a partial spin-off. Compare spin-off ( def 1 ), split-off ( def 3 ), split-up ( def 3 ).
2. exemption from a provision of the law.

Word History and Origins

Origin of carveout¹

First recorded in 1965–70; noun use of verb phrase carve out

Example Sentences

The industry won a carveout in the 2017 legislation that allowed its investors to get a large tax break.

From Salon

The EPA's Clean Bus Program currently has only a five-year funding window for its $5 billion carveout, which ends in 2026.

From Salon

It’s a narrow carveout, and lifts once a public body has taken final action.

From Seattle Times

But the statute has a narrow carveout for state laws that apply to the sellers’ conduct, and the Connecticut Supreme Court found that the state’s consumer protection and unfair trade practices law did apply—and that a lawsuit by the families of those massacred at Sandy Hook Elementary School could go forward.

From Slate

That carveout, the EU Tax Observatory warned, could “give firms incentives to move production to countries with tax rates below 15%.”

From Seattle Times