USDA says temporary diesel fuel tax relief could save American farmers and transportation operators more than $640 million during the current agricultural harvest season. Agriculture Secretary Brooke Rollins announced Thursday that 31 states have taken or announced measures supporting the federal government’s emergency dyed-diesel relief initiative. President Donald Trump signed an executive order Oct. 5 directing federal agencies to temporarily suspend certain penalties and excise tax enforcement related to highway use of dyed diesel fuel. According to USDA, the initiative could generate more than $640 million in combined federal and state savings across approximately 224.6 million harvested acres. The federal diesel excise tax normally totals 24.4 cents per gallon. The Internal Revenue Service issued additional guidance Oct. 14 and Oct. 21 outlining temporary tax enforcement and reporting relief. USDA is encouraging additional states to adopt corresponding measures to reduce transportation and agricultural operating expenses.
USDA estimates diesel tax relief could save agriculture $640 million
