20230710Final_Order_No_35848.pdf

ORDER NO. 35848 1

Office of the Secretary
Service Date
July 10, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF CUSTER TELEPHONE
COOPERATIVE, INC.’S APPLICATION FOR
THE 2022 BROADBAND EQUIPMENT TAX
CREDIT
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CASE NO. CUS-T-23-02

ORDER NO. 35848

On May 23, 2023, Custer Telephone Cooperative, Inc. (“Company”), filed an application
(“Application) with the Idaho Public Utilities Commission (“Commission”) requesting a
Commission order determining that the equipment identified in the Application constituted
qualified broadband equipment eligible for the income tax credit authorized in Idaho Code § 63-
3029I. On May 26, 2023, the Company submitted supplemental information to its Application in
compliance with Commission Order No. 35297.
In its Application, the Company represented that the broadband services it offers to its
customers are associated with Asymmetric Digital Subscriber Line (“ADSL”), Very high-speed
Digital Subscriber Line (“VDSL”), Fiber to the Home (“FTTH”), and wireless services
technologies. The Company described its network as fiber optic fed DLC’s with 12K non-loaded
copper distribution cable, fiber optic backbone and transport electronics, fiber to the home
distribution and electronics, and 3G & 4G wireless data.
The Company represented that the transmission rate of its broadband network to its lowest
subscribed rate is 512 Kilobytes (“KB”) per second to the subscriber, and 128 KB from the
subscriber. The Company stated that its lowest advertised rate is 25 Megabytes (“MB”) per second
to a subscriber, and 3 MB per second from a subscriber. The Company stated that its highest
advertised rate is 1 Gigabyte (“GB”) per second to a subscriber, and 200 MB per second from a
subscriber. The Company stated that these transmission rates are above the minimum statutory
speed requirements pursuant to Idaho Code § 63-3029I.
The Company asserted that it serves 1,620 customers with broadband services out of 1,800
estimated possible customers in Idaho. The Company represented that in 2022 it invested
approximately $1,984,968.14 in qualifying broadband equipment that the Company stated is
integral to its broadband network. The Company concluded that this investment in broadband
equipment qualifies for a 3% income tax credit of $59,549.04.

ORDER NO. 35848 2

THE BROADBAND EQUIPMENT TAX CREDIT
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). Section 63-3029I
allows a taxpayer to receive an income 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 § 63-329I(3)(b). If the equipment is installed by a
telecommunications carrier, it must also be “necessary to the provision of broadband services and
an integral part of a broadband network.” Idaho Code § 63-3029I(3)(b)(i).
To be eligible for the income tax credit the taxpayer must obtain an order from the
Commission confirming that the installed equipment meets the statutory definition of qualified
broadband equipment. Commission Order No. 35297; Idaho Code § 63-3029I(4). Once the
Commission has determined the installed equipment is eligible for the income tax credit, the
Commission will issue an order granting the application, and forward the order along with the
original application to the Idaho Tax Commission.
STAFF REVIEW
Staff reviewed the Company’s Application under Idaho Code § 63-3029I and Order No.
35297. Based on its review, Staff believed the listed equipment met the statutory criteria and was
qualified broadband equipment that was eligible for the tax credit. Staff recommended the
Commission: (1) issue an order confirming that the Company’s equipment is qualified broadband
equipment, and (2) forward copies of the Application and the order to the Idaho State Tax
Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Application and Staff’s recommendation, the
Commission finds that the Company’s equipment identified in Case No. CUS-T-23-02 is qualified
broadband equipment eligible for the income tax credit under Idaho Code § 63-3029I. The
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 is granted.
ORDER NO. 35848 3

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 may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding 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 10th day of
July 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER
ATTEST:

Jan Noriyuki
Commission Secretary
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