Nebraska Waives Dyed Diesel Penalties for Ag Haulers
Nebraska Emergency Management Agency has posted guidance on Executive Order No. 26-21, which addresses an agricultural diesel fuel supply issue by giving carriers tax relief tied to hauling Nebraska-sourced ag products. The order runs from September 24 through December 23, 2026, a 90-day window.
Under the order, taxpayers who transport Nebraska livestock, grain or other seasonally harvested products on Nebraska highways, including interstate miles within the state, can file for a refund of Nebraska motor fuel tax paid on undyed diesel used in that hauling. The order also refunds the $0.0025-per-gallon tax on dyed diesel purchased starting October 1, 2026, under LB815, and relaxes Nebraska's own dyed diesel penalties for on-highway use during the period.
The penalty relief does not extend to federal dyed diesel penalties. Nebraska's Tax Commissioner has asked the Internal Revenue Service for matching federal relief, but no federal action is confirmed in the document.
Carriers must file Form 84AG with the Nebraska Department of Revenue, write "EO 26-21" on the form, and document the fuel tax paid and the ag loads hauled. IFTA-registered carriers can instead report qualifying Nebraska miles as nontaxable on their IFTA returns.
What's next
- 2026-12-23: Executive Order 26-21 and its tax relief expire.
- Watch for IRS action on the state's request for matching federal dyed diesel penalty relief.
All sources
- Agricultural Diesel Fuel Supply, Executive Order No. 26-21 Information — Government site: NEBRASKA EMERGENCY MANAGEMENT AGENCY (.gov), 2026-11-04
