Federal Diesel Tax Deferral: What EO 14435 Directs
When Texas suspended its dyed-diesel road ban on September 28, 2026, the federal dyed-fuel penalty stayed in place, because a Governor cannot suspend a federal statute. Executive Order 14435, signed October 5 and published in the Federal Register on October 9, 2026, directs the Treasury Secretary and the IRS to reach exactly that gap: deferral of federal diesel excise tax incurred October 5 through December 31, 2026, and an announcement that the dyed-fuel penalty will not be imposed on highway sale or use during that window. Two things matter as much as the order itself. The relief is conditioned on Treasury determinations and guidance, and a deferral is a postponement rather than a forgiveness. Here is what the order directs, who in Texas it reaches, and what a Texas attorney can review.
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