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House passes technical fix to preserve Michigan Home Heating Tax Credit’s inflation adjustment
Summary
The Michigan House on Aug. 15 passed House Bill 4543, a technical change to ensure the Michigan Home Heating Tax Credit continues to be adjusted for inflation after the Detroit CPI was discontinued by the Bureau of Labor Statistics.
Lansing — The Michigan House of Representatives on Aug. 15 passed House Bill 4543, a technical amendment to the Income Tax Act of 1967 intended to preserve annual inflation adjustments to the Michigan Home Heating Tax Credit. The measure passed by roll-call vote, 88-14, and the House ordered the bill to take immediate effect.
The bill replaces a reference to the Detroit Consumer Price Index with the U.S. national Consumer Price Index for calculating future inflation adjustments to the home heating credit. Representative Schuette, who introduced and spoke in favor of the bill, said the change is needed because the Bureau of Labor Statistics will no longer publish the Detroit CPI.
"My bill, 45 43, it's a technical fix that has a big impact on people across the state of Michigan because it ensures that the Michigan Home Heating Tax Credit, a program established in 1967 and utilized by more than a quarter million residents across our state, stays up to date and adjusted for inflation," Representative Schuette said. He told colleagues the credit is calculated each year on Aug. 31 and argued that substituting the national CPI would allow future distributions to remain adjusted when federal funds are available.
Representative Schuette thanked AARP Tax-Aide in Midland and a constituent, "Mark Marinin," for raising the issue. A proposed amendment to the bill, offered earlier in the process, was not adopted; the House then advanced the bill to third reading and voted on final passage.
The bill text amends language tied to the Income Tax Act of 1967; Representative Schuette described the change as technical but said it affects how the state indexes the credit going forward. Following passage, the majority floor leader moved for immediate effect; the motion was agreed to.
The change affects the administration of the Michigan Home Heating Tax Credit and applies when the state has federal funds available for distribution under the program. The bill does not itself appropriate new funds.
Votes at a glance: House Bill 4543 — final passage 88-14; immediate effect ordered.
The House adjourned until Wednesday, Aug. 20, 2025, at 1:30 p.m.
