20220502Final_Order_No_35388.pdf

ORDER NO. 35388 1

Office of the Secretary
Service Date
May 2, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF DIRECT
COMMUNICATIONS ROCKLAND, INC.’S
APPLICATION FOR BROADBAND TAX
CREDIT CERTIFICATION.
)
)
)
)
)
CASE NO. DCM-T-22-01

ORDER NO. 35388

On March 31, 2022, Direct Communications Rockland, Inc. (“Company”) filed an
application seeking approval of a broadband tax credit for the equipment it installed during
calendar year 2021. However, the Company’s initial Application was not in conformity with the
requirements of Commission Order No. 35297. On April 22, 2022, the Company submitted an
Amended Application in compliance with Commission Order No. 35297.
In the Amended Application, the Company disclosed that its broadband network has
data transmission rates at a minimum rate of 25,000,000 bits per second (“bps”) to a subscriber
and 3,000,000 bps from a subscriber. The Company represented that this rate is above the
minimum statutory speed requirements pursuant to Idaho Code § 63-3029I. The Company asserted
that 5,293 Idaho subscribers have access to the broadband network. The Company represented that
it invested approximately $4,821,168 in 2021 for qualifying broadband equipment, and that the
equipment was integral to the broadband network.
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 investment 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 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 and Idaho Code § 63-3029I(4). Once the
ORDER NO. 35388 2

Commission has determined the installed equipment is eligible for the broadband equipment tax
credit, an order along with the original Application is forwarded 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 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-22-01 is “qualified broadband
equipment” eligible for the tax credit under Idaho Code § 63-3029I. 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 2021 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.
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.
///

ORDER NO. 35388 3

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 2nd day
of May 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\TELECOM\DCM-T-22-01\DCMT2201_final_cb.docx