Both businesses and individuals may take advantage of this tax credit. For individuals, the credit is officially called the “Residential Clean Energy Credit.” To claim it, homeowners file IRS form 5695. You can find detailed information in the Energy Department’s Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics. To be eligible, an individual must OWN the solar photovoltaic and/or battery energy storage equipment (as opposed to LEASING it) and it must be installed on the primary residence (as opposed to a second home). There are no income requirements or maximums. The tax credit is not a rebate; instead it reduces your federal tax bill. For example, if you paid $40,000 to install a solar and battery system in the current tax year, when you file your tax return for that tax year, you would reduce the amount you owe in taxes by $12,000 ($40,000 * 30% = $12,000). For businesses, the tax credit is a bit more complicated. The amount of the tax credit (between 6% and 50%) will depend on factors such as whether the installed equipment was imported, whether the installation met Department of Labor requirements for wages and apprenticeships, and even where the project is located. The Energy Department offers a guide to the Federal Solar Tax Credits for Businesses. To claim the credit, businesses file IRS form 3468.