President Trump Grants Temporary Diesel Fuel Tax Relief

On Monday, President Donald Trump signed an executive order temporarily allowing off-road “dyed” diesel fuel to be used on highways and deferring the applicable federal excise tax for the remainder of the year.

The order directs the Secretary of the Treasury to defer payment of the federal excise tax normally imposed when dyed diesel is used on-road. The deferred tax would not accrue interest or penalties, and Treasury is also directed to explore ways to eliminate the obligation to repay those deferred taxes.

The Secretary of Transportation is directed to coordinate with states, industry leaders, and labor organizations on access to dyed diesel.

The order also directs the White House Office of Intergovernmental Affairs to encourage additional states to adopt policies aligned with Treasury’s actions.

The administration said the temporary measure is intended to reduce fuel costs for farmers, truckers, and other workers affected by restricted global diesel supplies.

The full order is available here, and a White House fact sheet is available here.