Tax Credits Come Back in Refund?

tax credits are exactly that, credits

very likely if you don't have tax liability the energy tax credits are not refundable

the American Opportunity might be

Most tax credits only reduce your tax liability. If you do not owe tax the credit is of no benefit. Those are called non-refundable credits because you do not get the unused portion as part of your refund. A refundable credit is one for which you received any unused portion as a refund. The American Opportunity Credit for education is both. The first 40% is refundable if not used to cover tax liability. The energy credit for your furnace is a non refundable credit for which you receive nothing if you do not have tax liability. NY state may have a different approach for the state education credit.

Any tax that you may owe before credits is first reduced by your education credit. If you are using the American Opportunity Credit, your taxes may be reduced by up to $1,500. In addition, if you have enough expenses, you may also receive a payment of $1,000. This credit is split 60-40 between using the credit to reduce taxes you owe, and issuing you a payment. Any of the 60% nonrefundable part that is not needed is not paid to you and not applied to future tax.

After applying the education credit, you will use your $1,500 energy credit to reduce any other taxes that you owe. You indicate that you will not be using all of this credit to pay tax. The unused credit is not issued as a payment to you. However, the unused credit is carried forward to 2011 and will be used to reduce your taxes in 2011. So really you do get the full dollar value of this credit against taxes you owe.

The Residential Energy credit for roofs/windows/furnaces is NON-refundable. If you don't owe any income tax, it is worthless to you.

The American Opportunity Education credit is partially refundable, but no more than $1000.

If it is a "refundable" credit, yes. If it is a "nonrefundable" credit, no.