On October 5, 2026, President Trump issued Executive Order, Emergency Tax Relief on Diesel Fuel and on October 14, 2026, the Internal Revenue Service provided additional guidance on that Order.

The IRS stated that it will not impose a penalty when dyed diesel is sold for use or used on highways nationwide from October 1, 2026, through December 31, 2026. 

To align state enforcement practices with federal guidance and support Ohio's agriculture and transportation sectors, Governor Mike DeWine issued Executive Order 2026-05D on October 21, 2026. 

Although Ohio law (R.C. 5735.124) does provide for penalties for selling, distributing, or using dyed diesel fuel on public highways or waterways, the law also gives the Tax Commissioner the express authority to reduce or waive any assessed penalty. Using that authority, during the period of IRS penalty relief, the Commissioner will not impose these penalties.  

The Ohio Department of Taxation will provide any updated information and guidance on this important initiative and the motor fuel tax holiday on its website at https://tax.ohio.gov/motor-fuel-tax-holiday.   

 Please contact Taxation at 1-855-466-3921 with any questions.