Congressman Don Davis is asking the IRS to grant North Carolina the longest available period of federal penalty relief for highway use of dyed diesel fuel. His October 2, 2026, announcement describes a request—not an IRS decision. It does not say whether the agency has granted relief, how long it might last, or what conditions would apply.
What Davis asked the IRS to do
Davis, who represents North Carolina’s 1st Congressional District, urged the IRS to use authority he identifies as IRM 25.16.1.5 to provide the longest available period of federal penalty relief for highway use of dyed diesel in North Carolina. The release does not explain the authority’s scope or the mechanics of the penalties, so it does not establish who would qualify or what uses would be covered.
Davis’s office said the complete letter was available, but the linked letter could not be retrieved. The release therefore does not establish the letter’s precise wording or the date it was sent. Davis said, “The growers cannot afford to wait for the cost of diesel to decline.”
Why Davis says farmers need relief
The release frames the request around high diesel costs during harvest season and drought-related pressure in Eastern North Carolina. It says farmers need highway diesel to move crops, livestock, and equipment over long distances.
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Diesel prices cited in the release
According to the release, AAA put North Carolina’s average diesel price at $6.2473 per gallon on September 19, 2026, compared with $3.46 a year earlier. It also reports a national on-highway diesel average of $6.529 per gallon for the week of September 21, 2026. These are figures as reported by Davis’s office; the underlying AAA publications were not available to independently confirm them.
Fuel-cost projection and drought
The release attributes to USDA a projection that, as of September 3, 2026, farm-sector fuel and oil expenses would increase by $4.8 billion, or 28.8 percent. It also says USDA designated more than a dozen counties in the region as primary natural disaster areas because of drought in July. The announcement does not identify those counties or provide the underlying USDA publications.
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What is—and is not—known about state actions
Davis’s release says at least 10 governors had suspended or relaxed penalties for highway use of dyed diesel in their states. It does not identify the states, describe their measures, or give effective dates. The claim should not be read as evidence that those states took identical actions or that North Carolina has adopted a comparable measure.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What farmers should watch for next
The announcement does not confirm an IRS response. Until the IRS issues a decision or further details become available, the request alone does not establish a change in penalties, an effective period, eligibility rules, or covered fuel uses. Farmers and businesses should not treat the announcement as confirmation that relief is in effect.
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