20180419final_order_no_34034.pdf

Office of the Secretary
Service Date
April 19,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CITIZENS )CASE NO.CTC-T-18-01
TELECOMMUNICATIONS COMPANY OF )IDAHO DIBIA FRONTIER )COMMUNICATIONS OF IDAHO FOR A )ORDER NO.34034
2016 INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )EQUIPMENT )
On January 18,2018,Citizens Telecommunications Company of Idaho dba Frontier
Communications of Idaho (the "Company")applied to the Idaho Public Utilities Commission
("Commission")for an Order confirming that equipment it installed in 2016 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 in 2016 its net investment in qualifying
broadband equipment was $545,372.45.See Application at 5.The Company states that it
installed equipment associated with Asymmetrical Digital Subscriber Line ("ADSL")in the
followingIdaho communities:Cascade,Donnelly,Homedale,Horseshoe Bend,McCall,New
Meadows,Riggins,Sweet,and Wilder.Application at 1.The Company states that transmission
rates ranged between 640 kilobits per second (Kbps)and 6 megabits per second (Mbps)to or
from a subscriber.Id.The Company also states that its broadband network is now available to
approximately 14,920 Frontier Idaho customers,or over 87%of its total Idaho customer base.
Id.Finally,the Company certifies that the equipment it lists in its Application "is an integral part
of a network that permits broadbandsignaling to occur."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 confirming that
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
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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));and (2)is "primarily used to provide services in
Idaho to Idaho public subscribers "See Idaho Code §63-3029I(3)(b)(vii).Further,in "the case
of a telecommunications carrier,such qualifyingequipment 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 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 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 recommended the Commission:(1)issue an Order confirmingthat 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 identified in Case No.CTC-T-18-01 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
confirming that the Company's equipment is "qualified broadband equipment."The
*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 §63-3029(4).
ORDER NO.34034 2
Commission makes no findings regarding the costs of the installed broadband equipment or other
expenses.
ORDER
IT IS HEREBY ORDERED that the Company's Application for an Order confirming
that equipment it installed in 2016 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
day of April 2018.
PAUL KJELLANÖ ,PRESIDENT
KRISTINE RAPER,MMI IONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
CTCT1801_BTC ep
ORDER NO.34034 3