20151006final_order_no_33393.pdf

Office of the Secretary
Service Date
October 6,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CENTURYTEL OF )
IDAHO,INC.DBA CENTURYLINK’S )CASE NOS.CEN-T-15-05
APPLICATION FOR AN INVESTMENT TAX )
CREDIT FOR INSTALLING QUALIFYING )
BROADBAND EQUIPMENT )ORDER NO.33393
________________________________________________________________________________
)
On September 9,2015,CenturyTel of Idaho,Inc.dba CenturyLink (the “Company”)
applied to the Commission for an Order confirming that equipment it installed in 2014 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 states that it invested $73,953 in qualifying
broadband equipment in 2014.The Company reports that it installed equipment associated with
Digital Subscriber Line (DSL)broadband services (using a mix of fiber and metallic cable
transport)with transmission rates of 256 kilobits per second to 7 megabits per second (i.e.,
256,000 bits per second (“bps”)to 7,000,000 bps).The Company also reports that it installed the
broadband equipment in the Leadore and Salmon exchanges,and that the broadband network is
capable of serving 95%of the living units in the Company’s Idaho service area.See Application.
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
qualifies for the Idaho Code §63-3029B capital investment credit 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).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.33393 1
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 §63-30291.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.
COMvllSSION FINDINGS
Having reviewed the Company’s Application and Staffs recommendation,we find
that the Company’s equipment is “qualified broadband equipment”eligible for 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.
ORDER
IT IS HEREBY ORDERED that CenturyTel of Idaho,Inc.dba CenturyLinks
Application for an Order confirming that equipment it installed in 2014 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
ORDERNO.33393 2
service date of this order with regard to any matter decided in this order.Within seven (7)days
after an person has petitioned for reconsideration,any other person may cross-petition cor
reconsideration .See Idaho Code 61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of October 2015.
/
PAUL KJELLAND PRESIDENT
MARSHA H.SMITH,COMMISSIONER
KRISE PER,COMMISSIONER
ATTEST:
J n D.Jewel
mmission Secretary
O:CEN-T-15-O5kk
ORDERNO.33393 3