Residential Energy Credit now showing as refund

[505blrober]

We installed equipment that qualifies for the Residential Energy Credit (Form 5695).

Several weeks ago, TurboTax showed that this credit zeroed out our Federal taxes owed which seems correct.

Today I reopened our taxes in TurboTax, after updating of course, and now it shows a substantial Federal tax refund.  My understanding is that the REC credit is not refundable, so this does not seem correct.

When I remove the REC credit TT shows we owe Federal taxes so the refund seems to be fully generated by the REC credit.

I double checked with IRS documents and REC is not currently refundable.

What is going on here?

Thanks

[MayaD]

You are correct. The credit is nonrefundable, so the credit amount you receive can reduce your total tax to zero if you have enough credit but can't exceed the amount you owe in tax. 

However, any withholding over the amount of your tax liability will be refunded to you. 

[505blrober]

Thanks for your reply!