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.
- 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.
- Why did the depletion allowance survive for so long in a system of representative government?
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