No, I didn't mean they would be withheld for your home improvement, I meant in general.
Say you earned $50,000 and your employer withheld $9,000. You have a tax liability before the credit of $10,000 so you would have to pay in $1,000. However, you get an energy credit for $3,00. This reduces your tax liability to $7,000 so now instead of owing $1,000 you are getting a refund of $2,000. You still have a tax liability of $7,000, but since your employer withheld $9,000, you are getting a refund of the extra $2,000.
Look at line 16 of your return to see your original tax liability, then look at line 20 for your schedule 3 credits (this is where the energy credits are) then look at line 24 for your total tax after non refundable credits then compare this number to line 25a for your withholdings from your wages. If line 25a is greater than line 24, this would result in a refund of your taxes withheld.
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