Restoring Economic Diesel Fuel Act of 2026

This legislative proposal aims to amend the Internal Revenue Code of 1986 by eliminating penalties associated with the sale and use of dyed fuel for taxable purposes. Currently, federal law imposes penalties under section 6715 for using or selling dyed diesel fuel in applications that are subject to federal fuel taxes, such as for on-road vehicles. The bill specifically directs the striking of this section, thereby removing these particular penalties. Furthermore, the legislation includes necessary conforming and clerical amendments to update other parts of the tax code affected by the removal of section 6715. These changes are designed to take effect for all fuel sold or used on or after December 31, 2025 .