20170609final_order_no_33784.pdf

Office of the Secretary
Service Date
June 9,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
ALBION TELEPHONE COMPANY SEEKING )CASE NO.ALB-T-17-01
CERTIFICATION FOR BROADBAND )
EQUIPMENT INSTALLED IN 2016.)ORDER NO.33784
_____________________________________________________________________________________)
On February 21,2017,Albion Telephone Company applied to the Commission for an
Order confirming that equipment it installed in 2016 is “qualified broadband equipment”under
Idaho Code §63-30291 (Income tax credit for investment in broadband equipment).
THE APPLICATION
Albion stated in its Application that during calendar year 2016,it made investments
in Butte,Cassia,Custer,and Oneida counties.Albion stated that it continued to “deploy fiber to
the premise and ...expanded out fiber backbone by adding redundant rings.”Application at 2.
The Company stated further that it “added 7 miles of copper and duct and 402 miles of fiber
cable and duct.”Id.Albion commented that its various broadband digital subscriber line
services (ADSL and SDSL)and Fiber to the Home is available to 99%of its customers at
network transmission rates of 3 megabits per second (Mbps)to 1 gigabits per second (Gbps),
According to Albion,the 2016 broadband investment was approximately $6 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 “qualified broadband equipment”as defined in the statute.Idaho
Code §63-30291(4).That statute defines “qualified broadband equipment”as equipment that “is
capable of transmitting signals at a rate of at least [200,000 bits per second (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 §63-3029I(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.33784 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
On May 17,2017,Staff provided a review of Albion’s Application.Staff reviewed
the Application under Idaho Code §63-30291 and Commission Order No.28784.Staff stated
that it 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 that 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 of the installed broadband equipment or other
expenses.
ORDER NO.33784 2
ORDER
IT IS HEREBY ORDERED that Albion’s Application seeking an Order certifying
that it installed qualifying broadband equipment in Idaho during the 2016 calendar year is
approved.
IT IS FURTHER ORDERED that the Commission Secretary serve a copy of this
Order and a copy of Albion’s Application on the Idaho State Tax Commission.
TFIIS 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 §S 61-626,63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this 9
day of June 2017.
Att,L,/14jA
KR TINE RAPER,COIMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
::•
Diane M.Hanian
Commission Secretary
O:ALB-T-17-Olbk
PA )ENT
ORDER NO.33784 3