What to Know About Clear Diesel for Equipment and Heating

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Clear diesel, also called off-road diesel, is dyed red to indicate it's exempt from highway fuel taxes. It's meant for farm equipment, construction machinery, and heating oil systems. You can burn it in home boilers and industrial furnaces, but using it in on-road vehicles risks big fines from the IRS. The price is often lower than regular diesel because of tax breaks, but it's the same fuel otherwise. Check local laws, because some areas ban its use in residential heating for emission reasons.