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, including direct payments to providers and protections against service discontinuation during specific periods for those in the winter protection program.

Furthermore, the bill includes several amendments regarding home heating credits and weatherization assistance. It specifies that only renters or lessees can claim credits for rented or leased homesteads, with a limit of one credit per household, and excludes full-time students claimed as dependents from eligibility. The bill also requires that eligible claimants be referred for weatherization assistance and mandates that heating fuel providers reach out to high-usage claimants for free home energy analyses. Enforcement mechanisms for providers, the credit claiming process, and conditions for credit exemption from debt collection processes are also detailed. The department is tasked with conducting annual studies on heating costs and reporting on the effectiveness of assistance programs, while ensuring that the credit is contingent upon federal funding for the low-income home energy assistance program.

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