LANSING – State Representative Robert Dean (D-Grand Rapids) today voted for a plan to create an income tax checkoff for a home heating credit. This new option provides Michigan residents with a convenient way to voluntarily contribute to the Home Heating Credit Fund.
"It's been a bitterly cold winter in Grand Rapids, and home heating costs are continuing to climb," Dean said. "Sadly, many of our working families and seniors living on fixed incomes are struggling to pay their utility bills during these difficult economic times. This plan will give the generous residents of Michigan a convenient way to contribute to their neighbors in need."
Checkoff boxes, which allow taxpayers to designate a portion of their tax return, are commonly used on income tax forms. Michigan currently has income tax checkoffs for the Children's Trust Fund, the Children of Veterans Tuition Grant Program and the Military Family Relief Fund.
According to the House Fiscal Agency, this checkoff could generate between $500,000 and $1.5 million, based on data from Michigan and other states. The plan would allow taxpayers to contribute $5 or more to a newly created Home Heating Credit Fund, which would provide additional revenue to pay for home heating credits for low-income families. By supplementing credits that are not fully funded with federal block grants, the plan would expand the number of Michigan families who are able to receive help paying their heating bills.
"Money from this checkoff option would make a world of difference for families struggling to keep warm," Dean said. "No one should have to make the choice between buying their groceries or paying the utility bill. This income tax checkoff option is entirely voluntary, and provides Michigan residents with the opportunity to show their compassion for their fellow citizens."