Michigan residents can apply for the Michigan Home Heating Tax Credit until Sept. 30

Tax credits are not just for tax season. The Community Economic Development Association of Michigan (CEDAM) is encouraging low- to moderate-income residents across the state to apply for the Home Heating Credit before the deadline of Sept. 30.

Each year, the Home Heating Credit is available to Michigan residents. This year there is $120 million allocated to provide qualified homeowners and renters in Michigan with heating assistance through the Home Heating Credit. This amount is significantly higher than previous years due to an additional $70 million in funding from the federal American Rescue Plan Act.

“The Michigan Department of Health and Human Services (MDHHS) wants to increase access to and usage of the Home Heating Credit program,” said MDHHS Director Elizabeth Hertel. “We are working with CEDAM to help get the word out to residents who need help keeping their heat turned on ahead of the fall and winter months.”

CEDAM was awarded a $1 million grant earlier this year to increase access to the Home Heating Credit benefit and free tax preparation services, and, in partnership with the Michigan Department of Health and Human Services, they are encouraging Michigan homeowners and renters to apply.

“Every family should be able to keep the heat on and stay warm and safe through our Michigan winters,” said Governor Gretchen Whitmer. “I am proud of the work we have done to fund and expand the Home Heating Tax Credit, and I urge families to apply by September 30 so they can be ready for the fall and winter. This credit goes directly to qualified homeowners and renters in Michigan, lowering their costs and saving them money to pay other bills and put food on the table. I will work with anyone to offer families real relief, and I am grateful to the Community Economic Development Association of Michigan for their work in getting this done.”

Last year, the average household received $216 from the Home Heating Credit benefit to reduce their residential heating costs. Additionally, recipients of food assistance benefits that have received a Home Heating Credit of greater than $20, may be eligible for an increase in their benefits.

“Eligible individuals should not wait to apply for the Home Heating Credit with the September 30 deadline approaching,” said State Treasurer Rachael Eubanks. “This important tax credit can provide some relief as we enter into the fall heating season, leaving more money available for other critical needs.”

In order to qualify, residents must be a homeowner, or a renter with a contracted lease and meet income requirements. The best way to apply for the Home Heating Credit, and a number of other tax credits available to Michigan residents, is to book an appointment at a local free tax preparation site.

“There are over 70 locations across Michigan where residents can go to meet with trained, expert tax professionals at no cost,” said Matt Hetherwick, director of individual tax programs at Accounting Aid Society. “Everyone should file a tax return, even if they are not required to, because tax credits and benefits are waiting to be claimed.”

Free tax preparation is a community service designed to help Michigan residents improve their financial wellbeing. Residents who qualify for free tax preparation include those with disabilities, those with limited English-speaking ability and those who earn less than $58,000 per year. Tax preparation providers are trained volunteers who are experts in taxes and have an accuracy rate, on average, higher than their for-profit colleagues.

If you are looking to talk with an experienced CPA about this credit, reach out to us today at: ATS ADVISORS