20190326final_order_no_34286.pdf

Office of the Secretary
Service Date
March 26,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF DIRECT )CASE NO.DCM-T-19-01
COMMUNICATIONS ROCKLAND,INC.)FOR A 2018 INVESTMENT TAX CREDIT )
FOR INSTALLING QUALIFYING )ORDER NO.34286
BROADBAND EQUIPMENT )
On February 26,2019,Direct Communications Rockland,Inc.("Company")applied
to the Idaho Public Utilities Commission ("Commission")for an order confirmingthat equipment
it installed in 2018 is "qualifiedbroadbandequipment"under Idaho Code §63-3029I (Income tax
credit for investment in broadband equipment).With this order,we confirm that the installed
equipment is "qualified broadbandequipment"under Idaho Code §63-3029I.
THE APPLICATION
In its Application,the Company states that in 2018 its net investment in qualifying
broadband equipment was $1,672,861.57.See Application at 7.The Company states that it made
certain investments that constitute "qualified broadband equipment".Id at 1.The Company states
that its transmission rates are 200,000 bits per second to a subscriber and 125,000 bits per second
from a subscriber,and that this speed meets the requirements of Idaho Code §63-3029I.Id at 5.
The Company also states that 95%of its Idaho subscribers have access to the broadband network.
Id.Finally,the Company confirms through its exhibits that the qualifyingbroadbandequipment is
an integral part of the broadbandnetwork.Id at 2 through 10.
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).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 §63-3029I(3)(b));and (2)is "primarily used to provide services in Idaho to Idaho public
subscribers."See Idaho Code §63-3029I(3)(b)(vii).Further,in "the case of a telecommunications
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carrier,such qualifying equipment shall be necessary to the provision of broadband service and an
integral part of a broadbandnetwork."Idaho Code §63-3029I(3)(b)(i).
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.1 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 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 §63-3029I.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 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 Applicationand Staff's recommendation,we find that
the Company's equipment identified in Case No.DCM-T-19-01 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 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 2018 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.
I The Commission issued Order No.28784 pursuant to IdahoCode §63-3029I(4),which empowers the Commission
to "issue procedural orders necessary to implement"the statute.
ORDER NO.34286 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 if
day of March,2019.
PAUL JELLAND R,PRESIDENT
KRISTINE RAPER,C MMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
L\Legal\TELEPHONE\DCM-T-19-01\DCMTl901_MHOrder docx
ORDER NO.34286 3