020304Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONERKJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
JEAN JEWELL
RANDY LOBB
DON HOWELL
LYNN ANDERSON
JOE CUSICK
CAROLEE HALL
WAYNE HART
BIRDELLE BROWN
BEVERLY BARKER
RON LAW
TONYA CLARK
GENE FADNESS
WORKING FILE
FROM:DOUG COOLEY
DATE:MARCH 4,2002
RE:FARMERS MUTUAL TELEPHONE COMPANY'S APPLICATION FOR
BROADBAND EQUIPMENTTAX CREDIT.
BACKGROUND
On December 21,2001,the Commission received an Application from Farmers
Mutual TelephoneCompany to receive an investment tax credit for eligible broadband
equipment pursuant to Order No.28784 and Idaho Code §63-3029I(4).To be eligible for the
tax credit,the taxpayer must apply for and obtain from the Commission an order confirmingthat
installed equipment qualifies for the tax credit.
DISCUSSION
Farmers Mutual stated that,during calendar year 2001,it installed a Digital
Subscriber Line Access Multiplexer(DSLAM),line splitters,line filters,an Ethernet switch,a
signal router and various other components that support the provision of high-speed internet
access to over 1000 potential customers in the Fruitland,Idaho area.(See attached Application)
DECISION MEMORANDUM l MARCH 4,2002
Farmers Mutual indicated that it began offering 256 kbps and 512 kbps access speeds to end
users in 2001 via Asynchronous Digital Subscriber Line (ADSL).
STAFF REVIEW
Staff has reviewed the list of proposed broadband equipment submitted by Farmers
Mutual and believes the equipment identified qualifies for the investment tax credit pursuant to
Idaho Code §63-3029I.Therefore,Staff recommends approval of the Company's Application
and further recommends that the Commission forward the approving Order along with a copy of
the original Application to the Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve Farmers Mutual Telephone Company's Application
for the broadband investment tax credit?
Doug Cooley
udmemos/farmers memo
DECISION MEMORANDUM 2 MARCH 4,2002