20160908final_order_no_33585.pdf

Office of the Secretary
Service Date
September 8, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CENTURYTEL OF IDAHO, INC., DBA ) CASE NO. CEN-T-16-02
CENTURYLINK, FOR A 2015 INVESTMENT )
TAX CREDIT FOR INSTALLING )
QUALIFYING BROADBAND EQUIPMENT ) ORDER NO. 33585
-------------)
On August 8, 2016, CenturyTel of Idaho, Inc. dba Century Link ("CenturyLink" or
the "Company") applied to the Idaho Public Utilities Commission ("Commission") for an Order
confirming that equipment it installed in 2015 is "qualified broadband equipment" under Idaho
Code § 63-3029! (Income tax credit for investment in broadband equipment). With this Order,
we confirm that the installed equipment is "qualified broadband equipment" under Idaho Code §
63-3029!.
THE APPLICATION
In its Application, the Company states it invested $20,361 in qualifying broadband
equipment in 2015. The Company states that it installed equipment associated with various
forms of DSL-based broadband services using a mix of fiber optic and metallic cables. The
Company states that transmission rates ranged between 256 kilobits per second (Kbps or 256,000
bps) and 7 megabits per second (Mbps or 7,000,000 bps) to or from a customer. The Company
also states that it installed the broadband equipment in the Salmon and Leadore exchanges and
that their broadband network could reach 4,654, or 92%, of total qualified living units 1 in the
relevant exchange areas. See Application Exhibit 3.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code § 63-3029I 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 by statute. Idaho Code §
63-3029I(4). That statute defines "qualified broadband equipment" as equipment that qualifies
1 Living units (street addresses) represent where the Company might send a bill and where wireline plants are
nearby. This figure represents the percent of working qualified living units where DSL-based service could be
provisioned in a short timeframe.
ORDER NO. 33585 1
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 § 63-3029I(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§ 63-3029I(3)(b)(i).
In furtherance of its statutory responsibility, the Commission has issued Order No.
28784.2 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 § 63-3029!. 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 Staffs recommendation, we find that
the Company's equipment is "qualified broadband equipment" eligible for the tax credit under
Idaho Code § 63-3029!. 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.
2 The Commission issued Order No. 28784 pursuant to Idaho Code§ 63-30291(4), which empowers the Commission
to "issue procedural orders necessary to implement" Idaho Code§ 63-3029(4).
ORDER NO. 33585 2
ORDER
IT IS HEREBY ORDERED that the Company's Application for an Order confirming
that equipment it installed in 2015 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§§ 61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
day of September 2016.
, PRESIDENT
ERIC ANDERSON, COMMISSIONER
ATTEST:
O:CEN-T-l 6-02_sc
ORDER NO. 33585 3