Yes, the credit is used to reduce your federal tax liability. So in your case if you have a tax liability on line 16 of your form 1040 of $55,000, and you have a solar credit of $15,000, your tax liability would be reduced to $40,000. So on line 24 of your 1040, you would have a tax liability of $40,000 (assuming no other credits). Then, if you had $55,000 withheld from your wages, you would end up with a refund of $15,000 as your tax liability would have been reduced and now you are getting back what you paid in.
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