The federal diesel order directs Treasury to determine whether certain excise tax payments can be deferred, but it does not itself grant a deferral.
The Oct. 5 order, published Oct. 9, applies its proposed relief to qualifying tax liabilities incurred from Oct. 5 through Dec. 31, 2026. Its terms make Treasury's legal determination the next step, according to the Federal Register order.
Comal County farmers and truckers cannot tell from the order alone whether their diesel tax payments will be postponed or when any postponed payment would be due. Treasury must first determine whether a qualifying event occurred and which taxpayers were affected under the cited statute. The order directed that determination within five days of Oct. 5; the signed document does not report its result.
The order also directs Treasury to have the IRS announce penalty relief involving dyed diesel sold for highway use or used on highways during the same Oct. 5–Dec. 31 period. It separately asks Treasury to explore possible forgiveness of deferred tax, including legislation. Exploration is not forgiveness, and the order says the Transportation Department should continue compliance enforcement allowed by law.
What happens next is Treasury guidance identifying the relief, covered taxpayers, conditions and the date any postponed taxes must be paid. Farmers, truckers and fuel sellers can inspect the order's sections 2 and 3 while awaiting that guidance; the order supplies no basis to assume a lower pump price or an immediate tax saving.