This bill amends the Income Tax Act of 1967, specifically section 527a, to refine the provisions related to the heating fuel cost credit for Michigan claimants. It clarifies that adult foster care homes, nursing homes, homes for the aged, and substance abuse centers are not eligible as homesteads for this credit. The bill mandates that the credit calculation be based on a specified table reflecting the number of exemptions claimed, with annual adjustments to ensure that claimants with household resources below 110% of federal poverty income standards are not excluded from receiving the credit. Additionally, it requires adjustments to the maximum cost incurred for heating fuel and total household resources based on the Consumer Price Index.

Furthermore, the bill introduces new obligations for enrolled heating fuel providers, including notifying customers about the credit's availability and providing necessary information for credit determination. It establishes procedures for issuing and applying energy drafts to ensure timely credit receipt for claimants. The bill also enforces these requirements through the Michigan Public Service Commission or the Department of Health and Human Services, depending on the provider's regulatory status. Other key changes include the requirement for an annual study of heating costs, a simplified claiming procedure for those receiving direct vendor payments, and the credit's exemption from legal processes like garnishment. The Department of Health and Human Services is mandated to report annually on the effectiveness of related assistance programs, and definitions related to claimants and heating fuel providers are updated.

Statutes affected:
House Introduced Bill: 206.527