20201113Decision Memo.pdf

DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: DANIEL KLEIN
DATE: NOVEMBER 12,2020
RE:THE 2OI8 BROADBAND EQUIPMENT TAX CREDIT
APPLICATION FOR COLUMBINE TELEPHONE COMPANY, INC.;
CASE NO. COL.T.2O.OI.
BACKGROUNI)
In 2001. House Bill377 was enacted authorizing income tax credit fbr the installation of
qualifying broadband infiastructure in ldaho. It{aho Cbde $ 63-30298(3XaXii). In particular.
Section 63-30291allou's a taxpayer to receive an investment tax credit fbr eligible broadband
equipment installed during a calendar year.
Qualified broadband equipntent is defined as "those network tacilities capable of
transmitting signals at a rate of at least 200.000 bits per seconds (bps) lo a subscriber and at least
125.000 bps tiom a subscriber;' Iclefio Code $ 63-3291(3Xb). If the equipment is installed by a
telecommunications carrier. it must also be "necessary to the provision of broadband services
and an integral pan of a broadband network." ldaho C'ocle $ 63-30291(3XbXi). To be eligible
fbr the tax credit. the taxpayer must obtain from the Clommission an Order contirming that the
installed equipment meets the statutory det'inition of qualitied broadband equipment. Procedural
Order No. 28784 and ldaho ( brle $ 63-30291(4). Once the Conrmission as determined the
installed equipment is eligible lbr the broadband equipment tax credit, an order along with the
original Application is fbrrvarded to the Idaho Tax Cornmission.
DECISION MEMORANDUM NOVEMBER I2,2O2O
THE APPLICATION
On March 9.2020. the Conrnrission received an Application from Columbinc Telephone
Companl'. INC ("Columbine" or "Companl"'). seeking approval of the equipment lbr thc
broadband tax credit installed during calcndar y'ear 2018. In the Application. Columbine statcs
that it installed equipment associated with Asymmetric Digital Subscriber Line (ADSL). Very
I-ligh Speed Digital Subscriber Line (VDSL). and Fiber to thc X (F'l-]'X) service with
transmission rates of one to 50 Mbps upstream and one to 50 Mbps dou'nstream. which exceeds
thc rcquired rates ol'200.000 bits pcr sccond to a subscribe.r and I 25.000 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 qualit_ving
broadband equipment that it contlrnrs is integral to the broadband netrvork.
STAFF REVIEW AND RECOMMENDATION
Staflhas reviewed and audited the list ol'proposed broadband equiprment and believes the
identified equipntent qualifies fbr the investmenl tax credit pursuant to Procedural Order No.
28784 and lduho Cbrlc 5\ 63-30291(3Xb). Stall. therefbre. recomrnencls that rhe Commission
issue an Order conlirrning the equipment is qualitied broadband equiprnent and tbrward the
approving Order along rvith a copy of the original Application to the ldaho'l'ax Commission.
COMMISSION DECISION
Does the Commission u'ish to issue an Order confirming the equiprnent identitied in Case
No. COL-T-20-01 is qualificd broadband equipnrent as defined in lclttho C.'orle g 63-30291(3Xb)
and fbrrvard it to the ldaho Tax Commission?
Danicl Klein
[.idmenros,'COl--'I-20-0 I 201 8 ('olumbinc l'elcphonc Companr . lnc llr.adband 't'ar ('rcdir
DECISION MEMORANDUM NOVEMBER I2.2O2O
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