Executive OrderThe White HouseOctober 6, 2026

Farmers and truckers may get a temporary diesel tax break

Treasury has five days to decide whether eligible taxpayers can defer certain diesel taxes for fuel-related costs from October 5 through December 31, 2026.

Summary

  • Who may be affected: Eligible taxpayers, including farmers and truckers.
  • What may change: If Treasury finds a qualifying event and legal authority, it will defer certain diesel excise taxes incurred from October 5 through December 31, 2026, without penalties or interest.
  • The IRS is directed to announce that it will not impose certain penalties when dyed diesel is sold for highway use or used on highways during that period. Its announcement must also address penalties for missed semimonthly tax deposits.
  • Treasury must issue guidance on who qualifies and when deferred taxes would be due. The order asks Treasury to explore ways to forgive the deferred amounts, but does not itself cancel them.

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Source: The White House

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