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Executive Order 14435 has created a mixture of approaches to diesel taxes as 2026 winds down. At the state level, 14 states have suspended fuel taxes or waived enforcement in line with the federal changes, while other states have made clear they will keep collecting and enforcing fuel taxes as usual.

Whether you choose to take advantage of the program or not depends on a variety of factors in your business. However, wanting to use the program and being able to use it are two different things. Temporary programs like this one - announced suddenly and effective immediately - feel like urgent opportunities that must be taken advantage of, but when it comes to fuel and fleet operations, we think being intentional is the best approach. To make sure that you’re savings aren’t completely offset by penalties or damage later, it’s more important than ever to track and control your fuel.

Tracking every drop

Accurately tracking off-road and on-road diesel matters in normal circumstances: penalties for misuse can reach $10,000, and mis-allocated fuel can be taxed at $10 per gallon. Right now, the need for careful tracking and durable records is even greater. Federal fuel taxes have not been suspended entirely, so you will need to pay your accrued federal fuel taxes at the start of next year. If you rely on paper records or a spreadsheet you’ll somehow keep up to date, you’re setting yourself up for a major disappointment.

Whether you plan to put dyed diesel in your on-road trucks tomorrow or keep things as they are, now is a good time to make sure your record-keeping is solid. If you were audited tomorrow, what records could you give state or federal authorities to show your fuel use was accurate? If you switch to dyed diesel, how will you account for that use when your tax bill comes due in January? Answer these questions before you change your fueling operations.

Tank control

Fuel doesn’t get pumped by itself! Drivers will need to know about any new processes, which could mean updating access permissions or training drivers on new equipment. Even something as simple as ensuring sufficient clearance for new vehicles and equipment that will be using a dyed-diesel tank can make the difference between a smooth transition and a major catastrophe.

If you plan a wholesale switch to off-road diesel, you can simplify both the fueling process and transaction tracking by renaming or relabeling the tank in the FuelCloud web portal. Just remember to reset the tank’s name when business, and taxes, return to normal. That gives you a clean, complete transaction record while drivers keep using the equipment and processes they already know.

The Off-road Diesel Checklist

Ready to take advantage of the tax deferral program? Start with this checklist:

• Confirm the tax-exempt status of your tanks and vehicles. Know which sites and vehicles have always been exempt and which are temporarily using dyed fuel. This will make it easier to reset your fueling operations later.
• Consider making tanks exempt rather than individual vehicles. Large, single changes are easier to manage and produce cleaner records.
• Use driver controls. If you won’t switch your entire operation to dyed diesel, use driver controls to limit access to the drivers, vehicles, and jobs that will benefit most.
• Set up recurring reports. Automatically scheduled monthly (or weekly) reports will build the logs you need without interruption.
• Use custom data fields. Prompts at the pump can help you collect more information about off-road fuel use so you can capture the greatest benefit.

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