Illinois farmers and agricultural operators are receiving additional guidance on the temporary use of red-dyed diesel fuel on public highways through the end of the year.
The Internal Revenue Service announced October 14th that it will not impose federal penalties for the sale or use of dyed diesel fuel on highways nationwide through December 31, 2026.
The temporary relief follows an October 5th executive order from President Donald Trump addressing high diesel fuel costs.
However, the Illinois Farm Bureau is reminding members that the federal action does not permanently eliminate fuel tax obligations. Instead, certain tax payments may be deferred until a later date.
The IRS has indicated that additional guidance concerning those payments may be issued.
In Illinois, Governor JB Pritzker issued a separate executive order October 6th directing the Illinois Department of Revenue and Illinois State Police not to impose penalties for qualifying agricultural use of red-dyed diesel on public roads through December 31st.
Illinois documentation requirements remain in effect.
The Illinois Farm Bureau says agricultural operators seeking state penalty relief must maintain records documenting qualifying transportation activities conducted between October 6th and December 31st.
Those records must be retained for four years.
Red-dyed diesel is chemically similar to regular highway diesel but is marked with red dye to identify fuel generally exempt from highway fuel taxes and restricted to off-road uses, including farming and construction equipment.
Farm Bureau officials emphasize that the temporary relief does not authorize unrestricted highway use of dyed diesel beyond the applicable federal and state provisions.