How does the program work?
The Michigan Home Heating Credit Form
MI-1040CR-7
is filed with the Department of Treasury. If the filer is eligible for a Home Heating
Credit, an energy draft is generally issued directly to the claimant for
them to submit to their energy provider to receive credit for their energy
costs. Exceptions to this rule include:
- Some Department
of Human Services (DHS) customers have their energy draft sent directly to their
providers.
- Renters whose heat cost is included in their rent receive a warrant
instead of a draft.
- Where it is impractical for the claimants to redeem their draft with an
energy provider, the claimant may exchange their draft for a warrant with
Department of Treasury.
The enrolled energy provider accepts the energy draft as payment and applies
that payment to the claimant?s account. The enrolled energy provider then
submits the drafts to the Department of Treasury for reimbursement.
What are Energy Drafts?
- Energy Drafts are vouchers issued to qualifying households that file a
Michigan Home Heating Credit claim (MI-1040
CR7 ).
- Each draft is given a number corresponding to the year it was issued and
an expiration date. The energy drafts must be used before the
expiration date that appears on the draft.
- The energy draft cannot be cashed at stores or banks.
How is the energy draft used?
- Energy draft recipients submit their drafts to an enrolled energy provider
when paying home heating bills or when purchasing heating fuel for their
homes.
- An energy draft can only be used by the person(s) named on the energy
draft.
|
Enrollment
and Payment Process for Energy Providers |
Who are Energy Providers?
Energy providers are companies or individuals who supply home heating fuel
(fuel oil, LP gas, coal, electricity, kerosene, wood, or natural gas) at retail
to residential customers. Secondary suppliers, such as residential landlords or
residential management companies, are not considered energy providers and are
not eligible to enroll as providers in LIHEAP.
How Does an Energy Provider Become Eligible to Accept Energy Drafts?
Energy Providers must enroll in LIHEAP through the State of Michigan in order
to accept energy drafts from their customers. The Energy Supplier Participation
Agreement (Form
DHS-0355
) must be completed and submitted to the
Department
of Human Services (DHS).
The Department
of Human Services (DHS) determines eligibility and if approved,
enrollment becomes effective immediately. Certain requirements, such as
non-discriminatory billing practices, must be strictly followed in accordance
with federal and state statutes. These requirements are outlined in
Form
DHS-0355
.
How Are Energy Drafts Applied to Customers? Accounts?
- The energy draft can only be applied to a bill for a residential account
or toward the purchase of home heating fuel.
- Enrolled energy providers must credit the appropriate customer account upon
receipt of an energy draft.
- Enrolled energy providers should accept drafts only if the draft is being
used to pay a heating bill or for home heating fuel. Do not issue cash
refund for the full amount of a draft. Do not accept drafts from customers
if they are requesting a refund only. Inform the customer to return the
draft to the State for a refund.
What if a customer?s draft amount exceeds the outstanding bill or purchase
amount?
Customers who have not received any home heating assistance within the last
12 months may receive the overpayment. If the draft amount is in excess of
their balance with their provider, the customer must request to have any
excess balance refunded to them by checking the appropriate box on the energy
draft. The provider is to issue payment within 14 days to the customer.
Energy providers are to apply the energy draft to the customer?s
outstanding balance and any remaining draft amount is to be applied to
future bills for a period of up to nine months. This applies only if
the customer has received home heating assistance from DHS, a governmental
agency or a non-profit organization within the last 12 months, exclusive of
a Home Heating Credit (MI-1040CR-7
).
The provider is to then issue payment within 14 days to their customer for
credit balances remaining after the nine months have elapsed or the date of
service termination by the customer, if sooner than nine months.
How are Energy Drafts Redeemed by Providers?
-
Enrolled energy providers should redeem energy drafts by submitting them with a
properly completed Batch Header Form to the Michigan Department of Treasury.
Refer to the Batch Header Instructions (Form 4243)
when completing the forms for submission.
See an example
of a complete Batch Header Form . Treasury will issue payment for drafts within 14 days of
receipt.
-
Mail the Batch Header Form with the energy draft(s) to:
Department #77127
State of Michigan Energy Draft Redemption
P O BOX 77000
Detroit MI 48277-0127
-
Mail damaged energy drafts, with a completed Batch Header Form, to the Energy
Draft Unit for correction or replacement before they are processed. Mail to:
Michigan Department of Treasury
Finance & Accounting Division ? Energy Draft Unit
P O Box 15128
Lansing MI 48901
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