10/06/2026
On October 5, 2026, President Trump directed temporary federal diesel tax relief through December 31, 2026. The program is not yet in effect, and key details on eligibility, administration, and implementation have not been released.
Importantly, the announcement does not change existing EPA, IRS, or state regulations governing diesel fuel use. Customers should continue to follow all current compliance, reporting, and recordkeeping requirements unless and until the appropriate federal and state agencies issue additional guidance.
Treasury and the IRS are anticipated to provide additional guidance in the coming days regarding eligibility requirements, tax treatment, potential deferral procedures, and any available penalty relief. Based on information available today, one important consideration is that the relief appears to be a tax deferral rather than tax forgiveness, meaning taxes may still become due at a later date.
Federal and state restrictions regarding the use of dyed off-road diesel fuel in on-road vehicles remain unchanged and continue to apply.
Because program details have not yet been finalized, customers should consult their tax advisors regarding how any federal relief measures may apply to their specific circumstances.
We will continue to monitor developments and share additional information as it becomes available.
Please contact your local Energy Sales Consultant or our VP of Energy with any questions.
