How is a $50,000 refundable tax credit supposed to be financially neutral? That's very clearly a financial gain! A refundable tax credit means that the donor will receive either a credit on federal taxes for five years of $10,000 per year if they pay federal taxes, or a check from the government for $10,000 for five years if they do not pay federal taxes. That would be a life-changing amount of money for a lot of people.