### Question
How is the "eligible cooperative" defined?


### Answer
The term **eligible cooperative** is defined in *26 U.S.C. § 45* as follows -

> a cooperative organization described in section 1381(a) which is owned more than 50 percent by agricultural producers or by entities owned by agricultural producers

#### 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**

