President issues emergency diesel tax deferral for farmers and truckers
The order defers diesel excise taxes and waives penalties for farmers, truckers and other qualified taxpayers on diesel used between Oct 5 and Dec 31 2026.
Executive Order 14435, signed on October 5, 2026, directs the Secretary of the Treasury to defer certain diesel fuel excise tax liabilities and to provide penalty relief for qualifying taxpayers.
Within five days of the order, the Treasury, in consultation with the Secretary of War as appropriate, must determine whether a qualifying event under 26 U.S.C. 7508A has occurred and identify affected taxpayers. The order authorizes deferral of taxes imposed by 26 U.S.C. 4041(a)(1)(A) or 26 U.S.C. 4041(b)(1)(B) that are incurred between October 5, 2026 and December 31, 2026, without penalties, interest, or additional amounts. The Internal Revenue Service is to announce that penalties under 26 U.S.C. 6715(a)(1) or (a)(2) will not be imposed on dyed diesel sold for highway use during the same period, and that penalties for failure to make semimonthly deposits are also waived.
The Treasury must issue implementing guidance that specifies the relief, covered taxpayers, locations, and the deadline by which deferred taxes must be paid. Section 4 directs the Secretary to explore legislative or other avenues to eliminate the deferred tax obligation entirely.
The order also tasks the Secretaries of Agriculture and Transportation, and the Director of the White House Office of Intergovernmental Affairs, to coordinate distribution of dyed diesel, maintain highway safety enforcement, and encourage state actions that align with the relief measures.
The order contains standard general provisions stating it does not create any enforceable right or benefit, and that publication costs are to be borne by the Department of Agriculture. The order was published in the Federal Register Vol. 91, No. 195, FR Doc 2026-20855.
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