The bill amends the Income Tax Act of 1967, specifically section 527a, to revise the heating fuel cost credit provisions for Michigan claimants. It allows claimants to receive a credit for heating fuel costs related to their homestead, while excluding certain facilities such as adult foster care homes and nursing homes. The credit calculation will be based on a defined table that considers the number of exemptions claimed, and it mandates annual adjustments to ensure that individuals with household resources below 110% of the federal poverty income standards can access the credit. Additionally, the bill introduces requirements for heating fuel providers to inform customers about the necessary information for determining the credit and outlines the remittance process for credits, emphasizing timely payments and protections against service discontinuation during specific periods for those 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. The bill also requires property owners to contribute at least 25% of weatherization costs unless they qualify for assistance and mandates the department to refer eligible claimants for weatherization assistance. Enforcement mechanisms for heating fuel providers are established, including the mailing of home heating credit returns and annual studies on heating costs. The credit is contingent on federal appropriations, and claimants must file claims by September 30 following the tax year, with protections ensuring the credit is exempt from debt collection processes.

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