IDR Releases New Guidance: Dyed Diesel Use Proclamation

Governor Kim Reynolds recently signed a proclamation to temporarily suspend state penalties and taxes for the sale and use of dyed diesel to transport certain agricultural products on public roads in Iowa. The Iowa Department of Revenue has released new tax guidance to explain this proclamation:

• Dyed Diesel Use Proclamation
  The proclamation takes effect immediately and continues through February 4, 2027. Use tax may be due for dyed diesel fuel used during this period after the proclamation expires. Using dyed diesel in motor vehicles on public roads in Iowa for purposes other than those listed in the proclamation remains prohibited and subject to state penalties and taxes.

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