2 HEATING ASSISTANCE

Eligibility, 2605(b)(2) - Assurance 2 2.1 Designate the income eligibility threshold used for the heating component: Add Household size Eligibility Guideline Eligibility Threshold 1 All Household Sizes HHS Poverty Guidelines 110.00% 2.2 Do you have additional eligibility requirements for Heating Assistance? Yes No 2.3 Check the appropriate boxes below and describe the policies for each. Do you require an Assets test? Yes No If yes, describe: Do you have additional/differing eligibility policies for: Renters? Yes No If yes, describe: Renters Living in subsidized housing? Yes No If yes, describe: Renters with utilities included in the rent? Yes No If yes, describe: Renters, whose heating costs are included in their rent or if heat service is in someone else’s name, the credit is reduced by 50 percent. Michigan believes that the 50 percent reduction is equitable and within the guidelines of this program since groups whose heat is included in their rent or when the bill is in someone else's name are unable to provide proof of their actual heat obligations and costs. This group is eligible but at a lower benefit amount. HHC allows applicants to provide their actual heating costs therefore those paying actual costs that are greater than the standard credit for the same group size would receive a larger benefit amount. Do you give priority in eligibility to: Older Adults (60 years or older)? Yes No If yes, describe: Individuals with a disability? Yes No If yes, describe: Home Heating Credit (HHC) application captures the number of exemptions allowed for each household with priority given to those who are deaf, disabled, blind or a qualified disabled veteran. Program details and eligibility requirements can be found on the department of Treasury's website: www.michigan.gov/taxes. Below is located in the HHC Booklet- The standard credit calculation is based on the number of exemptions allowed for the household. Based on the number of exemptions the claimant gets a standard allowance amount, with larger amounts for households with more exemptions. The basic credit calculation is the standard allowance less 3.5% of total household resources. Claimants where someone in the household has one the disabilities listed on the HHC application booklet gets an extra exemption, and thus a larger standard allowance. The credit is always bigger for those households. Line 16b: Michigan Special Exemptions: Deaf, Blind, or Certain Disabilities. Complete this line, claiming only one exemption per person as it applies to you, your spouse and your dependents. If your dependent files a credit claim, you or your dependent, but not both, may claim the dependent’s special exemption. You qualify for this exemption if you are deaf, blind, hemiplegic, paraplegic, quadriplegic, or totally and permanently disabled. •Deaf means the primary way you receive messages is through a sense other than hearing (e. g., lip reading or sign language). •Blind means your better eye permanently has 20/200 vision or less with corrective lenses, or your peripheral field of vision is 20 degrees or less. •Totally and permanently disabled means disabled as defined under Social Security Guidelines 42 USC 416. If you were age 66 by August 31, 2024, you may not claim an exemption as totally and permanently disabled. Line 16c: Qualified disabled veteran. Taxpayers may claim an extra exemption if the taxpayer or spouse is a qualified disabled veteran, or a dependent of the taxpayer is a qualified disabled veteran. To be eligible for the additional exemption an individual must be a veteran of the active military, naval, marine, coast guard, or air service who received an honorable or general discharge and has a disability incurred or aggravated in the line of duty as described in 38 USC 101(16). This additional exemption may not be claimed on more than one credit claim. Young children? Yes No If yes, describe: Households with high energy burdens? Yes No If yes, describe: Claimants with high energy usage can take advantage of the alternate credit calculation, based on energy costs, if it gives them a larger credit. Other? Yes No If yes, describe: Explanations of policies for each "yes" checked above: Determination of Benefits 2605(b)(5) - Assurance 5, 2605(c)(1)(B) 2.4 Describe how you prioritize the provision of heating assistance to vulnerable populations, e.g., benefit amounts, early application periods, etc. Heating assistance is administered by the Department of Treasury, which allows low-income households to apply for LIHEAP without having to come to the Department of Health and Human Services or other community agency in order to receive benefits. Requests for the Home Heating Credit can be submitted at the same time tax forms are completed, through September 30 each year. 2.5 Check the variables you use to determine your benefit levels. (Check all that apply): Income Family (household) size Home energy cost or need: Fuel type Climate/region Individual bill Dwelling type Energy burden (% of income spent on home energy) Energy need Other - Describe: The forms for FY 2026 (tax year 2025) will be available in January. The standard credit is structured so that a claimant at 110% of the federal poverty guidelines receives a credit of $1, consistent with Michigan statute [MCL 206.527a(1)(b)]. The maximum credit is generally calculated using the maximum heating cost for the alternate credit, assuming the claimant has no income, and determining the credit amount. For tax year 2024 (FY 2025) that amount is: $3,500 maximum fuel cost – total household resources of $0 x 11% = $3,500 $3,500 x 70% = $2,450 is the alternate credit amount For tax year 2024, all credits are prorated to ensure the total credit does not exceed the available federal funding. The proration factor was 52%, so the maximum credit for tax year 2024 is $2,450 x 52% = $1,274. This same credit calculation will be completed for FY26, tax year 2025, however depending on funding allocated, the proration factor may be different as well as the maximum fuel cost, which could then alter the maximum credit. Using a proration factor of 90%, should the maximum fuel cost and alternate credit amount remain the same, calculation of $2,450 x 90% = $2,205. Therefore, the maximum benefit listed below is an estimate using the proration factor of 52% from FY25 and up to a possible 90% based on calculations above. Exact maximum benefit for FY26 cannot be determined until funding allocation is determined, therefore the maximum benefit may be higher or lower than FY25. Michigan also reserves the right to issue a supplement, funding permitted which may alter the amount issued beyond the maximum benefit indicated. Maximum Benefit to be $1,274 to a possible $2,205, system would not allow entries, therefore entered $2,205, not including a supplement, if issued. Instruction Booklet and application attached for tax year 2024, FY25. As already noted, booklet and application for tax year 2025, FY26 will not be released til January 2026. Benefit Levels, 2605(b)(5) - Assurance 5, 2605(c)(1)(B) 2.6 Describe estimated benefit levels for the fiscal year for which this plan applies. Please note: the maximum and minimum benefits must be shown in the payment matrix. Minimum Benefit $1 Maximum Benefit $2,205 2.7 Do you provide in-kind (e.g., blankets, space heaters) and/or other forms of benefits?2 Yes No If yes, describe. If any of the above questions require further explanation or clarification that could not be made in the fields provided, attach a document with said explanation here.