The bill amends the Income Tax Act of 1967, specifically section 527a, to enhance the heating fuel cost credit 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 specified table that correlates credit amounts with 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 are eligible for the credit. The bill also emphasizes the responsibilities of heating fuel providers, requiring them to inform customers about credit availability and the procedures for remitting energy drafts.

Additionally, the bill introduces several amendments to clarify existing provisions regarding home heating credits and weatherization assistance. It specifies that only renters or lessees can claim credits for rented or leased homesteads, limits claims to one per household, and establishes 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 conduct free home energy analyses for high-usage customers. Furthermore, it outlines the department's responsibilities for mailing credit returns, conducting annual studies on heating costs, and simplifying claiming procedures. The credit is contingent on federal appropriations for low-income home energy assistance and is exempt from debt collection processes, with annual reports on program effectiveness required for legislative committees.

Statutes affected:
Senate Introduced Bill: 206.527