Schuette: legislation would be major affordability win for Michiganders

As frigid winter weather wreaks havoc on communities throughout Michigan, the Michigan Senate this week overwhelmingly advanced a bill from State Representative Bill G. Schuette that protects a critical tax credit, saves people money and makes it easier for them to heat their homes.

House Bill 4543 ensures the Michigan Home Heating Tax Credit, a program established in 1967 and utilized by more than 250,000 homeowners and renters statewide, stays up to date and adjusted for inflation. The bill previously advanced overwhelmingly through the House in August and now heads to the governor’s desk for her signature.

“I’m pleased we are coming together in Lansing to provide relief to low-income Michiganders we all represent, help them cover this cost and ensure they get a full home heating tax credit,” Schuette said. “People continue to struggle with high costs virtually everywhere they turn, and we are continuing our push in the House to remove these burdens and make our state a better, more affordable place to live and work for all Michiganders. Given the federal changes we saw at the beginning of the year, this adjustment is necessary to keep this credit in place.”

The credit is developed every year on Aug. 31 based on the availability of federal funds and adjusted for inflation based on the Detroit Consumer Price Index (CPI) for fuel and utilities. However, the Bureau of Labor and Statistics no longer is publishing the Detroit CPI or any other urban area CPI for this metric going forward. As a result, any future distribution of federal funds through the Home Heating Tax Credit would no longer be adjusted for inflation.

HB 4543 replaces the Detroit CPI with the average US National CPI for calculating annual adjustments, ensuring that any time the state has funds to distribute thought this credit, they are sufficiently changed to best suit the needs of Michiganders.

Schuette noted the original idea for the legislation came from a local AARP tax service and a constituent, Mark Marinan, within his House district covering Midland and portions of Gladwin and Bay counties.

“This was representation at work, by bringing an idea that came about locally to Lansing and being a consistent voice for reforms,” Schuette said. “I will continue fighting to make life more affordable for people across our region and the state.”