Revenue eBrief No. 079/26
17 April 2026
Relief for increase in carbon tax on farm diesel
Tax and Duty Manual Part 23-01-36 - Relief for increase in carbon tax on farm diesel - contains guidance on section 664A of the Taxes Consolidation Act 1997, which provides relief in respect of carbon tax paid on farm diesel in certain circumstances. The relief is available to an individual, partnership or company carrying on a trade of farming. The farmer may claim an additional income tax or corporation tax deduction for farm diesel that is equal to the difference between the carbon tax charged and the carbon tax that would have been charged had it been calculated at the rate of €41.30 per 1,000 litres.
The following updates have been included in the guidance:
- the extension of the current rate of the carbon tax component of Mineral Oil Tax (MOT) on farm diesel to 13 October 2026.
- a new section 5 to provide a step by step guide on how to make a claim for a deduction for carbon tax on farm diesel under section 664A.