20180405final_order_no_34025.pdf

Office of the Secretary
Service Date
April 5,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.DCM-T-18-01
OF DIRECT COMMUNICATIONS )ROCKLAND,INC.,FOR THE BROADBAND )EQUIPMENTTAX CREDIT FOR 2017 )ORDER NO.34025
On March 19,2018,Direct Communications Rockland,Inc.,("Direct"or
"Company")applied to the Idaho Public Utilities Commission for an Order confirming that
equipment it installed for calendar year 2017 is "qualified broadband equipment"under Idaho
Code §63-3029I (Income tax credit for investment in broadband equipment).With this Order,
we confirm that the installed equipment meets that statutory defmition.
THE APPLICATION
In its Application,the Company indicated that in 2017 it invested $2,842,973.24 in
qualifying broadband equipment.See Application at 6.Direct stated that it made certain
investments that constitute "qualified broadbandequipment."Direct disclosed that its broadband
network has data transmission rates of 200,000 bits per second to a subscriber and 125,000 bits
per second from a subscriber which meets the rates required by statute.The Company asserted
that 97%of its Idaho subscribers have access to the broadband network.
THE BROADBAND EQUIPMENTTAX CREDIT
Idaho Code §63-3029I 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 §63-3029I(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 bits per second (bps)to a subscriber and at least 125,000 bits
per second (bps)from a subscriber.Idaho Code §63-3029I(3)(b).In addition,to be "qualified
broadband equipment"the equipment must be "primarily used to provide services in Idaho to
Idaho public subscribers."Idaho Code §63-3029I(3)(b)(vii).Further,in "the case of a
telecommunications carrier,such qualifyingequipment shall be necessary to the provision of
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broadband service and an integral part of a broadband network."Idaho Code §63-
3029I(3)(b)(i).
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
ultimatelyapproves the application,then the Commission forwards it and the Order to the Idaho
State Tax Commission.
STAFF REVIEW
Staff reviewed and audited the Company's Application under Idaho Code §63-3029I
and Commission Order No.28784.Based on its review,Staff believes that 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 certifying 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 Staff's recommendation,we find
that the Company's equipment identified in Case No.DCM-T-18-01 is "qualified broadband
equipment"eligible for the tax credit under Idaho Code §63-3029I.The Company is a
telecommunications carrier.Further,the listed equipment (as presently configured)is an integral
part of the Company's broadbandnetwork and is necessary to the provision of broadband service
to Idaho customers.Accordingly,it is appropriate for the Commission to issue an Order
certifying 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 identified in Case No.DCM-T-18-01 installed in 2017 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.34025 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
day of April 2018.
PAUL KJ DE RESIDENT
ISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Haman
Commission Secretary
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