Tax credits can be refundable or non-refundable. Non-refundable credits are only good against your actual tax bill. Refundable credits, as their name implies, do allow such refunds.
HOPE does come with a few strings attached.
In addition, students who have been convicted of a felony for the possession or distribution of a controlled substance are ineligible. And, students who receive other forms of financial aid such as a Pell Grant will have the amount of their eligibility for HOPE reduced by the amount of aid they receive. In addition to the HOPE tax credit, a number of other Tax Relief Act features make college the best buy it has been in years. Life-long Learning Credit College juniors, seniors, graduate students, adults returning to college and students attending less than half time are eligible for a new lifetime learning credit. The same income restrictions that apply to HOPE are in effect for this benefit.