20080128_2152.pdf

DECISION MEMORANDUM
TO:COMMISSIONER REDFORD
COMMISSIONER SMITH
COMMISSIONER KEMPTON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:JANUARY 23, 2008
RE:SYRINGA NETWORKS, LLC 2007 BROADBAND TAX CREDIT;
CASE NO. SZ9-08-01.
BACKGROUND
On January 18 , 2008 , the Commission received an Application from Syringa Networks
LLC (Syringa), seeking approval of equipment for the broadband tax credit pursuant to
Commission Order No. 29784 and Idaho Code 9 63-30291(4). To be eligible for the tax credit,
the taxpayer must obtain a Commission Order confirming that installed equipment qualifies for
the tax credit.
STAFF ANALYSIS
Syringa s Application indicated the 2007 expenditures were for the completion of work
started in previous years, including the installation of its fiber optic cable network, digital
switching equipment, SONET multiplexers, testing equipment, modular routers and supporting
power supply and software. Syringa offers high-speed transport, frame-relay, and other related
services to customers at transmission rates of 1.544 Mbps and higher. The Company states that
all of its customers are Idaho subscribers and that it invested approximately $770 000 in
qualifying broadband equipment during calendar year 2007.
ST AFF REVIEW AND RECOMMENDATION
Staff has reviewed the list of proposed broadband equipment costs submitted by Syringa
and believes that the equipment identified qualifies for the investment tax credit pursuant to
DECISION MEMORANDUM - 1 -JANUARY 23 , 2008
Idaho Code 963-30291. Staff, therefore, recommends approval of the Application and further
recommends that the Commission forward the approving Order along with a copy of the original
Application to the Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve Syringa s Application for the broadband investment tax
credit?
;/fu
race Seaman
GS:udmemos/syringa2008
DECISION MEMORANDUM - 2 -JANUARY 23 2008