### Question
What does closed-loop biomass mean?


### Answer
**Closed-loop biomass** has the following meaning in *26 U.S.C. § 45*:

> 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**

