Legislation from State Representative Bill G. Schuette that will protect a critical tax credit and save people money across the state today was advanced by the Michigan House.

House Bill 4543 ensures the Michigan Home Heating Tax Credit, a program established in 1967 and utilized by more than 250,000 residents statewide, stays up to date and adjusted for inflation.

“Michigan winters can be extremely harsh, and the cost of heating our homes continues to rise,” Schuette said. “This credit provides needed relief to low-income Michiganders we all represent to help them cover that cost. This bill takes note of recent changes in how this relief is calculated and ensures its protection going forward.”

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.

HB 4543 replaces the Detroit CPI with the US National CPI, ensuring that any time the state has funds to distribute thought this credit, they are properly adjusted to best suit the needs of Michiganders.

When speaking on the legislation before the House, Schuette thanked a local AARP tax service within his House district in Midland and constituent Mark Marinan for bringing the need for reform to his attention. The plan, which received broad bipartisan support, now moves to the Senate for further consideration.

PHOTO INFORMATION: State Representative Bill G. Schuette speaks on House Bill 4543 on Tuesday, Aug. 19.