20180413Decision Memo.pdf

TO:
FROM:
DATE:
DECISION MEMORANDUM
COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
DANIEL KLEIN
APRIL 12,2018
RE:ALBION TELEPHONE COMPANY DBA ATC'S APPLICATION FOR
THE BROADBAND EQUIPMENT TAX CREDTT FOR 2017;
CASE NO. ALB.T.I8.OI.
BACKGROUND
In 2001, House Bill 377 was enacted authorizing income tax credit for the installation of
qualifiing broadband infrastructure in Idaho. Idaho Code $ 63-30298(3XaXii). In particular,
Section 63-30291allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is defined as "those network facilities capable of
transmitting signals at a rate of at least 200,000 bits per seconds (bps) to a subscriber and at least
125,000 bps from a subscriber;' ldaho Code $ 53-329I(3Xb). If the equipment is installed by a
telecommunications carrier, it must also be "necessary to the provision of broadband services
and an integral part of a broadband network." Idaho Code $ 63-30291(3)(bxi). To be eligible
for the tax credit, the taxpayer must obtain from the Commission an Order confirming that the
installed equipment meets the statutory definition of qualified broadband equipment. Procedural
Order No. 28784 and ldaho Code $ 63-30291(4). Once the Commission as determined the
installed equipment is eligible for the broadband equipment tax credit, an order along with the
original Application is fonrarded to the Idaho Tax Commission.
DECISION MEMORANDUM APRIL 12,20I8I
THE APPLICATION
On February 72,2018, the Commission received an Application from Albion Telephone
Company dba ATC ("Albion" or "Company"), seeking approval of the equipment for the
broadband tax credit installed during calendar year 2017. In the Application, Albion states that it
made certain investments that constitute "qualified broadband equipment". Albion discloses that
its broadband nehvork has data transmission rates of 3Mbps to lGbps which meets the required
rates of 200,000 bits per second to a subscriber and 125,000 bits per second frorn a subscriber.
The Company asserts that99Vo of its ldaho subscribers have access to the broadband network.
Albion invested approximately $1,837,128 in 2017 in qualiffing broadband equipment that it
confirms is integral to the broadband network
STAFF REVTEW AND RECOMMENDATION
Staffhas reviewed and audited the list of proposed brcadband equipment and believes the
identified equipment qualifies for the investment tax credit pursuant to Procedural Order No.
28784 and ldaho Code $ 63-30291(3)(b). Staff, therefore, recommends that the Commission
issue an Order confirming the equipment is qualified broadband equipment and forward the
approving Order along with a copy of the original Application to the ldaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order conirrming the equipment identified in
Case No. ALB-T-I8-01 is qualified broadband equipment as defined in ldaho Code $
63-30291(3Xb) and lomrard it to the Idaho Tax Commission?
Daniel Klein
Udmcmos/ALB.T.l8.0l Atbion Broadbond Ttr Crcdit dcc mcmo
DECISION MEMORANDUM -2-APRIL 12,2OI8