The truth about the IFTA grace period: It’s not permission to miss the renewal deadline
A recent notice from the International Fuel Tax Association reminds motor carriers that the two-month grace period is for display of the new credentials, not to file the renewal application for those credentials.
To renew their license under the International Fuel Tax Agreement (IFTA) for 2024, carriers must file with their base jurisdiction before the end of 2023.
Why the grace period? In some jurisdictions, your new decals will arrive within a few days of submitting your renewal application. In others, they may take up to a month. To avoid the stress and keep your trucks on the road, file your renewal well ahead of the deadline.
What the grace period covers
Carriers renewing their IFTA license and decals have a two-month grace period (January and February) to display the renewal IFTA license and decals. To operate in IFTA jurisdictions during the grace period, carriers must display either:
- Valid current or prior year IFTA license and decals from their base jurisdiction, or
- A valid trip permitfrom the IFTA jurisdiction in which they are operating.
A note for early filers
Carriers renewing credentials may operate with the IFTA decals and license two months prior to the effective date shown on the credentials. For example, the renewed license and decals effective January 1, 2024, can be displayed beginning November 1, 2023.
Note that those carriers must still file a fourth quarter report for 2023.
Key to remember: For stress-free operation into the new calendar year, file your IFTA renewal application with your base jurisdiction well before December 31, 2023.