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hi this is Tim Marquez and I'd like to explain the federal tax credit often I'm asked what is the federal tax credit and how does it work well I'd like to kind of clear that up for you is in a real short video here and the way it goes is like this first of all you're going to need form 5695 and you should be able to find that very easily either on the IRS website or by your tax person the federal tax credit is a tax liability refund so when you are earning income you have a gross income the government is going to tax that amount of money that money if it's tax is now eligible to be refunded right back to you to help pay for your solar so I kind of call it a use-it-or-lose-it type of federal tax credit so hypothetically speaking if you're earning a hundred thousand dollars a year in income and I use that as a real roundabout number so people can see the percentage is how it works hard thousand dollar income is probably going to have roughly around a twenty percent federal tax liability

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