The bill amends the Income Tax Act of 1967, specifically section 527a, to enhance the heating fuel cost credit provisions for Michigan residents. 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 are eligible for the credit. The bill also clarifies the responsibilities of heating fuel providers, requiring them to inform customers about credit availability and provide necessary information for credit determination.

Additionally, the bill introduces several amendments, including the stipulation that heating fuel providers must pay interest on credits without seeking reimbursement from the department. It limits the credit to one per household and specifies that full-time students claimed as dependents are ineligible. Eligible claimants are required to accept available weatherization assistance, and heating fuel providers must offer free home energy analyses to high-usage customers. The department is tasked with mailing home heating credit returns to those receiving assistance, 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 protected from legal debt collection processes, with annual reports on program effectiveness required for legislative committees.

Statutes affected:
Substitute (S-2): 206.527
Senate Introduced Bill: 206.527