Individuals or investors in extractive industries (mining or drilling natural resources) may deduct a percentage of gross mining income as a depletion allowance. The allowance may exceed the actual cost of the resource property. For a more detailed description of this tax expenditure, see corporate excise item 2.204.
Origin: IRC §§ 611, 613, and 613A
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2020
FY2021
FY2022
FY2023
FY2024
Personal Income Tax
Deductions from Gross Income
1.203
Excess Natural Resource Depletion Allowance
Individuals or investors in extractive industries (mining or drilling natural resources) may deduct a percentage of gross mining income as a depletion allowance. The allowance may exceed the actual cost of the resource property. For a more detailed description of this tax expenditure, see corporate excise item <a href="/tax-expenditure-budget/corporate-excise-tax/deductions-from-gross-income/2-204">2.204</a>.
IRC §§ <a href="https://www.law.cornell.edu/uscode/text/26/611" target="_blank">611</a>, <a href="https://www.law.cornell.edu/uscode/text/26/613" target="_blank">613,</a> and <a href="https://www.law.cornell.edu/uscode/text/26/613A" target="_blank">613A</a>
0.2
0.2
0.2
0.2
0.2
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