The 2022 Inflation Reduction Act extended and modified the existing energy credit through 2034, and modified the applicable credit percentage rates. Therefore, the credit is 30% for property placed in service after December 31, 2021, and before January 1, 2033. Please see Residential Clean Energy Credit for additional information.
Yes, the credit is non-refundable which means it only can reduce your tax due to $0 and the unused credit is carried forward. It seems you had still some tax due on line 18 of Form 1040 and therefore you were able to use some of the credit and your refund increased.
Please see Energy Tax Credit: Which Home Improvements Qualify? for additional information.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
