20160616final_order_no_33541.pdf

Office of the Secretary
Service Date
June 16,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
CUSTER TELEPHONE COOPERATIVE,INC )CASE NO.CUS-T-16-01
SEEKING A BROADBAND EQUIPMENT TAX )
CREDIT FOR 2015 )ORDER NO.33541
_____________________________________________________________________________________)
On June 1,2016,Custer Telephone Cooperative,Inc.applied to the Commission for
an Order confirming that equipment it installed in 2015 is “qualified broadband equipment”
under Idaho Code §63-3 0291 (Income tax credit for investment in broadband equipment).
THE APPLICATION
Custer stated in its Application that during calendar year 2015,it made investments in
Custer County for the Challis exchange.Along with its Application,the Company included an
itemized inventory of installed equipment related to Fiber to the Home High Speed Internet
service,and Symmetrical Digital Subscriber Line service.Custer stated that its broadband
digital subscriber line services are available to 88%of its customers at network transmission
rates of 256,000 bps to 10 million bps from a subscriber,and 256,000 bps to 100 million bps to a
subscriber.According to Custer,the 2015 broadband investment is $2,154,069.61.
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.33541
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
approves the application,the Commission will direct that the application,and the Order
approving it be forwarded to the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed Custer’s Application under Idaho Code §63-30291 and Commission
Order No.28784.Based on its review,Staff believes that Custer is a telecommunications carrier
and that the listed 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 Custer’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).“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).
Based upon our review of Custer’s Application and the recommendation of Staff,we
find that the Application requesting a qualified broadband equipment Order should be approved.
Custer has adequately demonstrated that the equipment identified in its Application qualifies as
broadband equipment eligible for the tax credit.The Commission also finds that Custer 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 Custer’s Application is qualified broadband equipment.The
Commission makes no findings regarding the costs of the installed broadband equipment or other
expenses.
ORDER NO.33541 2
ORDER
IT IS HEREBY ORDERED that Custer’s Application seeking an Order certifying
that it has installed qualifying broadband equipment in Idaho during the 2015 calendar year is
approved.
IT IS FURTHER ORDERED that the Commission Secretary serve this Order and
Custer’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 §61-626,63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of June 2016.
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KR TINE RAPER,COMMISTONER
ATTEST:
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D.Jewe
Commission Secretary
O:CUS-T-1 6-01_bk
ERIC ANDERSON,COMMISSIONER
ORDERNO.33541 3