Relief at the Pump While Protecting NC Transportation Funding

CHARLOTTE, N.C., Oct. 9, 2026 /PRNewswire/ -- The North Carolina General Assembly passed legislation Wednesday, Oct. 7, to temporarily suspend the state's 41-cent-per-gallon motor fuel tax through Nov. 30, 2026, while protecting critical transportation funding. The legislation now goes to the Governor, who has 10 days to sign or veto the bill. If no action is taken, the bill automatically becomes law.

When Carolinas AGC (CAGC) learned earlier this week that lawmakers would convene a special session to consider the gas-tax suspension, the Association's top priority was ensuring that the NC Department of Transportation (NCDOT) would not lose critical funding for road construction and maintenance. The legislation accomplishes that goal, requiring the state to replace an estimated $362.3 million in lost motor fuel tax revenue with funds from the state's Inflation Reserve.

Key provisions of the legislation include:

• Temporary gas-tax suspension: Suspends the motor fuel tax on gasoline, diesel and alternative fuels beginning the day after the bill becomes law and continuing through Nov. 30, 2026.
  
  
• Protection of transportation funding: Requires monthly transfers from the Inflation Reserve to replace lost motor fuel tax revenue, protecting NCDOT and other affected funds.
  
  
• Consumer savings: Requires that savings from the tax suspension be passed along to consumers, with exceptions for fuel purchased by retailers before the suspension takes effect.
  
  
• Agricultural and commercial exemptions: Provides temporary tax exemptions and penalty relief for certain uses of dyed diesel fuel by qualifying farmers, commercial loggers, commercial fishermen and wildlife managers through Dec. 31, 2026.
  
  
• 2027 gas-tax rate: Ensures the temporary suspension will not affect calculations used to establish the motor fuel tax rate for 2027.

Read CAGC's previously released position and call to action regarding the proposed gas-tax suspension.

"The gas-tax suspension will cost $362.3 million through Nov. 30th, and we are very appreciative and thankful that the NC General Assembly is covering this bill with the state's 'stabilization and inflation' reserve to protect the NC Department of Transportation's road construction program," said Dave Simpson, CAGC President & CEO.

What to Expect: North Carolina House Speaker Destin Hall has indicated that motorists could see savings of approximately 30 to 35 cents per gallon. State officials have consumer-protection and price-gouging laws available to help ensure savings are passed along to consumers. Lawmakers are expected to monitor fuel prices and could consider extending the suspension when they reconvene in November.

Carolinas AGC is the construction industry association in the Carolinas, bringing value to our thousands of members through networking, government relations, job leads, meetings with owners/designers, education and training involving such issues as safety and open shop, and community development. Visit us at www.cagc.org, connect with us on Twitter, Facebook, YouTube, and LinkedIn.

Media Contact: Lori McGovern,[email protected].

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SOURCE Carolinas AGC