20160108final_order_no_33449.pdf

Office of the Secretary
Service Date
January 8.2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
CITIZENS TELECOMMUNICATIONS )CASE NO.CTC-T-15-02
COMPANY OF IDAHO DBA FRONTIER )
COMMUNICATIONS OF IDAHO SEEKING A )
BROADBAND EQUIPMENT TAX CREDIT FOR)ORDER NO.33449
2014.)
On December 21,2015.Citizens Telecommunications Company of Idaho dba
Frontier Communications of Idaho (Frontier”)applied to the Commission for an Order
confirming that equipment Frontier installed in 2014 is “qualified broadband equipment”under
Idaho Code §63-30291 (Income tax credit for investment in broadband equipment).
THE APPLICATION
Frontier states in the Application that it installed equipment associated with
Asymmetric Digital Subscriber Line (ADSL)services.The ADSL network is capable of
transmission speeds of up to 640,000 bits per second (bps)sent,and up to 6,000,000 bps
received.Frontier states further that it can serve approximately 87%of its Idaho customers with
broadband services.Frontier advises that it invested $163,478.14 in broadband equipment in
20 14.
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 “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.qualified
broadband equipment must be primarily used to provide services in Idaho to public
subscribers.”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.33449
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784 that specifies the information the 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 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 approving
the application to the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed Frontier’s Application under Idaho Code §63-30291 and Commission
Order No.28784.Based on its review,Staff believes that Frontier is a telecommunications
carrier and that the listed ADSL equipment meets the statutory criteria of “qualified broadband
equipment”eligible for the tax credit.Staff thus recommended the Commission:(1)issue an
Order confirming that Frontier’s equipment is ‘qualified broadband equipment,”and (2)forward
copies of the Application and this Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the broadband tax credit,a taxpayer must first obtain
an Order from the Commission “confirming that the installed equipment is qualified broadband
equipment.”Idaho Code §63-30291(4).‘1n 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).
Based upon our review of Frontier’s Application and the recommendation of Staff,
we find that the Application requesting a qualified broadband equipment Order should be
approved.Frontier has adequately demonstrated that the equipment identified in its Application
qualifies as broadband equipment eligible for the tax credit.The Commission also finds that
Frontier is a telecommunications carrier and,as presently configured,the installed equipment is
an integral part of the Company’s broadband network and that it is necessary to facilitate the
delivery of broadband internet service to Idaho customers.Therefore,the Commission certifies
in this Order that the equipment identified in Frontier’s Application is qualified broadband
equipment.The Commission makes no findings regarding the costs of the installed broadband
equipment or other expenses.
ORDER NO.33449 2
ORDER
IT IS HEREBY ORDERED that Frontier’s Application seeking an Order certifying
that it has installed qualifying broadband equipment in Idaho during the 2014 calendar year is
approved.
IT IS FURTHER ORDERED that the Commission Secretary serve this Order and
Frontier’s Application 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.Idaho Code §6 1-626,63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of January 2016.
ATTEST:
J,knD.Jewell(’j
COmmission Sécretary
O:CTC-T-15-02_bk
7iQ)AiA
KRfSTINE RAPER,COMMISSYONER
ERIC ANDERSON,COMMISSIONER
PAUL PRESIDENT
ORDER NO.33449 3