Missouri-based carrier seeks refund of $11,016,644 in federal fuel excise taxes paid on refrigeration unit diesel from 2018-2021.
Prime Inc has filed a lawsuit against the IRS seeking a refund of $11,016,644 in federal fuel excise taxes paid on diesel used to power refrigeration units on its trailers. The company argues the fuel, which does not propel vehicles, qualifies as off-highway business use and should not be taxed as standard highway fuel.
The complaint, filed June 16, 2026, in the U.S. District Court for the Western District of Missouri, covers taxes paid between 2018 and 2021. Prime operates roughly 9,000 trucks and is one of the largest refrigerated carriers in the U.S. The federal fuel excise tax is currently 24.3 cents per gallon on undyed diesel.
The case hinges on whether diesel burned exclusively for refrigeration units, rather than vehicle propulsion, should be subject to the federal highway fuel tax. The outcome could set a precedent for other carriers claiming similar credits.