The Illinois Department of Revenue (IDOR) has released guidance on Governor Pritzker’s October 6 executive order on the on-road use of dyed diesel. The order covers qualifying farming and agricultural use through December 31, 2026, and IDOR’s Informational Bulletin FY 2027-07 explains how the state will handle it.

 

The bulletin describes which uses are covered, how the state motor fuel tax applies, and the records users must keep, including steps to document residual dye in fuel tanks after December 31. Normal enforcement resumes January 1, 2027. Members should review the bulletin in full, as eligibility is limited and recordkeeping requirements apply.

 

On the federal side, the President’s October 5 order directs the U.S. Treasury to determine whether federal excise taxes on dyed diesel used on highways can be deferred. The order does not forgive the tax. Federal implementation guidance remains pending.

 

Because some details remain unresolved, members should carefully weigh potential implications before making any changes to normal fueling practices. IFCA will continue to monitor developments and share additional information as it becomes available.