Michigan House Bill HB4543

Michigan 2025-2026 Regular Session

• Introduced: 6/3/25
• Refer: 6/3/25

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 amendments will ensure that the credit amounts are adjusted each year to reflect changes in the cost of living, particularly based on the Detroit Consumer Price Index. This adjustment aims to prevent low-income applicants from being denied credits due to rising heating fuel costs. The bill also details the procedures for applying for the credit, ensuring that households with total resources below a certain threshold remain eligible, thus impacting the affordability of heating for vulnerable populations.

Summary

House Bill 4543 aims to amend Michigan's Income Tax Act of 1967 by updating provisions related to the home heating credit under section 527a. The bill specifies how claimants can receive a credit for heating fuel costs associated with their homesteads. The home heating credit program is designed to assist low-income households in covering home heating expenses. The bill establishes a structured credit schedule, varying based on the number of exemptions claimed and adjusts these amounts annually based on federal poverty standards.

Contention

One notable point of contention surrounding HB4543 is the dependence on federal appropriations to fund the home heating credit. If federal funding falls short, the credit amount will decrease accordingly. This vulnerability to federal budget decisions has raised concerns among advocacy groups about the reliability of the program. Additionally, the provision that exempts credits from being reported as taxable income aims to encourage participation but could face scrutiny from opposition parties concerned about budget implications.