Ray's accountant informed him that he qualifies for the American opportunity tax credit because he is a full-time student at the local university. Assuming Ray qualifies for a $2,500 tax credit, this means the credit will?

A.. reduce his taxable income by 2,500.

B. increase his itemized deductions by 2,500

C. guarantee him a tax refund of 2,500

D.reduce his taxes owed by 2,500