Emergency Tax Relief On Diesel Fuel

The policy aims to reduce near-term fuel costs amid restricted global diesel supplies while maintaining transportation safety enforcement.

What the order does ​

• Directs the Treasury Secretary to determine within five days whether qualifying taxpayers may defer specified diesel taxes incurred from October 5 through December 31, 2026.
• Waives penalties, interest, and related additions on deferred amounts to the extent allowed by law.
• Directs the Internal Revenue Service to suspend specified penalties for highway use or sale of dyed diesel during the relief period and address missed semimonthly tax deposits.
• Requires Treasury guidance defining eligibility, conditions, deadlines, covered liabilities, and the date deferred taxes must be paid.
• Directs Treasury to explore legislation or other avenues to eliminate repayment of deferred taxes and to announce fuel-inspection resource plans.
• Directs transportation officials to coordinate with states, industry, and labor while continuing audits, inspections, monitoring, and other compliance enforcement.
• Directs agriculture officials to coordinate dyed-diesel distribution in high-demand areas and encourage corresponding state action.
• Directs the White House Office of Intergovernmental Affairs to encourage states to adopt corresponding policies.

Who it affects ​

• Farmers, truckers, agricultural cooperatives, rural fuel distributors, farm suppliers, and workers who rely on diesel fuel.
• Taxpayers eligible for diesel-tax deferral and sellers or highway users of dyed diesel.
• State governments, transportation industry leaders, and relevant labor organizations involved in implementation.