TAX FILE: Look for lower taxes on watered-down diesel

April 1, 2003
If Congress changes Highway Trust Fund taxes this year, it's likely to fold those changes into the bill that will replace the spending authorization that expires September 30. But the House Ways and Means Committee got off to an early start on one change. In late February, the Committee voted to lower the rate on diesel fuel that's blended with at least 14% water. The rate would have been reduced

If Congress changes Highway Trust Fund taxes this year, it's likely to fold those changes into the bill that will replace the “TEA-21” spending authorization that expires September 30. But the House Ways and Means Committee got off to an early start on one change. In late February, the Committee voted to lower the rate on diesel fuel that's blended with at least 14% water. The rate would have been reduced from 24.3¢/gal. to 19.7¢, reflecting the lower energy content of the blend. The provision was initially included in a package of tax breaks for reservists and National Guard who are mobilized. After growing criticism for loading “Christmas tree” provisions onto a bill meant to help the armed forces, House leaders sent it back to committee. Nevertheless, the “watered down” diesel tax rate is likely to resurface in the TEA-21 replacement bill.

About the Author

KEN SIMONSON

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

What challenges are top of mind for fleet professionals in 2025? Get exclusive insights from the 2025 Fleet Trends Survey and discover where the industry is headed next.
The most successful fleets accomplish more than delivering freight. To accomplish this, fleets need a fuel that’s reliable, more economical and more sustainable. That fuel is ...
Are your KPIs driving real fleet improvement? Learn how to set smarter, data-driven benchmarks, track success like top-performing fleets, and apply proven strategies to optimize...
Learn how eets can enhance truck utilization and minimize safety incidents using business intelligence and AI. Delve into innovative practices, technology integration and real...