Relating to a credit or refund for diesel fuel taxes paid on diesel fuel used in this state by auxiliary power units or power take-off equipment.

Contracts

• Full-Service Leases: Review agreements immediately. If the lessor pays for fuel/tax, the lessor owns the credit. You must renegotiate to pass this tax benefit through to your organization.
• Telematics/Vendor Agreements: Update service level agreements (SLAs) with telematics providers (e.g., Geotab, Samsara). You require a guarantee that their reporting tools can isolate "PTO Active" fuel burn from general "Idling." Standard idling reports are insufficient for tax substantiation.

Hiring/Training

• Fleet Management Training: Fleet managers must be trained to distinguish between *taxable idling* (driver comfort/HVAC) and *non-taxable PTO usage* (active pumping, mixing, lifting).
• Driver Protocols: Drivers of vehicles using manual PTO engagement must be trained to engage the PTO system strictly during work operations to ensure ECU data logs are accurate.

Reporting & Record-Keeping

• Refund Claim Workflow (Non-License Holders): Most businesses must implement a new workflow to aggregate fuel invoices and PTO data logs to file periodic refund claims (likely Form 06-106).
• Tax Return Modification (License Holders): Licensed suppliers/distributors must update tax software to utilize the specific line item for Section 162.227(d-1) credits.
• Audit Defense: You must retain digital data logs and calibration records for metering devices for four years. Data must explicitly separate propulsion fuel from auxiliary fuel.

Fees & Costs

• Hardware/Software Upgrades: While there are no new state fees, businesses opting for the "Metered Method" (to maximize refunds) may incur capital costs to retrofit vehicles with physical flow meters or upgrade telematics subscriptions to access ECU fuel data.