20220909Final_Order_No_35526.pdf

ORDER NO. 35526 1

Office of the Secretary
Service Date
September 9, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FILER MUTUAL
TELEPHONE COMPANY’S 2021
BROADBAND EQUIPMENT TAX CREDIT
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CASE NO. FIL-T-22-01

ORDER NO. 35526

On April 5, 2022, Filer Mutual Telephone Company (“Filer Mutual” or “Company”) filed
an application seeking Commission approval for certain telecommunications equipment, installed
during the calendar year 2021, to be eligible for the broadband infrastructure tax credit authorized
by Idaho Code Section 63-3029I. On August 26, 2022, the Company submitted an amended
application (“Application”) to comply with the new requirements of Commission Order No.
35297, which superseded Commission Order No. 28784.
In the Application, Filer Mutual represented that it was a communications carrier that
offered broadband services to its customers including Asymmetric Digital Subscriber Line
(“ADSL”), High-bit-rate digital subscriber line (“HDSL”), Wireless Broadband (“WBB”), and
Fiber To The “x” (“FTTX”). The Company represented that over the past several years it has been
installing equipment and engineering projects with the sole purpose in mind to make broadband
connectivity available to customers. The Company stated that it continued to deploy fiber to the
node and FTTX and it was developing a fiber network that would have the ability to handle
significant amounts of data. The Company represented that in 2021, it added 3 miles of fiber cable
and duct. The Company stated that it is currently using Fujitsu and Adtran broadband carrier
equipment for data and telephone backhaul. The Company disclosed that the broadband network
data transmission rate it offers to its customers is 512 kilobits per second for downloads and 10
gigabits per second for uploads. The Company stated that these rates exceed the minimum statutory
speed requirements under Idaho Code § 63-3029I. Additionally, the Company represented that it
serves 3,784 Idaho customers with broadband service and the availability of those services to the
Company’s total customer base has remained at 99% in the past year. The Company stated that in
2021 it invested $1,008,704.91 in qualifying broadband equipment that the Company claimed is
integral to its broadband network.

ORDER NO. 35526 2

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 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 issue an order confirming that the Company’s equipment is “qualified broadband
equipment,” and 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. FIL-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.
ORDER NO. 35526 3

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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 9th day of
September 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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