Update on fuel refund program for ag producers

Beginning the week of Aug. 26, the Washington State Department of Licensing (DOL) will begin taking applications for refunds for ag producers who paid taxes related to the state’s cap and trade program on fuel purchases. The DOL circulated a letter recently containing the following information:

What Is the Agriculture Support Program (ASP)?
The ASP is a funding opportunity for agricultural producers and transporters who have purchased fuel between Jan. 1, 2023, and Dec. 31, 2023. The state’s Climate Commitment Act exempts fuels used for agricultural purposes, such as diesel for tractors and trucks moving produce. Agriculture fuel users who qualify for this
exemption can apply for payments between $600 to $4,500.

When Will This Take Place?
The Department of Licensing will begin issuing ASP payments in September 2024. The application will be available in the week of Aug. 26, 2024. Don’t delay. Due to limited resources, applications will be processed in the order they arrive.

What Can You Do Now?
The application will include several questions to determine if you will be eligible. You can begin now to collect information that helps you answer the following types of questions:

  • Did you purchase and use fuels for agricultural purposes between Jan. 1, 2023, and Dec. 31, 2023?
  • Can you estimate how many gallons you used for agricultural purposes during this time period?
  • Are you able to prove that you are an agricultural producer or transporter?

DOL will provide additional information and details by early August, including the types of documents you will need for your ASP application. We’re excited about this opportunity and look forward to sharing more soon!