LANSING, Mich. (Aug. 13, 2025) — Today, the Senate passed bipartisan legislation championed by Senate Majority Floor Leader Sam Singh (D-East Lansing) to ensure Michiganders can afford to heat their homes during the state’s colder months. Senate Bill 435 would make time-sensitive updates to how the state Treasury department makes its annual inflation adjustment for the Home Heating Tax Credit — proposing to utilize the U.S. Consumer Price Index (CPI) to account for inflation instead. In response to today’s passage, Sen. Singh has issued the following statement:
“As everyday costs continue to rise and Michiganders increasingly feel the stress of trying to make ends meet, we need to make sure our seniors and families around the state have a strong safety net to rely on. For the hundreds of thousands of Michigan households who depend on the Home Heating Credit to keep warm in the wintertime — this legislation is a no-brainer,” said Sen. Singh. “By making this necessary change to account for upward inflation, we can ensure our folks who are facing financial challenges can continue to access the resources they need now and into the future.”
The Michigan Home Heating Credit is an Individual Income Tax Credit that reduces the financial burden for over 250,000 low-income households across the state by allowing them to file for an annual credit that reimburses them for the costs of heating their home. It is implemented by the Michigan Dept. of Treasury and includes an annual inflation adjustment for eligibility purposes. The annual inflation adjustment in Michigan statute, the Detroit CPI for Fuels and Other Utilities, is being discontinued by the U.S. Bureau of Labor Statistics. Senate Bill 435 proposes to replace the outdated inflation adjustment with the U.S. CPI for Household Energy, which would be the closest available index that maintains the intent of current law.
This legislation now heads to the House for consideration.