20210426Final_Order_No_35016.pdf

ORDER NO. 35016 1

Office of the Secretary
Service Date
April 26, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FARMERS MUTUAL
TELEPHONE COMPANY’S APPLICATION
FOR A 2020 INVESTMENT TAX CREDIT
FOR INSTALLING QUALIFYING
BROADBAND EQUIPMENT
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CASE NO. FMT-T-21-01

ORDER NO. 35016

On February 17, 2021, Farmers Mutual Telephone Company (“Company”) applied to
the Idaho Public Utilities Commission (“Commission”) for an order confirming that equipment it
installed in 2020 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 is “qualified broadband equipment” under Idaho Code § 63-3029I.
THE APPLICATION
In its Application, the Company states that in 2020 its net investment in qualifying
broadband equipment was $4,638,631.33. Application, Exhibit A. The Company asserts it made
certain investments that constitute “qualified broadband equipment”. Application at 1; see Idaho
Code § 63-3029I(3)(b). The Company states the installed equipment is capable of transmitting
signals at rates that meet or exceed the required rates of 200,000 bits per second to a subscriber
and 125,000 bits per second from a subscriber. Application, Exhibit A. The Company estimates
that more than 94% of its Idaho customers have access to the Company’s broadband network. See
Commission Staff’s April 14, 2021 Decision Memorandum at 2. Finally, the Company certifies
that the equipment it lists in its Application qualifies for the broadband tax credit under Idaho
Code § 63-3029I. Application, Exhibit A.
THE BROADBAND EQUIPMENT TAX 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
ORDER NO. 35016 2

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).
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 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 Application and Staff’s recommendation, we find that
the Company’s equipment identified in Case No. FMT-T-21-01 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.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for an order confirming
that equipment it installed in 2020 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 (or in issues finally
decided by this order) may petition for reconsideration within twenty-one (21) days of the service
date of this order regarding any matter decided in this order. Within seven (7) days after any person

1 The Commission issued Order No. 28784 pursuant to Idaho Code § 63-3029I(4), which empowers the Commission
to “issue procedural orders necessary to implement” the statute.
ORDER NO. 35016 3

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 26th day
of April 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\TELEPHONE\FMT-T-21-01\FMTT2101_final_mh.docx