The answer to your question is that the Oregon Residential Energy Tax Credit is a nonrefundable credit -- meaning that claiming this credit can only take your Oregon state tax liability down to zero (and not below zero, which is the very definition of a refundable credit).
However, unused Oregon Residential Energy Tax Credits can still be carried forward to future tax years.
According to Oregon Department of Revenue Publication 17 (2016), Page 116, Code 861 (Residential Energy Credit), the following is true of this credit:
"The credit cannot be more than your tax liability for Oregon. You may carry forward any unused credit for up to five years. If you do not use the credit within five years, it is lost."
You may verfiy this, by reading it for yourself, at the following link:
https://www.oregon.gov/DOR/forms/FormsPubs/publication-or-17_101-431_2016.pdf
Additionally, for more information on entering this credit into TurboTax, as well as for mechanical instructions on how to do so, please refer to the following AnswerXchange post:
https://ttlc.intuit.com/questions/3682266-how-do-you-enter-the-oregon-residential-energy-tax-credit
Thank you for asking this question.
