SB 435 Michigan Senate · 2025-2026 Regular Session

Individual income tax: home heating credit; adjustments based on Detroit Consumer Price Index; change to United States Consumer Price Index. Amends sec. 527a of 1967 PA 281 (MCL 206.527a).

SB 435 adjusts Michigan's home heating credit for individual income tax by changing the inflation index used to calculate the credit amount. Instead of using the standard U.S. Consumer Price Index (CPI), the bill requires the Detroit Consumer Price Index (CPI) to determine annual credit adjustments. This change directly affects Michigan residents who claim the home heating credit, particularly those in Detroit or areas with cost-of-living patterns reflected in the Detroit CPI. The policy modifies how the credit amount is updated each year to better align with local heating cost trends, rather than national averages.

Issues: ✓ Budget & Taxes

Bill status passed 3 of 5 stages cleared

Introduction

Jun 2025

Committee Review

Aug 2025

Senate Passage

Aug 2025

House Passage

Governor

Introduced Jun 24, 2025 Last action Aug 13, 2025

Maddy AI version diff · 1 comparison

What changed between versions

Senate Introduced Bill → As Passed by the Senate · 5 edits · Aug 13, 2025

MODERATE

The bill was reformatted to standard legislative text and includes substantive changes to the home heating credit program, including new provisions for credit calculation, payment methods, and enforcement. The changes clarify how credits are applied to heating bills, establish rules for when credits expire, and add requirements for weatherization assistance referrals.

Scope change

The bill's scope expanded to include detailed procedures for credit application, payment distribution, and enforcement mechanisms that were not present in the original introduction.

REQUIREMENT

New subsections added to clarify how energy drafts are applied to heating bills, including rules for when credits expire and how remaining balances are handled.

New requirement for the department to refer eligible claimants to weatherization assistance programs and for providers to offer home energy analysis to high-usage customers.

ENFORCEMENT

Added provisions requiring heating fuel providers to notify customers of credit availability and specifying consequences if providers fail to provide necessary information.

ELIGIBILITY

Added restrictions stating that full-time students claimed as dependents are not eligible for the credit, and clarified that only renters can claim credits on rental properties.

TECHNICAL

Text was reformatted from introduction draft style to final enacted legislative format, including proper section numbering and structure.

Floor votes · Senate Aug 13, 2025

How they voted

33–0

Passed · 5 other

Total votes 38

Aug 13, 2025

D Democratic19

18 Yea 1

94% Yea

R Republican19

15 Yea 4

78% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Aug 13, 2025

Committee

referred to Committee on Government Operations

lower

Aug 13, 2025

Introduced

received on 08/13/2025

lower

Aug 13, 2025

Upper · Passed

PASSED ROLL CALL # 211 YEAS 32 NAYS 0 EXCUSED 5 NOT VOTING 0

upper

Aug 13, 2025

Upper · Passed

REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)

upper

Aug 13, 2025

Upper · Passed

DISCHARGE COMMITTEE APPROVED

upper

Jun 24, 2025

Committee

REFERRED TO COMMITTEE ON ENERGY AND ENVIRONMENT

upper

Jun 24, 2025

Introduced

INTRODUCED BY SENATOR SAM SINGH

upper

1 primary · 0 co-sponsors