The bill amends the Income Tax Act of 1967, specifically section 527a, to introduce a credit for heating fuel costs for homesteads in Michigan, while explicitly excluding adult foster care homes, nursing homes, homes for the aged, and substance abuse centers from eligibility. It establishes that the credit will be calculated based on a specified table of exemptions, with annual adjustments to ensure that claimants with total household resources below 110% of the federal poverty income standards can access the credit. Additionally, the bill mandates annual adjustments to the maximum cost incurred for heating fuel and total household resources based on the Consumer Price Index.

Furthermore, the bill outlines the responsibilities of heating fuel providers, including notifying customers about the credit and providing necessary information for credit determination. It establishes procedures for credit remittance, protections against service discontinuation during certain periods, and consequences for providers who fail to issue timely payments. The bill also introduces amendments regarding eligibility, such as limiting credits to renters or lessees and excluding full-time students claimed as dependents. It mandates the department to refer eligible claimants for weatherization assistance and requires heating fuel providers to conduct free home energy analyses for certain customers, while emphasizing collaboration to improve the claims processing system.

Statutes affected:
House Introduced Bill: 206.527
As Passed by the House: 206.527