FAQs on September 24 Executive Orders
Yes, a licensed vehicle may use dyed/red diesel tax-free provided they do in fact haul agricultural product. If they never actually transport Nebraska agricultural product they would not qualify for this relief.
The exemption does apply to personal vehicles provided the vehicle is used to haul Nebraska agricultural product. If filing the Form 84AG, the farmer or rancher can only request a refund on the miles used related to hauling Nebraska agricultural product.
The $0.0025 per gallon tax paid on dyed diesel purchased beginning on October 1, 2026, as part of LB815 is eligible for a refund for the Nebraska miles traveled for agricultural purchases using the Nebraska Ag Use Motor Fuels Tax Refund Claim, Form 84AG and write EO 26-21 on the top of the form. The tax itself is not suspended.
Most of the impact would be to the Highway Trust Fund with an impact also on the Nebraska Ethanol Board’s Agricultural Alcohol Fuel Tax Fund and Motor Fuel Tax Enforcement and Collection Cash Fund.
No this will not include federal tax, only state tax refund.
Yes, agriculture producers are able to use dyed diesel for hauling agricultural products.
Enforcement of dyed fuel at the roadside will be based on movement of products specified under the order. Any diesel-powered vehicle being used to move agricultural products will be included. Any use of dyed fuel on Nebraska's roadways for uses other than those specified in the order will be subject to normal enforcement.
Yes, someone driving a diesel pickup or service truck to the field for harvest is covered.
Correct, the Executive Order only applies to Nebraska penalties. However, Tax Commissioner Jim Kamm has asked the IRS to provide the same federal penalty relief.
Producers will be able to drive on the interstate system. Nebraska Tax Commissioner Jim Kamm has asked the IRS to provide the same federal penalty relief.
Producers can also seek tax relief in that way. The taxpayer may use clear diesel, then file a Nebraska Ag Use Motor Fuels Tax Refund Claim, Form 84AG to request the refund.
Yes, for Nebraska miles traveled to transport Nebraska agricultural products, commercial livestock haulers are covered. Taxpayers who are registered under the IFTA program that transport Nebraska sourced agricultural products within Nebraska using tax-paid undyed diesel may report qualified Nebraska miles as nontaxable miles for the claimed period on their IFTA return to obtain a credit for the associated Nebraska miles.
Yes, if the distillers and/or gluten is being used to feed livestock.
No, these products are post-processing and do not qualify for exemption under the Executive Orders.
