diesel tax

Prime Sues IRS for $11 Million Over Reefer Diesel Tax; Small Carriers Can Claim Same Credit

Prime Inc., a large refrigerated carrier, has filed a federal lawsuit against the IRS seeking a refund of $11 million in fuel excise tax paid on diesel used for reefer units. The carrier argues that reefer diesel is an off-highway use and thus nontaxable. The same fuel tax credit is available to any business, including small carriers and owner-operators, that burn taxed fuel for nontaxable purposes.