The order will run through the end of the year to support farmers and truckers.
President Donald Trump signed an executive order in Nebraska on Monday that temporarily allows tax-free, off-road, dyed diesel to be used on highways, deferring the federal diesel tax on that fuel through the end of the year. The federal tax on diesel is 24.4¢ per gallon and the legal penalty for burning dyed fuel in road-registered vehicles has been a minimum of $1000.
President Trump said, “For many years, farm vehicles, construction equipment, and other off-road vehicles have used what is known as ‘red dye’ diesel… which is exactly the same as normal diesel, but is sold tax-free for off-road vehicles and big trucks.” He added that his executive order will “officially waive the off-road requirement and allow anyone to purchase tax-free red dye diesel for any reason.”
The White House stated, “Where states match this federal action, savings will top $100 per fill — a real difference for the hardworking Americans who haul the freight and grow the food.”
The order defers “payment of the Federal excise tax imposed for on-road use of dyed diesel fuel for the remainder of the year without interest or penalties, and to explore pathways to eliminate the obligation to pay the deferred taxes.”
As the Lord Leads, Pray with Us…
- For President Trump as he considers options to lower the price of fuel and improve affordability.
- For the president and his administration officials as they assess and seek to strengthen the nation’s supply chain.
Sources: The White House, RedState, Legal Clarity
