WASHINGTON, D.C. – Farmers and truckers across America will see immediate tax relief when filling their tanks after President Trump signed an executive order allowing off-road “dyed” diesel to be used on highways through the end of the year. Dyed diesel is the same fuel farmers already use in tractors and combines and is exempt from the federal highway tax. The order directs the Treasury to waive the steep penalties that would normally apply to highway use of dyed diesel, as well as the federal highway tax – all of which will give producers relief this harvest season.
Ways and Means Committee Chairman Jason Smith (MO-08) issued the following statement:
“Diesel powers the American economy. It runs the combines at harvest, the rigs on our interstates, and the equipment on job sites across the country. When the price of diesel is high, the cost of nearly everything else climbs with it. President Trump’s executive order provides farmers and truckers with much-needed relief at the pump, which will be felt across our economy.
“Republicans already put money back in the pockets of farm families and other businesses with the Working Families Tax Cuts. We protected family-owned businesses from the Death Tax and made both 100 percent immediate expensing and the 20 percent small business deduction permanent so producers can invest in new equipment and compete with large corporations. For their part, Democrat-led states shut down their own refineries to chase radical Green New Deal energy policies, and they voted in Congress against the Working Families Tax Cuts, in an effort to raise taxes on the very farmers and truckers this order helps. Republicans will keep fighting along with President Trump to unleash American energy and stand with the men and women who keep this country fed and fueled.”
President Trump’s executive order lowers diesel costs for farmers, truckers, and workers:
- The Treasury Department will defer the 24.4-cent-per-gallon federal excise tax on dyed diesel used on highways through December 31, without interest or penalties, and explore pathways to eliminate the obligation to pay the deferred taxes.
- The Trump Administration estimates the order will save truckers more than $100 per refill.
- The Department of Agriculture estimates that the order represents roughly $640 million in combined federal and state savings across about 224.6 million harvested acres.
- The Agriculture Secretary will work to ensure farmers can access dyed diesel in high-demand areas.
- The Transportation Secretary will coordinate access with states, industry, and labor organizations.