Red Diesel

Copy and paste. I can't see any advantage of using red fuel if this is what you have to do. Any tax costs would have to be paid anyway and with a huge headache with record keeping. I see lots of fines coming in January.

IMPORTANT UPDATE: RED-DYED DIESEL IN ILLINOIS

This weekend, the Illinois Department of Revenue (IDOR) has released guidance regarding the temporary use of red-dyed diesel in on-road vehicles for agricultural purposes.

Farmers choosing to take advantage of this temporary penalty relief should understand the documentation requirements.

KEY DATES
• October 6 – December 31, 2026: Temporary penalty relief period.
• January 1, 2027: Normal enforcement resumes.
• FOUR YEARS: Required documentation must be retained for four years following expiration of the Executive Order.

WHAT RECORDS MUST YOU KEEP?
For dyed diesel used during the relief period:
• Vehicle license plate number
• Gallons of dyed diesel used
• Dates of each fill-up
• Date dyed diesel was last added
• Proof of agricultural use, such as:
o Grain tickets or storage receipts
o Invoices for agricultural goods
o Trip sheets
o Bills of lading or waybills
o Transportation contracts
o Documentation showing the origin of agricultural goods

WHAT ABOUT RESIDUAL RED DYE?
Red dye can remain in fuel tanks even after switching back to clear diesel.

To help avoid penalties after January 1, maintain:
• Vehicle odometer reading on December 31, 2026
• Receipts for all fuel purchased after dyed diesel use ends
• Documentation proving agricultural use during the relief period

IMPORTANT REMINDERS
• Missing documentation during an audit may result in penalties.
• Illinois' penalty relief does NOT extend to other states.
• Temporary penalty relief does NOT permanently eliminate fuel tax obligations.
• Additional federal guidance from the IRS is still pending.

ILLINOIS FARM BUREAU'S RECOMMENDATION:
If you choose to use red-dyed diesel in on-road trucks for agricultural purposes, DOCUMENT EVERYTHING and have a plan to transition back to clear diesel.

Champaign County Farm Bureau will continue monitoring developments and sharing updates as information becomes available.

We encourage members to review the full IDOR Informational Bulletin before using dyed diesel in on-road vehicles. LINK IN COMMENTS.
 

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