@gjgogol
<<Therefore, if you anticipate a low tax liability for the year you make the improvements, you might want to adjust your tax withholdings during the year to ensure you have enough tax liability to offset with the credit.>>
Sorry, you are confusing things.
The INCOME tax liability is the INCOME tax liability. It is line 22 of form 1040. Line 18 is the INCOME tax itself and lines 19-21 reduce the INCOME tax by any non-refundable credits.
No matter how high or how low the tax withholdings are, the tax liability is not impacted. Withholdings begin on line 25.
Now read the Help section again with that understanding. It is accurate. 😀
https://www.irs.gov/pub/irs-pdf/f1040.pdf
