The bill amends the Income Tax Act of 1967, specifically section 527a, to create a heating fuel cost credit for homesteads in Michigan, explicitly excluding adult foster care homes, nursing homes, homes for the aged, and substance abuse centers from eligibility. It establishes a calculation method for the credit based on a specified table and ensures that claimants with household resources below 110% of the federal poverty income standards are not denied the credit. The bill also introduces new requirements for heating fuel providers, including notifying customers about the necessary information for credit determination and adjusting credit calculations for claimants whose heating costs are included in their rent. Additionally, it provides protections against the discontinuation of heating fuel service during certain periods for participants in the winter protection program.

Further amendments include stipulations that only renters or lessees can claim credits for rented or leased homesteads, with a limit of one credit per household, and that full-time students claimed as dependents are ineligible for the credit. The bill mandates that eligible claimants must accept available weatherization assistance and requires heating fuel providers to offer free home energy analyses to high-usage customers. It also establishes a simplified procedure for claiming credits, mandates annual studies on heating costs, and exempts the credit from legal processes for debt collection. The department is tasked with collaborating with stakeholders to improve claims processing and must report annually on the effectiveness of the assistance programs, ensuring clarity through key definitions related to claimants and heating fuel providers.

Statutes affected:
House Introduced Bill: 206.527