10/11/2026 | News release | Distributed by Public on 10/11/2026 17:20
A new federal Executive Order directs the U.S. Treasury and IRS to provide temporary federal diesel-tax and dyed-fuel penalty relief through December 31, 2026. However, questions remain about how the federal action interacts with Ohio law and what it means for the use of dyed diesel in highway vehicles.
To help members understand the current situation, OABA has developed a Member Alert outlining the federal action, its practical impact in Ohio and considerations for both off-road farm equipment and on-road vehicles.
For now, OABA recommends continuing to use dyed diesel for normal off-road agricultural uses and clear diesel for highway vehicles until additional federal guidance is issued and Ohio confirms how the federal action interacts with state law.
OABA will continue monitoring guidance from Treasury, the IRS and the Ohio Department of Taxation and will update members as additional information becomes available.
Please contact the OABA office at [email protected] with any questions.