East Michigan News

Legislation sponsored by State Representative Bill G. Schuette aimed at maintaining the value of the Michigan Home Heating Tax Credit has moved forward in the Michigan House.

House Bill 4543 seeks to keep the tax credit, which has existed since 1967 and is used by more than 250,000 residents across Michigan, aligned with inflation rates. The program helps low-income residents offset heating costs during winter.

“Michigan winters can be extremely harsh, and the cost of heating our homes continues to rise,” Schuette said. “This credit provides needed relief to low-income Michiganders we all represent to help them cover that cost. This bill takes note of recent changes in how this relief is calculated and ensures its protection going forward.”

The annual calculation for the credit has relied on the Detroit Consumer Price Index (CPI) for fuel and utilities, which was published by the Bureau of Labor and Statistics. However, this index will no longer be available because it is being discontinued for Detroit and other urban areas. Without an updated measure, future distributions from federal funds through the Home Heating Tax Credit would not reflect inflation.

To address this issue, HB 4543 proposes replacing the Detroit CPI with the US National CPI as a basis for adjustments. This change aims to ensure that when state funds are distributed through this credit, they remain responsive to changing costs faced by Michiganders.

While presenting his bill in the House, Schuette acknowledged a local AARP tax service in Midland and constituent Mark Marinan for highlighting the need for these updates. The legislation received bipartisan support and now moves to the Senate for further review.