By: Jasmine West
For Michigan households already stretching paychecks across rent, groceries, medicine and utility bills, the approaching heating season brings another expense that cannot simply be skipped.
Low-income renters and homeowners have until Sept. 30 to apply for Michigan’s Home Heating Credit, a state tax credit intended to offset some of the cost of keeping a home warm. Unlike many tax credits, residents do not necessarily have to owe income taxes or even be required to file a traditional state income tax return to apply.
The deadline comes as energy affordability has become a larger issue across Michigan. About one-quarter of Michigan households spend more than 6% of their income on electricity and natural gas, according to the Michigan Public Service Commission. Among lower-income households, that share of income can climb considerably higher.
That means even what may appear to be a routine monthly utility increase can carry a different weight for someone living on $20,000 or $30,000 a year.
Last year, Michigan households that qualified for the Home Heating Credit received an average of $171, according to the state. The money is often sent directly to a household’s utility provider and credited toward the customer’s account.
The credit may not erase a winter heating bill, but for families already deciding which expenses get paid first, it can create some room in a monthly budget.
“No one should have to choose between keeping the heat on and affording their basic needs,” Gov. Gretchen Whitmer said Tuesday in announcing the filing deadline. “This credit helps families save on their heating bills, putting more money in their pocket for the essentials like food, medicine, and rent.”
Michigan’s struggle with energy affordability extends beyond the price of natural gas used for heating. Electric bills have also increased this year for customers of the state’s two largest utilities.
In February, the Michigan Public Service Commission approved a $242.4 million electric-rate increase for DTE Energy. A typical residential customer using 500 kilowatt-hours of electricity each month saw an estimated $4.93 increase in the monthly bill beginning March 5, a 4.6% increase. DTE had originally sought approximately $574 million.
Then in March, regulators approved a $276.6 million increase for Consumers Energy. Residential electric rates increased 8.9% under that decision beginning May 1.
Those increases are not necessarily the end of the debate over what customers will pay.
DTE returned to regulators this spring seeking another approximately $474 million annual electric-rate increase. Michigan Attorney General Dana Nessel’s office said the proposal would amount to roughly a 10% residential increase and has asked regulators to approve only a fraction of the request. Consumers Energy also filed another electric-rate case this summer seeking about $456 million annually, including a requested residential increase of nearly 10%. Both cases remain part of a broader fight over affordability, reliability and how much customers should be required to pay for utility investments.
The pressure has pushed state regulators to rethink how Michigan measures whether energy is actually affordable.
In June, the Public Service Commission established a statewide goal that income-constrained households should spend no more than 6% of their income on electricity and natural gas combined. The benchmark divides that target into roughly 4% for electricity and 2% for natural gas. Regulators are also moving toward payment programs designed around household income rather than primarily responding after customers fall behind.
The problem is especially pronounced among households with the least room in their budgets.
A 2026 study examining 57 mostly low-to-moderate-income Detroit households found that the lowest-income households in the study had a median electric energy burden of 6.4% of household income. The highest-income households studied spent a median 1.6%. The study looked only at electricity, meaning other home-energy costs could add to that burden.
Put another way, two households may receive similar utility bills while experiencing those bills completely differently. A $150 monthly energy cost represents 1.8% of income for someone earning $100,000 a year. For a household surviving on $25,000, that same $150 every month consumes more than 7% of annual income before rent, food, transportation, child care or medical expenses are considered.
Michigan’s Home Heating Credit is aimed at households near the bottom of that income scale.
Eligibility generally requires residents to own their Michigan home or be responsible for rent under a lease and meet household-income requirements. The Michigan Public Service Commission lists the program as generally serving households at or below 110% of the federal poverty level, though the actual credit is calculated using household resources, household size and heating costs.
The credit is claimed through Michigan Form MI-1040CR-7. People who are required to file a Michigan income tax return can submit the form with their return. Residents who are not otherwise required to file an income tax return may submit the Home Heating Credit form by itself.
There is one important catch: Sept. 30 is a hard deadline.
The credit cannot be claimed retroactively after the deadline, meaning an eligible household that does not file this month loses access to this year’s benefit.
“Many families qualify for support but never receive it simply because they do not file,” Ben Dowd, acting executive director of the Community Economic Development Association of Michigan, said in the state’s announcement.
Some recipients may receive additional help beyond the initial credit. Certain utility companies automatically provide qualifying customers with additional income-based bill credits that can be worth as much as $20 per month. Seniors, people with disabilities and veterans who receive food assistance and a Home Heating Credit exceeding $20 may also qualify for increased food benefits, according to the state.
For households whose utility debt extends beyond what the heating credit can cover, other programs are available.
Michigan’s State Emergency Relief program can help eligible residents whose heating or electric service has been shut off or is in danger of disconnection. The Michigan Energy Assistance Program can also help qualifying low-income households pay electricity, natural gas, propane, heating oil and other home-energy costs.
That assistance system is expanding. Changes approved by the state are expected eventually to increase the number of Michigan households receiving assistance through the Michigan Energy Assistance Program from roughly 55,000 annually to more than 150,000, according to the Public Service Commission.
Beginning with September bills, customers of participating electric utilities will also see a $1.50 monthly Low-Income Energy Assistance Fund charge per residential meter. The money finances the state’s energy-assistance program for eligible households.
Residents who want help applying for the Home Heating Credit can call 211, text 898211 or use Michigan’s free tax preparation network. Forms are also available through the Michigan Department of Treasury, libraries, MDHHS offices and participating community agencies.
As another Michigan winter approaches, the Sept. 30 deadline is ultimately about more than filing another tax form. For households already carrying utility balances or watching energy consume a growing share of their income, missing the deadline means leaving available help on the table at the exact time heating costs are preparing to return.