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Act No. 55
Public Acts of 2025
Approved by the Governor
December 23, 2025
Filed with the Secretary of State
December 23, 2025
EFFECTIVE DATE: December 23, 2025
STATE OF MICHIGAN
103RD LEGISLATURE
REGULAR SESSION OF 2025
Introduced by Reps. Schuette, Pavlov, Mentzer, Borton and Bierlein
ENROLLED HOUSE BILL No. 4543
AN ACT to amend 1967 PA 281, entitled “An act to meet deficiencies in state funds by providing for the
imposition, levy, computation, collection, assessment, reporting, payment, and enforcement by lien and otherwise
of taxes on or measured by net income and on certain commercial, business, and financial activities; to prescribe
the manner and time of making reports and paying the taxes, and the functions of public officers and others as to
the taxes; to permit the inspection of the records of taxpayers; to provide for interest and penalties on unpaid
taxes; to provide exemptions, credits, rebates, and refunds of the taxes; to create certain funds; to provide for the
expenditure of certain funds; to impose certain duties and requirements on certain officials, departments, and
authorities of this state; to prescribe penalties for the violation of this act; to provide an appropriation; and to
repeal acts and parts of acts,” by amending section 527a (MCL 206.527a), as amended by 2022 PA 266.
The People of the State of Michigan enact:
Sec. 527a. (1) Subject to subsections (18) and (19), a claimant may claim a credit for heating fuel costs for the
claimant’s homestead in this state. An adult foster care home, nursing home, home for the aged, or substance
abuse center is not a homestead for purposes of this section. The credit must be determined in the following
manner:
(a) Subject to subsections (18) and (19), the following table must be used for the computation of a credit as
computed under subdivision (c):
Exemptions 0 or 1 2 3 4 5 6 or more
Credit $272 $326 $379 $450 $525 $601 + $76 for each exemption over 6
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(b) The amounts in the table in subdivision (a) must be adjusted each year as necessary by the department so
that a claimant with total household resources of less than 110% of the federal poverty income standards as
defined and determined annually by the United States Office of Management and Budget is not denied a credit.
(c) A claimant must receive the greater of the credit amount as determined in subparagraph (i) or (ii):
(i) Subtract 3.5% of the claimant’s total household resources from the amount specified in subdivision (a) that
corresponds with the number of exemptions claimed in the return filed under this part, except that the number
of exemptions for purposes of this subdivision must not exceed the actual number of individuals living in the
household plus the additional personal exemptions allowed under section 30, and any dependency exemptions for
individuals living in the household under a custodial arrangement, even if the exemptions may not be claimed for
other income tax purposes. For a claimant whose heating costs are included in the claimant ’s rent, multiply the
result of the preceding calculation by 50%.
(ii) Subject to subsection (2), for a claimant whose total household resources do not exceed the maximum
specified in the 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%:
Exemptions 0 or 1 2 3 4 5 For each exemption over 5, add $2,441.00 to the maximum total household resources
Maximum
Total
Household
Resources $7,060 $9,501 $11,943 $14,382 $16,824
(d) The maximum cost incurred by a claimant for heating fuel during a tax year must be adjusted by
multiplying the maximum cost for the immediately preceding tax year by the percentage by which the average
United States Consumer Price Index for household energy for the 12 months ending August 31 of the tax year for
which the credit is claimed exceeds that index ’s average for the 12 months ending on August 31 of the previous
tax year, but not more than 10%. That product must be added to the maximum cost of the immediately preceding
tax year and then rounded to the nearest whole dollar. That dollar amount is the new maximum cost for the
current tax year. If the claimant received any credits to the claimant’s heating bill during the tax year, as provided
for in subsection (6), the credits are treated as costs incurred by the claimant.
(e) The maximum total household resources specified in subdivision (c)(ii) must be adjusted by multiplying the
respective maximum total household resources for the immediately preceding tax year by the percentage by which
the average United States Consumer Price Index for all items for the 12 months ending August 31 of the tax year
for which the credit is claimed exceeds that index ’s average for the 12 months ending on August 31 of the
immediately preceding tax year, but not more than 10%. That product must be added to the immediately
preceding tax year’s respective maximum total household resources and then rounded to the nearest whole dollar.
That dollar amount is the new maximum level for total household resources for the then current tax year.
(2) An enrolled heating fuel provider shall notify each of its customers, not later than December 15 of each
year, of the availability, upon request, of the information necessary for determining the credit under this section.
For a claimant for whom, at the time of filing, the department of health and human services is making direct
vendor payments to an enrolled heating fuel provider, the enrolled heating fue l provider that accepts the direct
payments shall provide the information necessary to determine the credit before February 1 of each year. If an
enrolled 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 the claimant’s own records.
(3) A credit claimed on a return that covers a period of less than 12 months must be calculated based on
subsection (1)(c)(i) and reduced proportionately.
(4) The allowable amount of the credit under this section must be remitted to the claimant, other than a
claimant whose heating costs are included in the claimant ’s rent, in the form of an energy draft that states the
name of the claimant and is issued by the department. For a claimant for whom, at the time of filing, the
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department of health and human services has identified the enrolled heating fuel provider or is making direct
vendor payments to an enrolled heating fuel provider, the department shall send the energy draft directly to the
claimant’s enrolled heating fuel provider, as identified by the claimant. If the department establishes a program
or pilot program for the direct payment of energy drafts to enrolled heating fuel providers, enrolled heating fuel
providers may submit to the department, in a manner prescribed by the department, the names of their customers
who are claimants. If a claimant whose name has been submitted meets the standards established by the
department, the department shall send that claimant ’s energy draft directly to the claimant ’s enrolled heating
fuel provider. 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 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. Except as provided in subsect ion (5), after July 31, a refundable credit for a prior
tax year may be paid in the form of a negotiable warrant. The energy draft is negotiable only through the
claimant’s enrolled heating fuel provider upon remittance by the claimant.
(5) If a claimant received home heating assistance from the department of health and human services, a
governmental agency, or a nonprofit organization 12 months prior to remitting an energy draft to the claimant ’s
enrolled heating fuel provider and the amount of the energy draft is greater than the total of outstanding bills
incurred by the claimant with the enrolled heating fuel provider as of the date that the energy draft was remitted
to the enrolled heating fu el provider, the enrolled heating fuel prov ider shall first apply the full amount of the
energy draft to the claimant’s outstanding bills and then apply any remaining amount to subsequent bills of the
claimant until the full amount of the energy draft is used up or the expiration of 9 months after the date on which
the energy draft was first applied to cover the claimant’s outstanding bills. If there is any remaining energy draft
amount at the end of the 9 -month period, or if before the end of the 9 -month period the claimant is no longer a
customer of the enrolled heating fuel provider, the enrolled heating fuel provider shall remit the remaining
amount to the claimant in the form of a fully negotiable check within 14 days after the end of the 9-month period
or 14 days after the termination of services, whichever occurs sooner. If the claimant did not receive home heating
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.
The enrolled heating fuel provider shall issue the payment within 14 days after the claimant ’s request. For
purposes of this subsection, home heating assistance does not include the credit allowed under this section.
(6) If a claimant whose energy draft exceeds the claimant’s outstanding bills does not request a payment from
an enrolled heating fuel provider under subsection (5), an energy draft remitted to an enrolled heating fuel
provider must be applied upon receipt to the claimant’s designated account. The energy draft may be used to cover
outstanding bills that the claimant has incurred with the enrolled heating fuel provider and to cover subsequent
heating costs until the full amount of the energy draft is used or until 1 year after the date on which the energy
draft is first applied to the claimant’s designated account. If a credit amount remains from this energy draft after
the 1-year period, or if prior to the end of the 1 -year period a claimant is no longer a customer of the enrolled
heating fuel provider, the heating fuel provider shall remit the remaining unused portion to the claimant in the
form of a fully negotiable check within 14 days after the end of the 1 -year period or within 14 days after
termination of service, whichever is sooner.
(7) A claimant who is no longer a resident of this state, who 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. A claimant may return an energy draft to the
department and request issuance of a negotiable warrant if the energy draft is impractical because the claimant
has already purchased the claimant’s energy supply for the year and does n ot have an outstanding obligation to
an enrolled heating fuel provider. The department may honor that request if it agrees that the use of the energy
draft is impractical. The department shall issue the warrant within 14 days after receiving the energy draft from
the claimant.
(8) The enrolled heating fuel provider shall bill the department for credit amounts that have been applied to
claimant accounts pursuant to subsection (6), and the department shall pay the bills within 14 days of receipt.
The billing must be accompanied by the energy drafts for which reimbursement is claimed.
(9) A claimant whose heating fuel is provided by a utility regulated by the Michigan public service commission
is protected against the discontinuance of the claimant’s heating fuel service from the date of filing a claim for the
credit under this section through the date of issuance of an energy draft and during a period beginning December 1
of the tax year for which the credit is claimed and ending March 31 of the following year if the claimant
participates in the winter protection program set forth in R 460.131 of the Michigan Administrative Code or if the
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utility accepts the claimant’s energy draft. The acceptance of an energy draft by a utility is considered a request
by the claimant for the winter protection program. The energy draft must be coded by the department to denote
claimants who are 65 years of age or older. If the claimant is a claimant whose heating cost is included in the
claimant’s rent payments, the amount of the claim not used as an offset against the state income tax, after
examination and review, must be approved for payment, without interest, to the claimant.
(10) If an enrolled heating fuel provider does not issue a payment or a negotiable check within 14 days or as
otherwise provided in subsection (5) or (6), beginning on the fifteenth day or the fifteenth day after the expiration
of the 9 -month period under subsection (5), the amount due to the claimant is increased by adding interest
computed on the basis of the rate of interest prescribed for delayed refunds of excess tax payments in section 30(3)
of 1941 PA 122, MCL 205.30. The enrolled heating fuel provid er shall pay the interest and shall not bill the
interest to or be reimbursed for the interest by the department.
(11) Only the renter or lessee shall claim a credit on property that is rented or leased as a homestead. Only
1 credit may be claimed for a household. The credit under this section is in addition to other credits to which the
claimant is entitled under this part. An individual who is a full -time student at a school, community college, or
college or university and who is claimed as a dependent by another individual is not eligible for the credit provided
by this section. A claimant who shares a homestead with other eligible claimants shall prorate the credit by the
number of claimants sharing the homestead.
(12) The department shall refer a claimant who is eligible for the credit provided by this section to the
appropriate state agency for determination of eligibility for home weatherization assistance and the claimant
shall accept weatherization assistance i f eligible and if assistance is available. A heating fuel provider that is
required by the Michigan public service commission to participate in the residential conservation services home
energy analysis program shall annually contact each claimant to whom it provides heating fuel, and whose usage
exceeds 200,000 cubic feet of natural gas or 18,000 kilowatt hours of electricity annually, and shall offer to provide
a home energy analysis at no cost to the claimant. A heating fuel provider that is not required to participate in
the residential conservation services program is not required to conduct a home energy analysis for its customers.
For all rental properties that are weatherized pursuant to this section, each agency that determines eligibility for
weatherization assistance shall require that not less than 25% of the total cost of the weatherization services for
that property must be contributed by the property owner unless the property owner is also eligible for
weatherization assistance or is a nonprofit organization, governmental agency, or municipal corporation.
(13) If an enrolled heating fuel provider is regulated by the Michigan public service commission, the Michigan
public service commission may use an enforcement method authorized by law or rule to enforce the requirements
prescribed by this section on the e nrolled heating fuel provider. 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 fuel provider.
(14) The department shall mail a home heating credit return to every individual who received assistance
through the department of health and human services pursuant to the social welfare act, 1939 PA 280, MCL 400.1
to 400.119b, during the tax year.
(15) The department shall complete a study by August 1 of each year, of the actual heating costs of each
claimant who received a credit from the department under this section for the immediately preceding tax year.
(16) The department may promulgate rules necessary to administer this section pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(17) The department shall provide a simplified procedure for claiming the credit under this section for
claimants for whom, at the time of filing, the department of health and human services is making direct vendor
payments to an enrolled heating fuel provider.
(18) The credit under this section is allowed only if there has been a federal appropriation for the federal fiscal
year beginning in the tax year of federal low income home energy assistance program block grant funds of any
amount. If the amount of federal low income home energy assistance program block grant funds available for the
home heating credit is less than the full home heating credit amount, each individual credit claimed under this
section must be reduced by multiplying the credit amount by a fr action, the numerator of which is the amount
available for the home heating credit and the denominator of which is the full home heating credit amount. 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 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 ca rried
forward from the immedia tely 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 progra m block grant, the amount certified by the
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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. For the 2014-2015 fiscal year
and continuing through the 202 6-2027 fiscal year, the amount used for weatherization each fiscal year must be
determined as provided under this subsection. If the total federal low income home energy assistance program
block grant received for the current fiscal year is greater than or equal to 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 must be at least $6,000, 000.00 but not
greater than 15% of the total federal low income home energy assistance program block grant funds received for
that fiscal year. 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 must be at least $5,000,000.0 0 but not greater than 15% of the total federal low income home
energy assistance program block grant funds received for that fiscal year. The amounts under this subsection that
require certification by the director of the department of health and human services or by the state treasurer and
the director of the department of technology, management, and budget must be certified on or before December 30
of the tax year and each tax year thereafter. As used in this subsection, “full home heating credit amount” means
the amount certified by the state treasurer and the director of the department of technology, management, and
budget to be the estimated amount of the credits that would have been provided under this section for the tax
year if no reduction as provided in this subsection were made for that tax year.
(19) A claimant who claims a credit under this section shall not report the credit amount on the claimant ’s
income tax return filed under this part as an offset against the tax imposed by this part, but shall claim the credit
on a separate form prescribed by the department. A credit claimed under this section is not allowed unless the
claim for the credit is filed with the department on or before the September 30 immediately following the tax year
for which the credit is claimed. A credit claimed under this section is not allowed unless the claimant provides the
department with all of the information, as requested by the department of health and human services, necessary
to comply with the requirements of the federal appropriation of the federal low income h ome energy assistance
program block grant. The department shall disclose the information provided under this subsection to the
department of health and human services or the United States Department of Health and Human Services or its
successor. The confidentiality restrictions provided in section 28(1)(f) of 1941 PA 122, MCL 205.28, do not apply
to the disclosure required by this subsection.
(20) Notwithstanding section 30a of 1941 PA 122, MCL 205.30a, the credit allowed under this section is exempt
from interception, execution, levy, attachment, garnishment, or other legal process to collect a debt. The
department shall not apply any portion of the credit allowed or any rights existing under this section as an offset
to any liability of the claimant under section 30a of 1941 PA 122, MCL 205.30a, or any arrearage or other debt of
the claimant.
(21) The department shall meet with interested parties including enrolled heating fuel providers and advocacy
groups to identify and implement methods of improving the processing of claims for the credit allowed under this
section and payments attributable to those credits.
(22) By July 1, 2018 and by each July 1 thereafter, the department of health and human services shall submit
a report on the operation and effectiveness of the home heating and weatherization assistance programs under
this section and any recommendations regarding the home heating and weatherization assistance programs to all
of the following:
(a) The chairpersons and vice -chairpersons of the senate and house of representatives appropriations
committees.
(b) The senate and house of representatives committees on taxation and finance related issues.
(c) The senate and house of representatives committees on energy and technology related issues.
(23) As used in this section:
(a) “Claimant whose heating costs are included in 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.
(b) “Enrolled heating fuel provider ” means a heating fuel provider that is enrolled with the department of
health and human services as a heating fuel provider.
(c) “Heating fuel provider ” means an individual or entity that provides a claimant with heating fuel or
electricity for heating purposes.
(d) “United States Consumer Price Index ” means the United States Consumer Price Index for all urban
consumers as defined and reported by the United States Department of Labor, Bureau of Labor Statistics.
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This act is ordered to take immediate effect.
Clerk of the House of Representatives
Secretary of the Senate
Approved___________________________________________
____________________________________________________
Governor