20190301final_order_no_34258.pdf

Office of the Secretary
Service Date
March 1,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF COLUMBINE )CASE NO.COL-T-18-02
TELEPHONE COMPANY,INC.'S 2016 AND )
2017 BROADBAND EQUIPMENTTAX )CREDIT APPLICATION )ORDER NO.34258
On December 18,2018,Columbine Telephone Company,Inc.("Company")applied
to the Idaho Public Utilities Commission ("Commission")for an Order certifying that equipment
it installed in 2016 and 2017 is "qualified broadband equipment"under Idaho Code §63-3029I
("Application").With this Order,we confirm the installed equipment is "qualified broadband
equipment"under Idaho Code §63-3029I.
THE APPLICATION
In its Application,Columbine stated that it installed equipment associated with
Asymmetric Digital Subscriber Line (ADSL),Very High Speed Digital Subscriber Line (VDSL),
and Fiber to the X (FTTX)service with transmission rates of one to 50 Mbps upstream and one
to 50 Mbps downstream,which exceeds the required rates of 200,000 bits per second to a
subscriber and 125,000 bits per second from a subscriber.The Company asserts that more than
50%of its Idaho subscribers have access to the broadband network.The Company invested
approximately $1,286,216.57 in 2016 and approximately $827,856.83 in 2017 in qualifying
broadband equipment that it confirms is integral to the broadband network.
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 certifying that the
installed equipment is "qualified broadband equipment"as defined 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
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
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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.'That Order specifies the information the taxpayer must include in the broadband tax
credit application.When the taxpayer files the application,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 resulting Order to
the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed the Company's Application under Idaho Code §63-3029I and
Commission Order No.28784.Based on its review,Staff believes 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 and the listed
equipment 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 confirmingthat the Company's equipment is "qualified broadband
equipment."The Commission makes no findings regarding the costs of the installed broadband
equipment or other expenses.
1 The Commission issued Order No.28784 pursuant to Idaho Code §63-30291(4),which provides the Commission
authority to "issue procedural orders necessary to implement"the income tax credit for investment in broadband
equipment.
ORDER NO.34258 2
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 and
2017 calendar years 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 March 2019.
PAUL KJ LAN ,PRESIDENT
KI isTINE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
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ORDER NO.34258 3