SB 435 — 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).

SB-435, As Passed Senate, August 13, 2025 SENATE BILL NO.

The credit shall must be KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh determined in the following manner:

(ii) Subject to subsection (2), for a claimant whose total household resources do not exceed the maximum specified in the KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh following table, as adjusted, that corresponds with the number of exemptions claimed in the return filed under this part, subtract 11% of claimant's total household resources from the total cost incurred by a claimant for heating fuel from a heating fuel provider during the 12 consecutive monthly billing periods ending in October of the tax year, and multiply the resulting amount by 70%:

That KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh product shall must be added to the maximum cost of the immediately preceding tax year and then rounded to the nearest whole dollar.

If an enrolled KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh heating fuel provider refuses or fails to provide to a customer the information required to determine the credit, or if the claimant is not a customer of an enrolled heating fuel provider, a claimant may determine the credit provided in subsection (1)(c)(ii) based on his or her the claimant's own records.

If the enrolled heating fuel provider submits names of claimants who are not its customers and the energy drafts of any of those claimants are sent to the enrolled heating fuel provider, the enrolled heating fuel provider KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh shall return the energy drafts or pay the value of the energy drafts to the department plus interest on the amount of the energy drafts at the rate calculated under section 23 of 1941 PA 122, MCL 205.23, for deficiencies in tax payments.

If the claimant did not receive home heating KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh assistance from the department of health and human services, a governmental agency, or a nonprofit organization 12 months prior to remitting an energy draft, the claimant, by checking the appropriate box to be included on the energy draft or application for participation with an enrolled heating fuel provider, may request from the enrolled heating fuel provider a payment equal to the amount of the energy draft less the amount of the outstanding bills.

(7) A claimant who is no longer a resident of this state, who KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh is not a customer of an enrolled heating fuel provider, or whose heating fuel provider refuses to accept an energy draft shall return the energy draft to the department and request the issuance of a negotiable warrant.

The acceptance of an energy draft by a utility is considered a request by the claimant for the KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh winter protection program.

(12) A The department shall refer a claimant who is eligible for the credit provided by this section shall be referred by the KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh department to the appropriate state agency for determination of eligibility for home weatherization assistance and the claimant shall accept weatherization assistance if eligible and if assistance is available.

If an enrolled heating fuel provider is not regulated by the Michigan public service commission, the department of health and human services may use an enforcement method authorized by law or rule to enforce the requirements prescribed by this section on the enrolled heating KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh fuel provider.

As used in this subsection, "amount available for the home heating credit" means the sum of the federal low income home energy assistance program block grant allotment for KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh this state for the federal fiscal year beginning in the tax year and the amount as certified by the director of the department of health and human services carried forward from the immediately preceding fiscal year for the low income home energy assistance program block grant minus the sum of the amount certified by the director of the department of health and human services for administration of the low income home energy assistance program block grant, the amount certified by the director of the department of health and human services for crisis assistance programs, and the amount certified by the director of the department of health and human services for weatherization.

If the total federal low income home energy assistance block grant received for the current fiscal year is less than 90% of the amount of block grant funds received in the immediately preceding fiscal year, then the amount of federal low income home energy assistance program block grant funds used for weatherization for that fiscal year shall must be at least $5,000,000.00 but not greater than 15% of the total federal low income home energy assistance program block grant funds KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh received for that fiscal year.

The confidentiality restrictions KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh provided in section 28(1)(f) of 1941 PA 122, MCL 205.28, do not apply to the disclosure required by this subsection.

(a) "Claimant whose heating costs are included in his or her KAS S03070'25_SB0435_INTR_1S03070'25_SB435_APS_1 k6b0ptanrigh the claimant's rent" means a claimant whose rent includes the cost of heat at the time the claim for the credit under this section is filed.

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