Apply gift card to subtotal

We want someone to be able to purchase a gift card that will cover the price of a product. If the product was $10.00, the purchaser of the gift card would pay $10.00 plus tax at checkout. The gift card itself would be worth $10.00. This would be used to then purchase the $10.00 product and no tax would be applied as the cart would be empty. However, right now the $10.00 gift card is applied to the total when used, so at checkout the tax is still remaining to be paid. Is there some way via using a Woocommerce hook to optionally apply the gift card value to the subtotal, thus eliminating any tax paid at checkout if this completely covered the cost of the purchase?