20150821final_order_no_33361.pdf

Office of the Secretary
Service Date
August 21.2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CUSTER TELEPHONE )
BROADBAND SERVICES EEC’S 2014 )CASE NO.CTB-T-15-01
BROADBAND EQUIPMENT TAX CREDIT )
APPLICATION.)ORDER NO.33361
On July 17,2015,Custer Telephone Broadband Services LLC (“CTBS”)applied to
the Idaho Public Utilities Commission (“Commission”)for an Order confirming that equipment
it installed during calendar year 2014 is “qualified broadband equipment”under Idaho Code §
63-30291 (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-
30291.
THE APPLICATION
CTBS states in its Application that it installed equipment associated with broadband
infrastructure services,including Cable Modem HIS,Fixed Wireless HIS services,fiber optic
backbone,and distribution and transmission cables.CTBS claims that approximately 53%of its
customers can be served by broadband network.According to CTBS,it invested $131,076.53 in
broadband equipment in 2014.
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 confirming 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.”Idaho Code §63-30291(3)(b).In addition,to be “qualified broadband equipment”
the equipment must be “primarily used to provide services in Idaho to Idaho public subscribers.”
See Idaho Code §63-30291(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 §63-30291(3)(b)(i).
ORDER NO.33361
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 CTBS’s Application under Idaho Code §63-30291 and Commission
Order No.28784.Based on its review,Staff believes that CTBS 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 CTBS’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 CTBS’s Application and Staffs recommendation,we find that
CTBS’s equipment is “qualified broadband equipment”eligible for the tax credit under Idaho
Code §63-30291.CTBS is a telecommunications carrier.Further,the listed equipment (as
presently configured)is an integral part of CTBS’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 CTBS’s equipment is “qualified broadband
equipment.”The Commission makes no findings regarding the costs of the installed broadband
equipment or other expenses.
ORDER
IT IS HEREBY ORDERED that CTBS’s Application for an Order confirming that
equipment it installed in 2014 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.
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
ORDER NO.33361
after any person has petitioned for reconsideration,any other person may cross-petition for
/4
Jin D.Jewelj
cmmission Secretary
O:CTB-T-1 5-Olbk
MARSHA H.SMITH,COMMISSIONER
reconsideration.See Idaho Code §6 1-626 and 62-6 19.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this I
day of August 2015.
ATTEST:
KRTINE RAPER,COMMISSIONER
ORDERNO.33361 3