20160309final_order_no_33479.pdf

Office of the Secretary
Service Date
March 9.2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
ALBION TELEPHONE COMPANY SEEIUNG A)CASE NO.ALB-T-16-01
BROADBAND EQUIPMENT TAX CREDIT FOR)
2015.)ORDER NO.33479
____________________________________________________________________________________________)
On February 18,2016,Albion Telephone Company applied to the Commission for an
Order confirming that equipment it installed in 2015 is “qualified broadband equipment’under
Idaho Code §63-30291 (Income tax credit for investment in broadband equipment).
THE APPLICATION
Albion states in its Application that during calendar year 2015,it made investments in
Butte,Cassia,Custer,and Oneida counties.Albion states that it “deploy[ed]fiber in the loop.
fiber to the home (FTTH).and expanded the fiber backbone by adding redundant rings.’The
Company states further that it “added ten miles of copper and duct and 605 miles of fiber cable
and duct.”Albion states that its various broadband digital subscriber line services (ADSL,
IDSL.HDSL.and SDSL)as well as FTTH is available to 99%of its customers at network
transmission rates of 3 Mbps to 100 Mbps.According to Albion,the 2015 broadband investment
is approximately $7.3 million.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §63-30291 allows a taxpayer to receive an income tax credit for having
installed qualified broadband equipment during a calendar year.Before the taxpayer is eligible
for the tax credit,the taxpayer must first apply to the Commission for an Order confirming that
the installed equipment is qua1ified broadband equipment’as defined in the statute.Idaho
Code §63-3029I(4).That statute defines “qualified broadband equipment”as equipment that “is
capable of transmitting signals at a rate of at least [200,000 bps]to a subscriber and at least
[125,000 bps]from a subscriber.”Idaho Code §63-30291(3)(b).In addition,qualified
broadband equipment must be ‘primarily used to provide services in Idaho to public
subscribers.”Idaho Code §63-30291(3)(b)(vii).Further,in “the case of a telecommunications
carrier,such qualifying equipment shall be necessary to the provision of broadband service and
an integral part of a broadband network.”Idaho Code §63-30291(3)(b)(i).
ORDER NO.33479 1
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784 that specifies the information the taxpayer must include in a broadband tax credit
application.When the taxpayer files the application,the Commission Staff reviews it to
determine whether the listed equipment meets the statutory definition of “qualified broadband
equipment.”Staff then submits a recommendation to the Commission.If the Commission
ultimately approves the application,then the Commission forwards it and the Order approving
the application to the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed Albion’s Application under Idaho Code §63-30291 and Commission
Order No.28784.Based on its review,Staff believes that Albion is a telecommunications carrier
and that the listed equipment meets the statutory criteria of “qualified broadband equipment”
eligible for the tax credit.Staff thus recommended the Commission:(1)issue an Order
confirming that Albion’s equipment is “qualified broadband equipment,”and (2)forward copies
of the Application and this Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the broadband tax credit,a taxpayer must first obtain
an Order from the Commission “confirming that the installed equipment is qualified broadband
equipment.”Idaho Code §63-30291(4).“In the case of a telecommunications carrier,such
qualifying equipment shall be necessary to the provision of broadband service and an integral
part of a broadband network.”Idaho Code §63-30291(3)(b)(i).
Based upon our review of Albion’s Application and the recommendation of Staff,we
find that the Application requesting a qualified broadband equipment Order should be approved.
Albion has adequately demonstrated that the equipment identified in its Application qualifies as
broadband equipment eligible for the tax credit.The Commission also finds that Albion is a
telecommunications carrier and,as presently configured,the installed equipment is an integral
part of the Company’s broadband network and that it is necessary to facilitate the delivery of
broadband internet service to Idaho customers.Therefore,the Commission certifies in this Order
that the equipment identified in Albion’s Application is qualified broadband equipment.The
Commission makes no findings regarding the costs ofthe installed broadband equipment or other
expenses.
(WDPRNO.U479 2
ORDER
IT IS HEREBY ORDERED that Albion Telephone Company’s Application seeking
an Order certifying that it has installed qualifying broadband equipment in Idaho during the 2015
calendar year is approved.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served on the Idaho State Tax Commission.
THIS IS A FINAL ORDER.Any person interested in this order (or in issues finally
decided by this order)may petition for reconsideration within twenty-one (21)days of the
service date of this order with regard to any matter decided in this order.Within seven (7)days
after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.Idaho Code §6 1-626,63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this £?
day of March 2016.
KRISTNE RAPER,COM ISSIONER
ER C ANDERSON,COMMISSIONER
ATTEST:
/2/
/4_.—I /
J inD.JeweJJ
mmission Secretary
O:ALB-T-1 6-01_bk
ORDFRNO.479