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HomeMy WebLinkAbout20090526_2583.pdfDECISION MEMORANDUM TO:CO MMISSI 0 NER KEMPTON CO MMISSI 0 NER SMITH CO MMISSI 0 NER RED FORD COMMISSION SECRETARY LEGAL WORKING FILE FROM:GRACE SEAMAN DATE:MAY 22, 2009 RE:ALBION TELEPHONE COMPANY'S 2008 BROADBAND EQUIPMENT TAX CREDIT APPLICATION; CASE NO. ALB-09-01. BACKGROUND In 2001 , House Bill 377 was enacted authorizing income tax credit for the installation of qualifying broadband infrastructure in Idaho. Idaho Code ~ 63-3029B(3)(a)(ii). In particular Section 63-30291 allows a taxpayer to receive an investment tax credit for eligible broadband equipment installed during a calendar year. Qualified broadband equipment" is defined as those network facilities capable of transmitting signals at a rate of at least 200 000 bits per seconds (bps) to a subscriber and at least 125 000 bps from a subscriber. Idaho Code ~ 63-3029I(3)(b). To be eligible for the broadband equipment tax credit, the taxpayer must obtain from the Commission an Order confirming that installed equipment qualifies for capital investment credit. Procedural Order No. 28784 and Idaho Code ~ 63-30291(4). THE APPLICATION On May 4 2009, the Commission received an Application from Albion Telephone Company dba A TC Communications (A TC) seeking approval of equipment for the broadband tax credit. ATC's Application lists the broadband investments made during calendar year 2008 in the Idaho counties of Butte, Cassia, Custer, and Oneida. A TC indicated that during 2008 , the Company added 38 miles of copper and 42 miles of fiber cable; installed Fujitsu fiber terminals for backhaul and several brands of Digital Loop Carriers. A TC stated it provides ADSL, IDSL DECISION MEMORANDUM - 1 -MAY 22, 2009 HDSL, and SDSL services to its customers at network transmission rates of256 Kbps to 6 Mbps. A TC reported that it added the capacity to provide broadband service to 173 new customers in 2008, bringing the total number to 1 665 customers. The A TC 2008 broadband investment is approximately $2 200 000. ST AFF REVIEW AND RECOMMENDATION Staff has reviewed the list of proposed broadband equipment submitted by A TC and believes that it qualifies for the investment tax credit pursuant to Procedural Order No. 28784 and Idaho Code ~ 63-3029I(3)(b). Further, Staff believes that the expenditures indentified by A TC, a telecommunications provider, were for equipment that is "necessary for the provision of broadband services and an integral part of a broadband network." Staff, therefore, recommends acceptance of the Application and further recommends that the Commission forward the approving Order along with a copy of the original Application to the Idaho Tax Commission. COMMISSION DECISION Does the Commission wish to accept ATC's Application for the broadband equipment tax credit? ffiL~ ~~~ Grace Seaman GS:udmemos/ATC 2008 BTC dec memo DECISION MEMORANDUM - 2 -MAY 22, 2009