20170424final_order_no_33748.pdf

Office of the Secretary
Service Date
April 24,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF DIRECT COMMUNICATIONS )CASE NO.DCM-T-17-O1
ROCKLAND,INC.FOR AN INVESTMENT )
TAX CREDIT FOR INSTALLING )ORDER NO.33748
QUALIFYING BROADBAND EQUIPMENT )
On February 28,2017,Direct Communications Rockland,Inc.(the Company”)
applied to the Commission for an Order confirming that equipment it installed in 2016 is
“qualified broadband equipment”under Idaho Code §63-30291 (Income tax credit for
investment in broadband equipment).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 stated that in 2016,it installed equipment associated
with Digital Subscriber Line (DSL)and Ethernet services over a fiber and copper wireline
network.Application at Exhibit A.The Company stated that its network provides transmission
rates of 200 Kbps to a subscriber and 125 Kbps from a subscriber.Id.The Company asserted
that 82%of its customers can be served by the broadband network.The Company invested
approximately $1,950,000 in qualifying broadband equipment.Id.and Application at 1.
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 bps]to a subscriber and at least [125,000 bps]from a subscriber”
(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
ORDER NO.33748 1
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 Direct Communications Rockland’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.
ORDER NO.33748 2
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 JLI
day of April 2017
ATTEST:
Diane M.Hanian
Commission Secretary
O:DCM-T-17-O Ice
KR INE RAPER,C MMISSIONER
PAUL PRESIDENT
ERIC ANDERSON,COMMISSIONER
ORDER NO.33748 3