Article
Brochure
Executive Resource
Insight Hub
Ext. Publication
VideoMotor Fuels Tax Minute Episode 107: Federal Fuel Tax Suspension & the Jones Act
Never miss a thing.
Sign up to receive our Tax News Brief newsletter.
In this episode of Motor Fuels Tax Minute, Leanne Sobel and Kelly Grace discuss recent developments and proposals around federal and state motor fuel tax suspensions and what they could mean for fuel distributors and taxpayers. They explain why most suspension efforts stall, what signs indicate real movement at the federal level and why dyed diesel and other fuel-related waivers may be more likely than broad tax changes.
For information or assistance, contact us. We are here to help.
©2026
Detailed Description of Weaver’s Motor Fuels Tax Minute, Episode 107
00:00:00
Kelly: Welcome to this week’s Motor Fuel Tax Minute, where we talk all things motor fuels. We’ve been talking to you, and you’ve probably been seeing a lot of noise surrounding all these state suspensions, potential state suspensions.
00:00:12
Kelly: We even started hearing a potential federal tax suspension. We’ve seen it happen with hurricanes with regards to how dyed diesel is treated and all that good stuff. But this could be at a higher level.
00:00:23
Kelly: What are your thoughts, Leanne, on this? Is there a risk that chaos is going to ensue?
00:00:29
Leanne: Well, there’s always a risk of chaos. But the federal tax hasn’t changed since the 1980s. So my initial gut reaction is keep calm and carry on.
00:00:40
Leanne: There are proposals out there to suspend the federal gas tax in the wake of some world events and the increase in current gas prices. But quite honestly, this comes around every year, every couple of years. Anytime somebody’s up for election, we see this type of legislation.
I would say until we see something actually pass either the House or the Senate that really then looks like it’s moving, we’re probably not going to get any change in the federal gas tax or the diesel tax.
00:01:10
Leanne: If something comes out of committee, makes it to the House floor, then I’m going to pay attention. I’m always paying attention anyway, but that’s when you’re going to see me posting. That’s when I’m going to be talking to all the other consultants and we’re going to be thinking, is it actually going to happen this time?
But for now, I would say keep an eye on it. You never know. This might be the year, but I’m skeptical.
00:01:30
Kelly: And it’s probably fair to be skeptical. Things have not been moving too quickly through Congress in general.
00:01:37
Leanne: That is true. We do still have certain parts of the government shutdown, which makes me less inclined to say they’re going to pass a gas tax suspension. There are potentially other more pressing things that need to be addressed first.
But never say never, and certainly look out for things like dyed diesel waivers.
00:01:54
Leanne: There was a Jones Act waiver that has allowed foreign-flagged vessels to move primarily fuel between two ports in the United States. That’s a whole separate Motor Fuels Tax Minute regarding the Jones Act.
00:02:08
Leanne: But that waiver could lead to other waivers rather than suspensions. And the government has the authority to waive the dyed diesel rules. So I think if we’re getting anything, it might be that.
00:02:18
Kelly: And I love that you brought that up, and I will shout it out for you, Leanne. Leanne has a great write-up on LinkedIn about the Jones Act and the suspension.
00:02:25
Kelly: It kind of gives a pretty high level overview. I know it’s an area that we’ve all probably heard about, but now it’s really becoming part of the news.
It’s a great way to catch up quickly on what’s going on. So check out Leanne’s LinkedIn page. I’m sure if I shared it, it’ll be on mine as well.
00:02:40
Kelly: But once again, thank you for joining us, everyone. We’ve seen other states have proposals and other stuff moving. Likely, we won’t really emphasize those too much until things get closer to the finish line or reach the finish line in the middle of the day.
00:02:53
Kelly: So thank you again, everyone, for joining us for this week’s Motor Fuels Tax Minute. Hope to see you next time.
