Understanding T4: <#@ output #> directive
Here is how MSDN documentation defines the output directive.
By using the output directive, you can specify characteristics of the generated text output, such as the file name extension
This directive does not affect code of GeneratedTextTransformation. Instead, it results in SetFileExtension and SetOutputEncoding methods of the ITextTemplatingEngineHost being called when the compiled template is executed.
About T4
T4 (Text Template Transformation Toolkit) is a template-based code generation engine. It is available in Visual Studio 2008 and as a download in DSL and GAT toolkits for Visual Studio 2005. T4 engine allows you to use ASP.NET-like template syntax to generate C#, T-SQL, XML or any other text files.
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