Christmas may be over, but we still have months of freezing cold temperatures ahead. Between the rising cost of living and the sheer amount of money we just spend during the recent festivities, the heating costs might prove too much to bear for many families across the Midwest. That is why beginning January 1, qualifying Michigan households can pick up a one-off $250 payment through the Low Income Energy Assistance Program (LIHEAP) to help handle their utility bills.
The Michigan State Treasury Department is managing the payouts, which are specifically for people who use the state’s biggest utility company, Consumers Energy. The provider has put out a call encouraging anyone who qualifies to go ahead and apply.
In a public message, the company mentioned that with winter on the way, they are prepared to step up for customers who might be struggling to keep the heat on this season. If you live in Michigan and have to keep a tight budget just to prevent your pipes from freezing in winter, you might be interested in this program.
Who can apply for the Michigan home heating tax credit?
Residents need to satisfy a specific set of rules to get this credit. The Michigan Department of Treasury notes that you might be eligible if every one of the following points describes your situation:
- You did not live in college or university housing for the full 2025 tax year.
- You were not a full-time student listed as a dependent on someone else’s 2025 tax return.
- You owned a home or had an agreement to pay rent for a place you actually lived in Michigan during 2025 (this must be your main home).
- You did not spend the entire year living in a full-time care facility, such as a nursing home or rehab center.
Income Eligibility: How Much Can You Earn?
To qualify for the Home Heating Credit, your household income must fall below specific caps. Michigan uses two different formulas to determine this, effectively giving you two chances to qualify.
The Standard Method (Table A) This path usually favors larger families. The income limit increases significantly for every person in your household.
- 1 Person: Income must be under $16,586
- 2 people: Under $22,500
- 3 people in the household: Under $28,414; and
- 4 unit members: Under $34,328.
The Alternate Method (Table B) This path often helps smaller households who might earn just a little too much for the Standard Method.
- 0-1 person: Income must be under $18,111;
- 2 people: Under $24,371;
- 3 people: Under $30,636; and
- 4 or more family members: Under $32,782
Quick Tip: If you qualify under both methods, you are allowed to choose the one that gives you the bigger refund. Always check the math for both before filing.
How do I file for the Home Heating Credit (MI-1040CR-7)?
You can submit your claim either by mail or online. If you already have to file a standard Michigan tax return (MI-1040), just include the heating credit form along with it. If you don’t need to file a regular tax return, you can send in the heating credit form by itself.
Be sure to get your claim in by the September 30 deadline. If you can’t print the form at home, you can pick up a physical copy at your local library, MDHHS office, community agency, or directly from the Department of Treasury. Once you have it, simply send it in digitally or through the mail.
FAQs
Can I get this if I don’t file regular taxes?
Yes! Even if you don’t usually file a tax return because your only income is Social Security, you can still apply. You just need to send in the specific “Home Heating Credit” form (MI-1040CR-7) by itself.
Am I eligible?
You likely qualify if you live in Michigan, have a low income, and either own your home or pay rent. However, you cannot get it if you lived in a nursing home, rehab center, or college dorm for the entire year.
How much money can I make and still qualify?
It depends on how many people are in your house. See the tables. If you live alone, your income usually needs to be under $16,586 (or up to $18,111 in some cases). If you are a couple, then it’s under $22,500 (or up to $24,371). There are two ways to calculate this, so check the form to see which math works best for you.
How do I apply?
You can fill out the form online or mail it in.