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Yes - that credit will reduce your tax liability.It is not refundable - so if you do not have any tax liability - you woudl not be able to use the credit - but in such situation you can carry the credit over to the following tax year.
Here is the form to calculate the credithttps://www.irs.gov/pub/irs-pdf/f5695.pdfand instructionshttps://www.irs.gov/pub/irs-pdf/i5695.pdfon form 1040 the credit is reported on line 53
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