The bill amends the Income Tax Act of 1967, specifically section 527a, to introduce a heating fuel cost credit 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 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 mandates that heating fuel providers inform customers about the credit and outlines the process for remitting credits to claimants, including energy drafts and protections against service discontinuation during certain periods.

Additionally, the bill includes several amendments related to home heating credits and weatherization assistance, such as stipulating that only renters or lessees can claim credits for rented homesteads and that full-time students claimed as dependents are ineligible. It requires eligible claimants to accept available weatherization assistance and mandates heating fuel providers to conduct free home energy analyses for high-usage customers. The bill also simplifies the credit claiming process, requires annual studies on heating costs, and exempts the credit from debt collection processes. Notably, it reinforces obligations by replacing "shall" with "must" in various instances throughout the text.

Statutes affected:
Senate Introduced Bill: 206.527