20150917final_order_no_33379.pdf

Office of the Secretary
Service Date
September 17,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CUSTER TELEPHONE )
COOPERATIVE,INC’S 2014 BROADBAND )CASE NO.CUS-T-15-01
EQUIPMENT TAX CREDIT APPLICATION.)
)ORDER NO.33379
On July 17,2015,Custer Telephone Cooperative,Inc.(“Custer”)applied to the
Commission for an Order confirming that equipment it installed in 2014 is “qualified broadband
equipment”under Idaho Code §63-30291 (Income tax credit for investment in broadband
equipment).This Order confirms that the installed equipment is “qualified broadband
equipment”under Idaho Code §63-30291.
THE APPLICATION
Custer states in the Application that it installed equipment associated with
Asymmetric Digital Subscriber Line (ADSL)and Symmetrical Digital Subscriber Line (SDSL)
services with transmission rates of 256 Kbps to 10 Mbps from a subscriber,and 256 Kbps to 100
Mbps to a subscriber.The Company asserts that approximately 82%of its customers can be
served by the broadband network.Custer states that during 2014,it invested approximately
$314,000 in qualifying broadband equipment.
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
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 §63-30291(3)(b).In addition,to be “qualified broadband equipment”
the equipment must be “primarily used to provide services in Idaho to Idaho public subscribers.”
See 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.33379
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.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’s Application pursuant to Idaho Code §63-30291 and
Commission Order 28784.Based on its review,Staff believes that Custer is a
telecommunications carrier,and that the listed equipment meets the statutory criteria and is
“qualified broadband equipment”eligible for the tax credit.Staff thus recommended that the
Commission:(1)issue an Order confirming that Custer’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 Custer’s Application and Staff’s recommendation,we find that
Custer’s equipment is “qualified broadband equipment”eligible for the tax credit under Idaho
Code §63-30291,and that Custer is a telecommunications carrier.Further,the listed equipment
(as presently configured)is an integral part of Custer’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 Custer’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’s Application for an Order confirming that
equipment it installed in 2014 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
ORDER NO.33379
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 §S 61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2015.
ULKJ L ER,PRESIDENT
/J
MARSHA H.SMITH,COMMISSIONER
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ORDER NO.33379