20180727final_order_no_34119.pdf

Office of the Secretary
Service Date
July 27,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CUSTER TELEPHONE BROADBAND )CASE NO.CTB-T-18-01
SERVICES LLC FOR AN INVESTMENT )TAX CREDIT FOR QUALIFYING )ORDER NO.34119
BROADBAND EQUIPMENT )
INSTALLATION )
On June 20,2018,Custer Telephone Broadband Services LLC ("CTBS"or
"Company")applied to the Idaho Public Utilities Commission ("Commission")for an Order
confirming that equipment it installed in 2017 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 its Application,the Company stated that it invested $1,069,488.91 in qualifying
broadband equipment in 2017.Application at 4.The Company said it installed equipment
associated with Cable Modem High Speed Internet,Fixed Wireless High Speed Internet,and
Cable Television (CATV).See Id.at 1.CTBS discloses that its broadband network has data
transmission rates of 256 Kbps to 10 Mbps from a subscriber and 256 Kbps to 100 Mbps to a
subscriber.Id.The Company further stated that more than 72%of its customers have subscribed
to its broadband network within its designated service areas.See Id at 1.
THE BROADBAND EQUIPMENTTAX CREDIT
Idaho Code §63-3029I allows a taxpayer to receive an income tax credit for
installing qualified broadband equipment during a calendar year.Before the taxpayer is eligible
for the tax credit,the taxpayer must first obtain a Commission Order confirmingthat 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 Kbps]to a subscriber and at least [125 Kbps]from a subscriber"(Idaho
Code §63-3029I(3)(b));and (2)is "primarily used to provide services in Idaho to public
subscribers."See Idaho Code §63-3029I(3)(b)(vii).Moreover,in the case of a
ORDER NO.34119 1
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 issued Order No.28784
to specify what information a taxpayer must include in a broadband tax credit application.When
the taxpayer files the application,the Commission Staff reviews it to determine whether the
listed equipment meets the statutory defmition 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 recommends 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.
ORDER
IT IS HEREBY ORDERED that Custer Telephone Broadband Services LLC's
Application for an Order,confirmingthat equipment identified in Case No.CTB-18-01 installed
in 2017 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.
ORDER NO.34119 2
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 July2018.
PAUL KJELLA DER,PRESIDENT '
KRISTINE RAPER,COMMISSIONER
ERIC ANDERSON,COMilSSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
I \Legal\Telephone\CTB-T-18-01\CTBTl801_ejorder
NO.34119 3