Fuel Tax Relief for Areas Hit by Hurricane Helene

The federal government and some state governments have issued fuel tax relief in areas worst affected by Hurricane Helene. This response is designed to ensure the swift and efficient transportation of fuel needed for recovery efforts across the Southeastern U.S.

IRS Dyed Diesel Penalty Relief

The IRS has issued dyed diesel penalty relief in response to Hurricane Helene. From September 26, 2024, through October 15, 2024, no penalty will be imposed if dyed ULSD (ultra-low sulphur diesel — diesel with a sulphur level under 15 parts per million) is sold for on-highway use in Alabama, Georgia, North Carolina, South Carolina and certain counties in Florida, Tennessee and Virginia. The penalty relief is available to anyone selling or using dyed diesel for highway use. In the case of the operator of a vehicle, the relief is available only if the operator or the person selling such fuel pays the tax of $0.244 per gallon that is applied to diesel fuel for highway use.

In addition, the IRS will not impose penalties for failure to make semi-monthly deposits of federal excise tax in connection with dyed diesel sold for on-highway use during the relief period.

IFTA and Excise Tax Penalty Waivers in Alabama

Meanwhile, Alabama is waiving its motor fuel excise tax and International Fuel Tax Agreement (IFTA) registration requirements: The Department of Revenue has temporarily suspended the motor fuel exporter, importer and transporter licensing requirements for exporters, importers or transporters supporting disaster relief efforts by engaging in the export of motor fuel to areas in other states impacted by Hurricane Helene for which a state of emergency or disaster has been declared, or the import of motor fuel into areas in Alabama for which a state of emergency or disaster has been declared. Note that only the license requirements are suspended, not tax requirements.

The Department has also temporarily suspended the requirements under the International Fuel Tax Agreement (IFTA) for any motor vehicle engaged in interstate disaster relief efforts resulting from Hurricane Helene that is traveling through Alabama as part of the disaster relief.

The temporary suspensions are effective until October 27, 2024. For more information about the federal and state relief efforts associated with Hurricane Helene, contact us.

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