In a significant affordability win for Michiganders, 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 was recently signed into law by the governor.

House Bill 4543, now Public Act 55 of 2025, ensures the Michigan Home Heating Tax Credit, a program utilized by more than 250,000 homeowners and renters statewide, stays up to date and adjusted for inflation.

“We have seen a lot of partisan gridlock in Lansing this year and not a lot of bills have become law, but I am proud we came together with this plan to make life more affordable for low-income Michiganders we all represent,” Schuette said. “This is a program that has helped people in our area and throughout the state cover heating costs for themselves and their families for more than 50 years, and it was important to keep it going given recent federal changes. I remain committed to helping our state be an even better place to live, work and raise a family, and affordability is a massive part of that equation.”

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.

The new law 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.

The bill previously advanced overwhelmingly through the House and Senate before reaching the governor’s desk.