### Question
How is the term closed-loop biomass defined?


### Answer
The term **closed-loop biomass** is defined in *26 U.S.C. § 45* as the following:

> any organic material from a plant which is planted exclusively for purposes of being used at a qualified facility to produce electricity

#### Citation:
  - *26 U.S.C. § 45*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter A-Determination of Tax Liability > PART IV-CREDITS AGAINST TAX > Subpart D-Business Related Credits**

