Michigan House Bill HB4543

Michigan 2025-2026 Regular Session

• Introduced: 6/3/25
• Refer: 6/3/25
• Engrossed: 8/19/25

Caption

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).

Impact

If enacted, HB 4543 would result in an increase in the financial assistance available to low-income residents in Michigan who claim the home heating credit. This change is intended to ensure that support facilities are adapting to inflation, allowing for adjustments in credit amounts based on comprehensive cost-of-living measures. This could have a significant positive impact on low-income households, helping them manage their heating fuel costs better, and reducing the financial strain of heating expenses in winter months.

Summary

House Bill 4543 seeks to amend the Income Tax Act of 1967, specifically section 527a, by adjusting the computation of the home heating credit based on the United States Consumer Price Index instead of the Detroit Consumer Price Index. This amendment is aimed at ensuring that the credit accurately reflects inflation and heating costs for residents in Michigan. By making these adjustments, the bill aims to improve the accessibility of the heating credit for low-income households, thereby providing a more effective financial solution for those struggling with heating costs during colder months.

Sentiment

The general sentiment surrounding HB 4543 appears to be supportive, especially among advocates for low-income households and community leaders. Supporters argue that the bill is necessary for adapting help to the changing economic conditions, enhancing the safety net for vulnerable populations. Critics may express concerns about the overall financial implications for the state budget or the effectiveness of changing the indexing method without ensuring additional safety nets remain in place for those unable to access the credit.

Contention

Notable points of contention surrounding this legislation could revolve around the adequacy of the proposed adjustments based on the new Consumer Price Index. Questions may arise regarding the determination of specific thresholds for eligibility and whether the new measures sufficiently capture the actual economic experiences of low-income households. Additionally, there could be discussions among lawmakers about the implications of the changes on state revenue, and whether resources will be available to support the potential increase in claims.