The federal solar tax credit, also known as the investment tax credit (ITC), allows homeowners to deduct a portion of the cost of installing a solar energy system from their federal taxes. The tax credit allows for a deduction of 30% of the cost of the solar system. This incentive is designed to encourage the use of solar energy and reduce reliance on traditional energy sources. It's important to note that the tax credit percentage is subject to change in the future, so it's best to consult with a tax professional for the most up-to-date information.

For a more in-depth explanation

https://www.solar.com/learn/how-to-file-the-federal-solar-tax-credit-a-step-by-step-guide/

Tax Forms required

Form 1040

Schedule 3 (Form 1040)

Form 5695

Instructions for Form 5695