SB 118 DYED AGRICULTURAL DIESEL FUEL TAX CREDIT

Sen Gregory Baca

Actions: [1] SCC/STBTC/SFC-SCC

Scheduled: Not Scheduled

 Senate Bill 118 (SB 118) exempts dyed diesel fuel used for agriculture from Gross Receipts and Compensating Tax. 

 Senate Bill 118 (SB 118) exempts from Gross Receipts Tax and Compensating Tax receipts from selling and use of dyed diesel that is used for agricultural purposes. 

This special fuel (dyed diesel) is not used in motor vehicles operating on highways and is deductible from the special fuel tax if dyed in accordance with federal regulations.

The Taxation and Revenue Department (TRD) will compile an annual report with information necessary to evaluate the credit. The report will be presented to relevant interim committees with a cost analysis of the credit. 

SB 118 includes a delayed repeal date of July 1, 2029. The effective date of this bill is July 1, 2024.
 

 Special fuel (dyed diesel) is subject to GRT and CT regardless of purpose. It is exempt from excise taxes.