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SB 435

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).

2025-2026 Regular Session Introduced by Sam Singh

Michigan bill shifts home heating tax credit annual adjustments from U.S. CPI to Detroit CPI, potentially altering tax relief amounts for low-income households with heating costs.

referred to Committee on Government Operations
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Bill Summary · SB 435

Legislative bill overview

SB 435 modifies Michigan's home heating credit by changing how the credit is adjusted annually—shifting from the U.S. Consumer Price Index (CPI) to the Detroit Consumer Price Index (CPI-D). The home heating credit is a tax benefit that helps low- and moderate-income households offset heating costs during winter months.

Why is this important

The Detroit CPI often differs from the national CPI, meaning this change could increase or decrease the annual adjustment to the credit amount. Since heating is a necessity with significant costs for Michigan residents, this adjustment mechanism directly affects how much tax relief low-income households receive each year. The rapid legislative movement (committee approval through third reading in a single day) suggests this may be a technical or consensus measure.

Potential points of contention

  • Regional price variation: Detroit CPI may not accurately reflect heating costs across Michigan's diverse regions (Upper Peninsula, rural areas, and suburban communities experience different price pressures)
  • Predictability concerns: Switching indices could create inconsistent year-to-year adjustments, making it harder for households to budget if the Detroit index is more volatile than the national index
  • Benefit adequacy: Depending on which direction the adjustment moves, the credit could become either more or less generous without explicit legislative intent to change benefit levels

Compiled from official sources — confirm details with the bill’s official record.

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