Farmers Hesitate on Dyed Diesel as IRS Waives Penalties but Leaves Tax Liability Unclear
President Trump’s executive order allowing dyed diesel on highways has not led to widespread adoption due to uncertainty over federal tax obligations. While the IRS waived penalties for the rest of 2026, it did not eliminate the underlying tax, causing farmers and truckers to avoid the cheaper fuel. State responses vary, with some governors suspending enforcement while others warn of future liabilities.