NC Dyed-Diesel Penalty Waiver Runs Dec. 31, Past Fuel-Tax Holiday
NCDOR's Excise Tax Division issued a notice on Oct. 12, 2026, detailing three separate effective-date windows created by Session Law 2026-62, signed by Gov. Josh Stein on Oct. 9. The law, based on House Bill 3 ("Relief at the Pump"), set the state's motor fuel excise tax at zero cents per gallon from Oct. 10 through Nov. 30, 2026, covering gasoline, diesel and alternative fuels.
Separately, the law waives civil and criminal penalties for highway use of dyed diesel for farming or agricultural purposes, and for anyone who dispenses dyed diesel into a highway vehicle's tank, from Oct. 9 through Dec. 31. A related provision exempts qualifying farmers, conditional farmers, commercial loggers, commercial fishermen and wildlife managers holding an NCDOR exemption certificate from excise tax on dyed diesel used in licensed highway vehicles, effective Oct. 1 through Dec. 31.
NCDOR said the suspension does not touch sales and use tax on dyed diesel or the separate inspection tax under N.C. Gen. Stat. § 119-18, both of which continue to apply. Users claiming the dyed diesel exemption must still file Form GAS-1259, the Motor Fuels Backup Return, even though no tax liability accrues.
What's next
- 2026-11-30: Motor fuel excise tax suspension ends; rate returns to 41 cents per gallon.
- 2026-12-31: Dyed diesel enforcement waiver and excise tax exemption for qualifying users expire.
- NCDOR says it will post additional guidance and an FAQ on administering Session Law 2026-62.
All sources
- Important Notice: Temporary Suspension of Motor Fuel Excise Tax and Dyed Diesel Enforcement — Government site: NCDOR (.gov), 2026-10-12
- House Bill 3 (Relief at the Pump Act), 2026 First Extra Session fiscal note — Government site: North Carolina General Assembly, 2026-10-10
