State residents benefit from unique home heating tax credit
JACKSON—In Michigan, winter typically starts after Thanksgiving and often stretches through Easter. That’s a lot of cold weather—and a lot of home heating to provide.
To assist residents with these costs, Michigan has offered a unique home heating tax credit since 1967.
Utilities such as Consumers Energy work actively to encourage new and existing customers to take advantage of the tax break, which has a filing deadline of Sept. 30. “Every year, far too many eligible households fail to claim the Michigan Home Heating Credit, leaving money in Lansing instead of putting it toward their future. Especially for households that don’t typically file income taxes due to low wages, they may still be eligible to receive a home heating credit,” Whitney Skeans, Consumers Energy’s customer assistance manager, told American Gas. “That’s why Consumers Energy asks its employees and customers to encourage family, friends and neighbors to apply. By recovering a portion of the dollars spent heating their homes last year, customers can get a jump ahead on costs for the upcoming season.”
According to Consumers, its customers received an average tax credit of nearly $150 in 2015. The credit is a benefit to any customer using heating fuel; along with natural gas, other forms of heating fuel including electricity, propane, oil and purchased firewood are covered. It is also the only assistance that does not require applicants to fall behind on paying their energy bills, although benefit amounts are based on income and household size. It also might be available to renters who pay their own heating bills.
Consumers provides its customers with a total cost of home heating for the previous year on December, January and February billing statements. The utility promotes the tax credit through news releases, on-hold messages, targeted mailers, and email and social media campaigns to identified low-income customer accounts.
Customers can obtain the home heating credit form by visiting Consumers Energy’s Assistance website, among other sites. The utility’s foundation also provides financial support enabling free tax preparation services, along with help completing the home heating credit form, through Michigan 2-1-1, the Michigan Economic Impact Coalition and other local free or low-fee tax preparation providers.