Emergency Tax Relief on Diesel Fuel

This EO directs the Secretary of the Treasury to determine within 5 days whether relief is authorized under 26 U.S.C. 7508A and, if so, to defer payment of diesel fuel excise taxes under 26 U.S.C. 4041(a)(1)(A) and 4041(b)(1)(B) incurred from October 5, 2026, through December 31, 2026, without penalties or interest. It also directs the IRS to announce, within 5 days, that it will not impose penalties under 26 U.S.C. 6715 for dyed diesel fuel sold for use or used on the highway during that period, and requires the Secretary to issue implementing guidance, explore avenues including legislation to forgive the deferred amounts, and assess IRS allocation of fuel inspection resources. The Secretary of Transportation, through the Federal Motor Carrier Safety Administration, and the Secretary of Agriculture are directed to coordinate with states, industry, labor organizations, and agricultural stakeholders to facilitate implementation, and the Director of the White House Office of Intergovernmental Affairs is directed to encourage corresponding state action.

Affected taxpayers whose diesel fuel excise tax payments are deferred to Pay deferred diesel fuel excise taxes by the postponed payment date to be identified in Treasury implementing guidance (unclear).

No known legal challenges.