Yes, the business mileage is multiplied by the .575 per mile rate to determine the income deduction amount. That deduction amount is subtracted from your taxable income. The lower taxable income means lower taxes based on your tax bracket. So if you are in the 10% tax bracket then you will see a tax reduction of about 10% of the income deduction. For example a $3000 income deduction will result in a $300 tax reduction.
That differs from a tax credit which is a dollar for dollar reduction in the tax due.
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