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

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

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

From Time Magazine Archive

President Nixon has proposed that Congress repeal the U.S. depletion allowance for oil wells located abroad.

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

The bill calls for a repeal of the 7% business investment tax credit, a reduction from 27�% to 22% of the oil depletion allowance, and increased taxes on high-bracket capital gains.

From Time Magazine Archive