20170905final_order_no_33866.pdf

Office of the Secretary
Service Date
September 5,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CENTURYTEL OF THE GEM STATE,)CASE NO.CGS-T-17-02
INC.DBA CENTURYLINK FOR AN )
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER NO.33866
EQUIPMENT )
On August 16,2017,CenturyTel of the Gem State,Inc.dba CenturyLink (the
“Company”)applied to the Idaho Public Utilities Commission (“Commission”)for an Order
certifying that equipment it installed in 2016 is “qualified broadband equipment”under Idaho
Code §63-3 0291 (Income tax credit for investment in broadband equipment).
THE APPLICATION
In its Application,the Company stated it made a net investment of $189,070’in
qualifying broadband equipment in 2016.The Company stated that it installed equipment
associated with various forms of DSL-based broadband services using a mix of fiber and metallic
cable transport with transmission rates of 256 kilobits per second (“Kbps”)to 20 Mbps.The
Company stated that it installed the broadband equipment in the Bruneau,Grandview and
Richfield exchanges,and that the broadband network can serve 1,414 Living Units2,which is
66%of the Company’s total Living Units in the exchanges.See Application at Exhibit 4.
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 certifying 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.”
Investment of$195,328 minus retirement of ($6,258)equals net investment of$189,070.See Application at I.
2 The Company stated that “[a]Living Unit is a street address where CenturyTel of the Gem State,Inc.might send a
bill and where wireline plant is not far away.A working Living Unit is an address where CenturyTel of the Gem
State,Inc.now sends a bill for some type of service,not necessarily internet access service and not necessarily
telephony service.A qualified LU is an address where DSL-based service could be provisioned in a short interval of
time.”Id.at Exhibit 4.
ORDER NO.33866
Idaho Code §63-30291(3)(b).In addition,qualified broadband equipment must be ‘primarily
used to provide services in Idaho to public subscribers.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 and
Commission Order No.28784.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 §63-30291.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 Comn-iission 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.
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.33866
ORDER
IT IS HEREBY ORDERED that the Company’s Application seeking an Order
confirming that it has installed qualified broadband equipment in Idaho during the 2016 calendar
year 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 62-619.4DONEbyOrderoftheIdahoPublicUtilitiesCommissionatBoise,Idaho this
day of September 2017.
ATTEST:
Diane Hanian
Commission Secretary
O:CGS-T-17-O2sc
ERIC ANDERSON,COMMISSIONER
ORDER NO.33866