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, the Nebraska Ag Use Motor Fuels Tax Refund Claim, Form 84AG only applies to state taxes. However, while in Nebraska on October 5, 2026, President Donald Trump signed an Executive Order to lower diesel costs for American truckers and farmers. This clears the path for the temporary use of dyed diesel for highway use and deferral of the applicable federal excise tax. Information about the President's executive order can be found on the White House website.

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.

While in Nebraska on October 5, 2026, President Donald Trump signed an Executive Order to lower diesel costs for American truckers and farmers. This clears the path for the temporary use of dyed diesel for highway use and deferral of the applicable federal excise tax. Information about the President's executive order can be found on the White House website.

No, while EO No. 26-21 pertains to state law taxes and penalties, President Donald Trump signed an Executive Order that provides for the temporary use of dyed diesel for highway use and deferral of the applicable federal excise tax.

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.

Agricultural product includes the transportation of livestock, feed for the livestock, grain, fertilizer, seed, and crop protection used on the farm for agricultural purposes.

Agricultural products includes the delivery of inputs to the farm.  This includes distilled grain, a by-product of ethanol and  hauling fuel and propane to the farm.  

Post-processing products, such as boxed beef, corn oil, and ethanol do not qualify.  

Farms also include dairy and poultry operations.

See question above. The fuel used to transport distilled grain and livestock feed that will be used on the farm for commercial agricultural purposes qualifies. 

If, after processing, it is still used in the commercial agricultural process it will continue to qualify. For instance, distilled grain used for feed qualifies. Fuel used to transport post-processed products such as corn oil and ethanol would not qualify.

• A field to storage, processing, or market;
  • Yes.
• Farm or commercial storage to processing or market;
  • Yes.
• A processing facility to a customer or storage location;
  • No, unless it is used in the agricultural process by that customer.
• One Nebraska facility to another; 
  • Transportation of an agricultural product from one Nebraska facility to another would qualify.
•  A Nebraska origin to an out-of-state destination?
  • Yes, but only miles within Nebraska count.
     

Yes.

It applies to that third-party carrier.

The party that purchased and used the fuel qualifies for the refund.

Tax Commissioner Kamm has requested similar IRS penalty relief. 

While in Nebraska on October 5, 2026, President Donald Trump signed an Executive Order to lower diesel costs for American truckers and farmers. This clears the path for the temporary use of dyed diesel for highway use and deferral of the applicable federal excise tax. Information about the President's executive order can be found on the White House website.

The Internal Revenue Service has announced that, in response to President Donald J. Trump’s October 5, 2026, Executive Order, Emergency Tax Relief on Diesel Fuel, it will not impose a penalty when dyed diesel fuel is sold for use or used on highways nationwide.

The relief is retroactive to October 1, 2026, and will remain in effect until December 31, 2026. Relief is available to any person that sells dyed diesel fuel or uses dyed diesel fuel for highway use. 

No, the federal fuel tax and any federal environmental fees are not waived.

While in Nebraska on October 5, 2026, President Donald Trump signed an Executive Order to lower diesel costs for American truckers and farmers. This clears the path for the temporary use of dyed diesel for highway use and deferral of the applicable federal excise tax. Information about the President's executive order can be found on the White House website.

For federal tax information and guidance, please contact the IRS.

While in Nebraska on October 5, 2026, President Donald Trump signed an Executive Order to lower diesel costs for American truckers and farmers. This clears the path for the temporary use of dyed diesel for highway use and deferral of the applicable federal excise tax. Information about the President's executive order can be found on the White House website.

Taxpayers may, but are not required to, flush their tanks after the harvest period is over.

The State understands there may still be traces of the fuel in the tank after the 90 day period. With additional fill-ups, that should dissipate and will be taken into consideration if an issue is presented.

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.

Also see the answers below regarding supporting records. 
 

See Nebraska State Patrol/Carrier Enforcement Division website, or call 402-471-0105.
 

The Nebraska Ag Use Motor Fuels Tax Refund Claim, Form 84AG, may be used to request a refund for qualified fuel under EO 26-21. While the form was designed for and commonly used for claiming the refund of tax on fuel used in unlicensed equipment, it will be accepted for purposes of EO 26-21.

Just as you would on a normal refund claim, you will need to keep records that prove that the miles traveled were used to haul agricultural products.

Taxpayers must include with the refund claim:

• Records required on the Form 84AG instructions
• Mileage logs, with odometer readings, the date of the trip, trip details, the product transported and a determination as to how many gallons were used that would qualify for a credit.

If all miles driven for a vehicle do not qualify for EO 26-21 refund, calculate the Total Gallons in the Refund Calculation section by dividing the qualifying miles by that vehicle’s miles per gallon. Do this for each vehicle being claimed. Enter the total of all vehicles in the Total Gallons column.
 

All Nebraska miles while hauling Nebraska sourced agricultural products qualify for the refund. The Nebraska miles on the return trip count only if nonqualifying products are not hauled on the return trip.

Taxpayers should keep and have available, if requested, mileage logs, with odometer readings, the date of the trip, trip details, the product transported and a determination as to how many gallons were used that would qualify for a credit.

If all miles driven for a vehicle do not qualify for EO 26-21 refund, calculate the Total Gallons in the Refund Calculation section by dividing the qualifying miles by that vehicle’s miles per gallon. Do this for each vehicle being claimed. Enter the total of all vehicles in the Total Gallons column.
 

The normal three-year statute of limitation applies. In this situation, it is three years from the date of use. The date of use must fall within the 90-day period. 

One refund claim may be filed for the entire 90-day period. Taxpayers can only file one Form 84AG per month. In this case, a taxpayer may file one regular Form 84AG and one EO 26-21 Form 84AG per month.
 

Clearly write “EO 26-21” on the top of the claim.

Yes. Completing these sections will assist in verifying eligibility for Executive Order 26-21. If you are filing the claim as a commercial carrier of Nebraska sourced agricultural products rather than as a Nebraska agricultural producer, attach a description of your company’s operations on a separate piece of paper.

A refund claim may be filed for undyed diesel and dyed diesel used in accordance with Executive Order 26-21. Compressed fuels and motor vehicle fuels (gasoline, gasohol, and ethanol) are not covered by Executive Order 26-21.

For purposes of Executive Order 26-21, cross-out the gasoline description on the Form 84AG and write in “Dyed Diesel.”

You should claim the refund based on the Nebraska tax in effect at the time the fuel was purchased. Undyed diesel purchased in 2026 was taxed at $0.318 per gallon. Effective October 1, 2026, dyed diesel purchases are taxed at $0.0025 per gallon.

The one cent statutory reduction from the fuel tax paid on diesel purchases used in unlicensed equipment does not apply to the refunds requested under Executive Order 26-21.

Yes, motor fuels licensees that use fuel in a qualifying manner that paid tax on the Motor Fuels Tax return must deduct the commission previously received on the return. Taxpayers will not receive more back from the DOR then the tax that was remitted to the state on these gallons.

The statutory requirement of $25 minimum that applies to diesel fuel refunds does not apply to refunds requested under Executive Order 26-21. However, warrants will not be issued for refunds of less than $2.