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MichiganHB 45432025-2026 Regular SessionHouseWALLET

Individual income tax: home heating credit; adjustments based on Detroit Consumer Price Index; change to United States Consumer Price Index. Amends sec. 527a of 1967 PA 281 (MCL 206.527a). Last Action: assigned PA 55'25 with immediate effect

Sponsored By: Bill Schuette (Republican)

Became Law

Individual income tax: home heating credit

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

Home heating credit for Michigan households

Michigan offers a refundable home heating credit for your homestead in the state. Nursing homes, adult foster care homes, homes for the aged, and substance abuse centers do not count as a homestead. Only one credit is allowed per household. Only the renter or lessee may claim it for a rented home. Full‑time students who are claimed as a dependent cannot claim it. If several eligible people share a home, split the credit equally. You choose the larger of two methods: Method A: Start with the base amount by exemptions (0–1: $272; 2: $326; 3: $379; 4: $450; 5: $525; 6+: $601 plus $76 for each exemption over 6), then subtract 3.5% of total household resources. If heat is included in rent, cut this result in half. Method B: If your household resources are at or below the limit for your exemptions (0–1: $7,060; 2: $9,501; 3: $11,943; 4: $14,382; 5: $16,824; add $2,441 for each exemption over 5), your credit is 70% of (your last 12 months of heating fuel costs ending in October minus 11% of your resources). If your tax year is under 12 months, figure Method A and then reduce it to match the shorter period.

Weatherization help and free energy checks

If you are eligible for weatherization help, the department refers you to the right agency, and you must accept help when it is available. Utilities in the state program must offer you a free home energy analysis each year if your use is over 200,000 cubic feet of gas or 18,000 kWh of electricity. For rentals, the owner must pay at least 25% of weatherization costs unless the owner also qualifies or is a nonprofit or government.

How your credit is paid and protected

Credits are paid as energy drafts. If DHHS identifies your enrolled heating provider, the draft goes straight to that provider. Providers must first apply the draft to past‑due and future heating bills. If any amount remains after 9 months (or service ends), they must send you a check within 14 days. If you did not get prior heating help and you ask for money, they must pay you in 14 days. If you do not ask, they may apply it to your account for up to one year, then must pay any balance in 14 days. The department reimburses providers within 14 days, and late provider payments owe interest starting on day 15. When you file, a regulated utility cannot shut off your heat until the draft is issued. From December 1 to March 31, you are also protected if you join winter protection or the utility accepts your draft. Your credit cannot be taken to pay debts or used to offset tax arrears. State agencies can enforce these rules on enrolled providers.

Credit depends on federal energy funds

The home heating credit is allowed only if there is any federal LIHEAP money for the federal fiscal year that starts in your tax year. If available funds are less than all full credits, each person’s credit is cut by the same fraction: available funds divided by total full credits. Each year, Michigan also sets aside weatherization funds from LIHEAP: at least $6,000,000 if funding is at least 90% of last year, or at least $5,000,000 if not. In all cases, weatherization cannot exceed 15% of total LIHEAP. Key amounts are certified by December 30.

Yearly updates tied to U.S. inflation

The maximum heating cost counted in the credit updates each year by the U.S. Consumer Price Index for household energy for the 12 months ending August 31. The increase is capped at 10% and rounded. Credits you used on your bill count as costs. The income/resource limits for the cost‑based method also update each year by the U.S. CPI for all items, capped at 10%. The department also adjusts the base table so households under 110% of federal poverty guidelines are not denied a credit.

How to file and get documents

You must claim the home heating credit on a separate form. File it by September 30 after the tax year. The department shares needed claim information with state or federal health and human services, and you must provide requested data. Enrolled heating providers must tell customers by December 15 that billing information is available. Providers that take DHHS direct payments must give needed data before February 1. If you got DHHS assistance that year, the department mails you the credit form. If DHHS is paying your heating vendor when you file, you get a simpler claim process.

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Sponsors & Cosponsors

Sponsor

  • Bill Schuette

    Republican • House

Cosponsors

  • Denise Mentzer

    Democratic • House

  • Joseph Pavlov

    Republican • House

  • Ken Borton

    Republican • House

  • Matt Bierlein

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 119 • No: 18

Senate vote • 12/16/2025

PASSED; GIVEN IMMEDIATE EFFECT

Yes: 31 • No: 4 • Other: 2

House vote • 8/19/2025

passed; given immediate effect

Yes: 88 • No: 14 • Other: 8

Actions Timeline

  1. assigned PA 55'25 with immediate effect

    12/31/2025House

  2. filed with Secretary of State 12/23/2025 12:02 PM

    12/31/2025House

  3. approved by the Governor 12/23/2025 10:32 AM

    12/31/2025House

  4. presented to the Governor 12/18/2025 03:04 PM

    12/18/2025House

  5. bill ordered enrolled

    12/17/2025House

  6. full title agreed to

    12/17/2025House

  7. returned from Senate without amendment with immediate effect and full title

    12/17/2025House

  8. RETURNED TO HOUSE

    12/16/2025House

  9. INSERTED FULL TITLE

    12/16/2025Senate

  10. PASSED; GIVEN IMMEDIATE EFFECT ROLL CALL # 343 YEAS 31 NAYS 4 EXCUSED 2 NOT VOTING 0

    12/16/2025Senate

  11. PLACED ON IMMEDIATE PASSAGE

    12/16/2025Senate

  12. RULES SUSPENDED

    12/16/2025Senate

  13. PLACED ON ORDER OF THIRD READING

    12/16/2025Senate

  14. REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)

    12/16/2025Senate

  15. RULES SUSPENDED FOR IMMEDIATE CONSIDERATION

    12/16/2025Senate

  16. PLACED ON ORDER OF GENERAL ORDERS

    12/16/2025Senate

  17. DISCHARGE COMMITTEE APPROVED

    12/16/2025Senate

  18. REFERRED TO COMMITTEE ON ENERGY AND ENVIRONMENT

    8/26/2025Senate

  19. PASSED BY HOUSE WITH IMMEDIATE EFFECT

    8/26/2025House

  20. transmitted

    8/19/2025House

  21. passed; given immediate effect Roll Call #176 Yeas 88 Nays 14 Excused 0 Not Voting 8

    8/19/2025House

  22. read a third time

    8/19/2025House

  23. placed on immediate passage

    8/19/2025House

  24. placed on third reading

    8/19/2025House

  25. read a second time

    8/19/2025House

Bill Text

  • Public Act

    12/23/2025

    PDF

  • House Concurred

    12/17/2025

    PDF

  • As Passed by the Senate

    12/16/2025

    PDF

  • As Passed by the House

    8/19/2025

    PDF

  • Introduced

    6/3/2025

    PDF

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