20190805final_order_no_34394.pdf

Office of the Secretary
Service Date
August 5,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.CTB-T-19-01
OF CUSTER TELEPHONE BROADBAND )SERVICES LLC FOR AN INVESTMENT )TAX CREDIT FOR QUALIFYING )ORDER NO.34394
BROADBAND EQUIPMENT )INSTALLATION )
On May 31,2019,Custer Telephone Broadband Services LLC ("Custer Broadband"
or "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 its Application,the Company stated it invested $622,556.43 in qualifying
broadband equipment in 2018.See Exhibit A attached to the Application.Custer Broadband
states the foregoing investment allowed it to install broadband equipment associated with Cable
Modem High Speed Internet,Fixed Wireless High Speed Internet and Fiber to the Home High
Speed Internet Fiber Optic Fed Cable Television System that provides Cable Modem Service.
Id.The Company also states it installed fiber optic transport electronics,fiber optic backbone
and distribution cable and fixed wireless network equipment.Id.The Company asserts that its
broadband network has data transmission rates of 256,000 to 10,000,000 bits per second from a
subscriber and 256,000 to 10,000,000 bits per second to a subscriber.Id.The Company also
states that 77%of its Idaho subscribers have access to its broadbandservice (1,530 customers out
of 2,000 estimated possible).Id.Finally,the Company certifies that the equipment set forth in
Exhibit A to its Application is necessary for the provision of broadband service and an integral
part of its broadbandnetwork.Id
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 confirmingthat
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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 broadbandnetwork"(Idaho Code §63-3029I(3)(b)(i));and is "primarily used to
provide services 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 Custer Broadband'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 broadbandequipment"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
Applicationand order to the Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed Custer Broadband's Application and Staff s recommendation,we
find that the Company's equipment identified in Case No.CTB-T-19-01 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
i The Commission issued Order No.28784 pursuant to Idaho Code §63-3029I(4),which empowers the
Commission to "issue procedural orders necessary to implement"Idaho Code §63-3029I(4).
ORDER NO.34394 2
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 the Custer Telephone Broadband Services LLC'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.
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 6
day of August 2019.
PAUL KJEL ANDER,PRESIDENT
KRISTINE ER,C IS NER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
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ORDER NO.34394 3