Definition of depletion allowance in English:

depletion allowance

noun

North American
  • A tax concession allowable to a company whose normal business activities (in particular oil extraction) reduce the value of its own assets.

    • ‘This is especially true of the U.S. fossil-fuel industry, which includes a depletion allowance - a tax break based on the eventual exhaustion of an oil field - for oil producers.’
    • ‘Why did the depletion allowance survive for so long in a system of representative government?’
    • ‘The oil industry has enjoyed billions in breaks in the form of depletion allowances.’
    • ‘The association suggested an amendment to the Income Tax Act (in aid of industry) to enable people engaged in quarrying to qualify for the initial allowances and the depletion allowance.’
    reduction, cut, discount, deduction, decrease
    View synonyms

Pronunciation

depletion allowance

/dəˈplēSH(ə)n əˌlouəns/