The bill amends the Income Tax Act of 1967, specifically section 527a, to establish 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 introduces new provisions for calculating the credit based on the number of exemptions claimed and mandates 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 sets forth that the maximum costs for heating fuel and total household resources will be adjusted annually according to the Consumer Price Index, and it outlines the responsibilities of heating fuel providers in notifying customers about the credit and assisting claimants.

Further amendments include stipulations that only renters or lessees can claim credits for rented homesteads, with a limit of one credit per household, and that full-time students claimed as dependents are ineligible for the credit. The bill also requires eligible claimants to accept available weatherization assistance and mandates heating fuel providers to offer free home energy analyses to high-usage customers. It assigns the department the responsibility of mailing heating credit returns, conducting annual studies on heating costs, and simplifying claiming procedures. The credit is contingent on federal appropriations, with provisions for reducing credits if funding is insufficient, and it ensures that credits are protected from debt collection processes. Lastly, the bill requires annual reports on the effectiveness of the assistance programs to be submitted to legislative committees.

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