20190118final_order_no_34232.pdf

Office of the Secretary
Service Date
January 18,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CENTURYTEL OF THE GEM STATE,)CASE NO.CGS-T-18-03
INC.DBA CENTURYLINK FOR AN )
INVESTMENT TAX CREDIT FOR )INSTALLING QUALIFYING BROADBAND )ORDER NO.34232
EQUIPMENT )
On August 31,2018,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 2017 is "qualified broadband equipment"under Idaho
Code §63-3029I (Income tax credit for investment in broadband equipment).
THE APPLICATION
In its Application,the Company stated that it installed $12,653 worth of assets and
retired $452 worth of assets in 2017,for a net investment of $12,201 in qualifying broadband
equipment.Application at 1.The Company stated that it installed a mix of fiber and metallic
cable transport associated with DSL-based broadband services.Application at 2.The Company
stated that it installed the equipment in the Bruneau,Grandview,and Richfield exchanges.Id.at
Ex.1.The Company stated that its broadband network has data transmission rates of 256 Kbps
and higher for subscriber downloads and uploads.Id.at Ex.3.The Company stated that 61%of
its Idaho subscribers have access to its broadband network.Id.at Ex.4.The Company stated
that the investment is necessary to the provision of broadband service and is integral to its
network.Id at 2.
THE BROADBAND EQUIPMENTTAX 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 certifyingthat the
installed equipment is "qualified broadband equipment"as defmed in the statute.Idaho Code §
63-3029I(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 §63-3029I(3)(b).In addition,qualified broadband equipment must be "primarily
ORDER NO.34232 1
used to provide services in Idaho to public subscribers[.]"Idaho Code §63-3029I(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 §63-3029I(3)(b)(i).
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.1 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
ultimatelyapproves the application,then the Commission forwards it and the Order to the Idaho
State Tax Commission.
STAFF REVIEW
Staff reviewed and audited the Company's Application under Idaho Code §63-3029I
and Commission Order No.28784.Based on its review and audit,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"eligible for the tax credit
under Idaho Code §63-3029I.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.
I 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 §63-3029I(4).
ORDER NO.34232 2
ORDER
IT IS HEREBY ORDERED that the Company's Application seeking an Order
confirmingthat it has installed qualified broadband equipment in Idaho during the 2017 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.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this '
day of January 2019.
PAUL KJE DER,PRESIDENT
KR TINE RAPER,GOMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
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ORDER NO.34232 3