20140903final_order_no_33114.pdf

Office of the Secretary
Service Date
September 3,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CENTURYTEL OF )
IDAHO,INC.DBA CENTURYLINK’S 2012 AND)CASE NO.CEN-T-14-04
2013 BROADBAND EQUIPMENT TAX CREDIT)
APPLICATION.)ORDER NO.33114
On August 26.2014,Centurylel of Idaho.Inc.dba CenturyLink (the ‘Company”)
applied to the Idaho Public Utilities Commission (Commission”)for an Order confirming that
equipment it installed in 2012 and 2013 is “qualified broadband equipment”under Idaho Code §
63-30291 (Income tax credit for investment in broadband equipment).With this Order,we
confirm that the installed equipment is “qualified broadband equipment”under Idaho Code §63-
30291.
THE APPLICATION
In its Application,the Company says that:(1)in 2012 its net investment in qualifying
broadband equipment was $512,991 (consisting of $516,821 in investments and $3,830 in
retirements);and (2)in 2013,its net investment in qualifying broadband equipment was
$1 08,449 (consisting of $130,479 in investments and $22,030 in retirements).The Company
says it installed equipment associated with various forms of DSL-based broadband services
(using a mix of fiber and metallic cable transport)with transmission rates ranging from 256
kilohits per second (i.e.,256,000 bits per second (“bps”))to 40 megabits per second (i.e.,
40,000,000 bps).The Company says it deployed services in the Leadore,North Fork,and
Salmon exchanges,and that in 2012 its broadband network could serve 94%of its Idaho
customers and in 2013 its broadband network could serve 90%of its Idaho customers.See
Application.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §60-30291 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
Lode §63-3029I4),That statute defines “qualified broadband equipment”as equipment that
qualifies for the Idaho Code §63-3029B capital investment credit that ‘is capable of transmitting
ORDERNO.33114 1
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,to be “qualified broadband equipment”
the equipment must be “primarily used to provide services in Idaho to Idaho public subscribers.”
See 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).
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.That Order specifies the information the taxpayer must include in the 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 to the Idaho
State Tax Commission.
STAFF REVIEW
Staff reviewed the Company’s Application under Idaho Code §63-3 0291.Based on
its review,Staff believes that the Company is a telecommunications carrier and that the listed
equipment meets the statutory criteria and is “qualified broadband equipment”that is eligible for
the tax credit.Staff thus recommended the Commission:(1)issue an Order confirming that the
Company’s equipment is “qualified broadband equipment,”and (2)forward copies of the
Application and Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Application and Staff’s recommendation,we find
that the Company’s equipment is “qualified broadband equipment”subject to the tax credit under
Idaho Code §63-3 0291.The Company is a telecommunications carrier.Further,the listed
equipment (as presently configured)is an integral part of the Company’s broadband network and
is necessary to the provision of broadband service to Idaho customers.Accordingly,it is
appropriate for the Commission to issue an Order confirming that the Company’s equipment is
“qualified broadband equipment.”The Commission makes no findings regarding the costs of the
installed broadband equipment or other expenses.
ORDERNO.33114 2
ORDER
IT IS HEREBY ORDERED that the Company’s Application for an Order confirming
that equipment it installed in 2012 and 2013 is “qualified broadband equipment,”is granted.
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.See Idaho Code §6 1-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2014.
Out of the Office on this Date
MARSHA H.SMITH,COMMISSIONER
ATTEST:
;,I
Jean D Jewell
Cdmmission Secretary
O:CEN-T-I 4-O4kk
IDENT
MACK A.)FORD,COMMISSIONER
ORDERNO.33114