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IDR Releases New Guidance: Dyed Diesel Use Proclamation

Governor Kim Reynolds recently signed a proclamation to temporarily suspend state penalties and taxes for the sale and use of dyed diesel to transport certain agricultural products on public roads in Iowa. The Iowa Department of Revenue has released new tax guidance to explain this proclamation:

  • Dyed Diesel Use Proclamation
    The proclamation takes effect immediately and continues through February 4, 2027. Use tax may be due for dyed diesel fuel used during this period after the proclamation expires. Using dyed diesel in motor vehicles on public roads in Iowa for purposes other than those listed in the proclamation remains prohibited and subject to state penalties and taxes. 

This information was sent via GovDelivery to those subscribed to receive updates from the Department. To receive notifications of resources and guidance issued by the Department, subscribe to updates by selecting the tax topics of interest.

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