We received a tax credit from the state of Ohio as an incentive for Technology Investment. Is this taxable?

We paid estimated taxes in 2007 and because of the credit recvd a hefty refund.

This year we owe state taxes because we knew we had the credit, so no refund. It's a wash.

Turbotax is trying to say we owe money on the refund of last year. I know their program has been wrong before. Any idea where I can find confirmation of this on the IRS website?

THKS!