20160607final_order_no_33534.pdf

Office of the Secretary
Service Date
June 7,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF DIRECT )
COMMUNICATIONS ROCKLAND,INC.’S )CASE NOS.DCM-T-16-Ol
APPLICATION FOR A BROADBAND TAX )
CREDIT CERTIFICATION )
)ORDER NO.33534
________________________________________________________________________________________________
)
On April 11,2016,Direct Communications Rockland,Inc.(the “Company”)applied
to the Commission for an Order confirming that equipment it installed in 2014 and 2015 is
“qualified broadband equipment”under Idaho Code §63-30291 (Income tax credit for
investment in broadband equipment).On May 19,2016,the Company filed additional
information further describing the installed equipment and the associated costs.Having
reviewed the record in this case,we issue this Order confirming that the installed equipment is
“qualified broadband equipment”under Idaho Code §63-30291.
THE APPLICATION
In its Application,the Company states that in 2014 and 2015,it installed equipment
associated with Digital Subscriber Line (DSL)and Ethernet services over a fiber and copper
wireline network.The Company states it invested $674,286.90 for equipment in Bear Lake and
Power counties;in 2012,it invested $1,257,120.20 for equipment in 2014,and $1,225,316.30 for
equipment in 2015.The Company states its network can transmit signals of at least 6 megabits
per second (6,000,000 bits per second (“bps”))to a subscriber and 1 megabit per second
(1,000,000 bps)from a subscriber.The Company states its broadband network can serve about
80%of its Idaho customers.See Application.
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 obtain a Commission Order confirming that the installed
equipment is “qualified broadband equipment”as defined in the statute.Idaho Code §63-
30291(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 signals
at a rate of at least [200,000 bpsj to a subscriber and at least [125,000 bpsj from a subscriber”
ORDER NO.33534 1
(Idaho Code §63-30291(3)(b));and (2)is “primarily used to provide services in Idaho to Idaho
public subscribers.”See Idaho Code §63-30291(3)(b)(vii).Moreover,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).
In furtherance of its statutory responsibility,the Commission issued Order No.28784
to specify what information a 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 to the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed the Company’s Application under Idaho Code §63-30291.Based on
its review,Staff believes 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 confirming that 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 Staffs recommendation,we find
the Company’s equipment is “qualified broadband equipment”eligible for the tax credit under
Idaho Code §63-30291.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 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 2014 and 2015 is “qualified broadband equipment”is granted.
ORDER NO.33534 2
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 June 2016.
PAtItKJELL ER,PRESIDENT
Atj)jLi&
KR INE RAPER,COMv1ISSTONER
ATTEST:
Jn D.Jewell
ómmission Secretary
O:DCM-T-16-0 lkk
ERIC ANDERSON,
ORDER NO.33534 3