Michigan 2025-2026 Regular Session

Michigan Senate Bill SB0435

Introduced
6/24/25  

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

The proposed changes underline the importance of financial relief for low-income residents during colder months. By adjusting the maximum allowable credit amounts annually based on consumer price indices, the bill seeks to mitigate the impact of inflation on heating costs, thereby providing a crucial lifeline for households struggling with energy expenses. Additionally, the legislation outlines that the ability to claim these credits will not only help lower overall tax burdens but also incentivize compliance among those seeking assistance, as measures have been put in place to assess eligibility through required documentation.

Summary

Senate Bill 0435, titled 'Individual income tax: home heating credit; adjustments based on Detroit Consumer Price Index; change to United States Consumer Price Index', aims to amend Section 527a of the Income Tax Act of 1967. This legislation proposes modifications to the existing framework that allows for tax credits pertaining to heating fuel costs for claimants' homesteads. The bill emphasizes adjusting the credit amounts in line with living cost metrics, specifically through the Detroit Consumer Price Index, aimed at ensuring that individuals in need do not face an undue burden from rising heating costs.

Contention

Despite the bill’s intentions, there is a potential for contention regarding the requirement for claimants to submit additional information requested by the Department of Health and Human Services. This may be seen as an additional bureaucratic hurdle for those already in precarious financial situations. Furthermore, the temporary linkage of credits to federal grant appropriations raises concerns about the sustainability of funding and whether such aid can consistently be made available in future fiscal years, particularly during economic downturns.

Companion Bills

No companion bills found.

Previously Filed As

MI HB4767

Individual income tax: income; certain references in the income tax act; make gender neutral. Amends secs. 311, 504 & 522 of 1967 PA 281 (MCL 206.311 et seq.). TIE BAR WITH: HJR F'23

MI HB4724

Individual income tax: property tax credit; credit for disabled veterans or widow or widower of disabled veterans who rent or lease a homestead; increase. Amends secs. 506, 520, 522 & 530 of 1967 PA 281 (MCL 206.506 et seq.).

MI HB4894

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: HB 4895'23

MI SB0454

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0455'23

MI SB0095

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0096'23

MI HB5667

Individual income tax: rate; rollback to 4.05%; provide for. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

MI HB5399

Individual income tax: rate; rollback rate to 3.9%; provide for. Amends sec. 51 of 1967 PA 281 (MCL 206.51).

MI SB0011

Individual income tax: credit; beginning farmer tax credit; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 279.

MI HB5101

Individual income tax: credit; research and development credit for certain small employers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 717.

MI HB5100

Corporate income tax: credits; research and development credit for certain employers; provide for. Amends 1967 PA 281 (MCL 206.1 - 206.847) by adding sec. 677 & repeals sec. 716 of 1967 PA 281 (MCL 206.716).

Similar Bills

MI HB4543

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).

MI HB4724

Individual income tax: property tax credit; credit for disabled veterans or widow or widower of disabled veterans who rent or lease a homestead; increase. Amends secs. 506, 520, 522 & 530 of 1967 PA 281 (MCL 206.506 et seq.).

MI SB0345

Individual income tax: property tax credit; homestead property tax credit; increase, and modify income threshold. Amends secs. 504 & 520 of 1967 PA 281 (MCL 206.504 & 206.520). TIE BAR WITH: SB 0344'25

MI SB0095

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0096'23

MI HB4894

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: HB 4895'23

MI SB0454

Individual income tax: property tax credit; replacement of disabled veterans property tax exemption with a property tax credit for disabled veterans; provide for. Amends secs. 520, 522 & 524 of 1967 PA 281 (MCL 206.520 et seq.) & adds sec. 521. TIE BAR WITH: SB 0455'23

MI HB4088

Individual income tax: property tax credit; taxable value cap on homestead eligibility for credit; increase and modify adjustment factor. Amends sec. 520 of 1967 PA 281 (MCL 206.520).

MN HF2904

Property tax refund program converted to refundable income tax credit.