Trump's tax-exempt diesel draws skepticism from farmers, eludes others
USO•Trump temporarily waived the off-road requirement for red-dyed diesel, but farmers cited residue and state penalties as reasons not to use it on public roads, while other drivers struggled to find the fuel. The IRS will not impose a penalty for highway use from October 1 to December 31, but state rules still apply.
1. Farmers weigh the risks
Trump's order temporarily allows red-dyed diesel, generally used in farm equipment, to be used on public roads. Farmers said potential savings were not worth the risk of dye residue remaining in fuel tanks after the waiver expires. The IRS said it would not impose a penalty for highway use from October 1 to December 31, but the order does not affect state taxes or penalties.
2. State rules vary
Kansas prohibits dyed diesel on public roads unless it is purchased lawfully outside the state; violators can face a felony, license suspension and penalties of $1,000 to $10,000. Iowa allows highway use until February for vehicles hauling certain agricultural products, while Texas requires drivers to register for a temporary suspension of restrictions.
3. Some drivers cannot find it
A Reuters reporter found that three of four Houston sites listed as selling red diesel offered only commercial diesel, while pumps at the fourth were not working. Farmer Jay Sorg estimated the order could save him $1,500 to $2,000, but said that would not offset higher costs for fuel and other inputs.
