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Tax Refund for Dyed Fuel: New Payment System for Diesel and Kerosene Distributors.

This legislation creates a new system for businesses to recover federal excise taxes paid on diesel fuel or kerosene. The refund applies specifically when the fuel is subsequently dyed for tax-exempt uses, such as farming or heating. This change simplifies the process for distributors to reclaim taxes previously paid on the fuel.
Key points
Introduces a direct payment mechanism for distributors who dye fuel, allowing them to recover the previously paid federal excise tax.
This applies only to diesel and kerosene designated as 'eligible indelibly dyed fuel' for tax-exempt purposes (e.g., off-road use).
The goal is to streamline the tax recovery process for fuel distributors.
The new rules will take effect 180 days after the law is enacted.
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Additional Information
Print number: 118_S_1692
Sponsor: Sen. Baldwin, Tammy [D-WI]
Process start date: 2023-05-18
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

A bill to amend the Internal Revenue Code of 1986 to allow for payments to certain individuals who dye fuel, and for other purposes.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1692.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-05-18.

What are the main provisions?

Key points include:

  • Introduces a direct payment mechanism for distributors who dye fuel, allowing them to recover the previously paid federal excise tax.
  • This applies only to diesel and kerosene designated as 'eligible indelibly dyed fuel' for tax-exempt purposes (e.g., off-road use).
  • The goal is to streamline the tax recovery process for fuel distributors.
  • The new rules will take effect 180 days after the law is enacted.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Baldwin, Tammy [D-WI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes