Nebraska taxpayers who transport Nebraska-sourced commercial agricultural products on the state's highways and public roads can claim motor fuels tax relief under Executive Order No. 26-21, the Nebraska Department of Revenue said.
The order is effective from September 24, 2026, through December 23, 2026. Qualified diesel used during the 90-day period is eligible for a refund of the Nebraska motor fuel tax paid on undyed diesel.
Agricultural products covered include the transportation of livestock, grain or other seasonally harvested products from the field where they are harvested to storage, market or stockpile, including return trips. The relief also applies to personal vehicles used to haul Nebraska agricultural products, but personal use miles do not qualify for a refund.
The relief also includes a refund of the $0.0025 per gallon tax paid on dyed diesel purchased beginning October 1, 2026, as part of LB815. The dyed diesel penalty relief applies only to Nebraska penalties, not federal penalties. The Tax Commissioner has sent a request to the Internal Revenue Service asking for the same dyed diesel fuel penalty relief at the federal level.
To claim the refund, taxpayers must file a Nebraska Ag Use Motor Fuels Tax Refund Claim, Form 84AG, with the department. Taxpayers must write "EO 26-21" at the top of the form and may cross out "Gasoline" in the Refund Calculation section and write in "Dyed Diesel" for the dyed diesel refund. Supporting documentation must substantiate the tax paid on fuel used and document the transportation of Nebraska agricultural products.
Taxpayers registered under the International Fuel Tax Agreement who transport Nebraska-sourced agricultural products within Nebraska using tax-paid undyed diesel may report qualified Nebraska miles as nontaxable miles on their IFTA return to obtain a credit for the associated Nebraska miles. They can contact the Nebraska Department of Motor Vehicles, Motor Carrier Division at 402-471-4436 for more information.