HomeMy WebLinkAbout20201124Final_Order_No_34841.pdfORDER NO. 34841 1
Office of the Secretary
Service Date
November 24, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
THE 2018 BROADBAND EQUIPMENT TAX
CREDIT APPLICATION FOR COLUMBINE
TELEPHONE COMPANY, INC.
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CASE NO. COL-T-20-01
ORDER NO. 34841
On March 9, 2020, Columbine Telephone Company, Inc. (“Company”) applied to the
Idaho Public Utilities Commission (“Commission”) for an order confirming that equipment it
installed in 2018 is “qualified broadband equipment” under Idaho Code § 63-3029I (Income tax
credit for investment in broadband equipment).
With this Order, we confirm that the installed equipment is “qualified broadband
equipment” under Idaho Code § 63-3029I.
THE APPLICATION
In the Application the Company states 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
$1,323,177.35 in 2018 in qualifying broadband equipment that it confirms is integral to the
broadband network.
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 in the statute. Idaho Code §
63-3029I(4). The statute defines “qualified broadband equipment” as equipment that: (1) 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)); (2) 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)); and is “primarily used to provide services
ORDER NO. 34841 2
in Idaho to public subscribers[.]” See Idaho Code § 63-3029I(3)(b)(vii).
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 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 § 63-3029I. 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 Staff’s recommendation, we find that
the Company’s equipment identified in Case No. COL-T-20-01 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.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for an order confirming
that equipment it installed in 2018 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.
1 The Commission issued Order No. 28784 pursuant to Idaho Code § 63-3029I(4), which provides the Commission
authority to "issue procedural orders necessary to implement" the income tax credit for investment in broadband
equipment.
ORDER NO. 34841 3
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 24th day
of November 2020.
PAUL KJELLANDER, PRESIDENT
KRISTINE RAPER, COMMISSIONER
ERIC ANDERSON, COMMISSIONER
ATTEST:
Jan Noriyuki
Commission Secretary
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