2023 hute grant - highway use tax evasion. Intergovernmental efforts. Implementation

The Federal Highway Administration awarded the North Carolina Department of Transportation $1,172,300 on June 29, 2026, under the Fuel Tax Evasion-Intergovernmental Enforcement Effort program (CFDA 20.240) to support highway use tax evasion detection and compliance efforts through June 2028.

The recipient will hire additional support staff for North Carolina's participation in the Joint Operations Center for National Fuel Tax Compliance, a joint operation with the Internal Revenue Service. The grant also funds expanded audit and enforcement work and continued collaboration with neighboring states to identify areas of non-compliance. Funding supports workforce development and quality management, motor fuel examinations, investigations operations, critical system upgrades, and program maintenance.

Performance occurs in North Carolina. The assistance type is a project grant. The program's purpose is to increase intergovernmental activities and enforcement efforts among public agencies to reduce federal and state fuel tax evasion.

Project description

The 2023 highway use tax evasion (HUTE) grant is administered by the north carolina department of revenue (NCDOR). Funding is used for workforce development and quality management, motor fuel examinations, investigations operations, critical system upgrades and program maintenance. This grant includes three primary activities. First is to hire additional support staff for the state's participation in the joint operations center for national fuel tax compliance (JOC) with the internal revenue service (IRS). The second is to fund additional work in the areas of audit and enforcement. Finally, work would be continued with neighboring states to identify areas of non-compliance.