20220908Final_Order_No_35524.pdf

ORDER NO. 35524 1
Office of the Secretary
Service Date
September 8, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FARMERS MUTUAL
TELEPHONE COMPANY’S 2021
APPLICATION FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFYING
BROADBAND EQUIPMENT
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CASE NO. FMT-T-22-01

ORDER NO. 35524

On July 18, 2022, Farmers Mutual Telephone Company (“Company”) applied to the Idaho
Public Utilities Commission (“Commission”) for an order confirming that equipment it installed
in 2021 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 says it “made certain investments that constitute ‘qualified
broadband equipment’” with transmission rates of at least 25 million bits per second (“mbps”) to
a subscriber and at least 3 mbps from a subscriber. Application at 1, and Exhibit A. The Company
indicated it installed the broadband equipment in the areas of Fruitland and Nu Acres Idaho, and
that its broadband network serves 2,557 of a potential 2,714 customers. 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 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 public subscribers.
See Idaho Code § 63-3029I(3)(b)(vii). Further, in “the case of a telecommunications carrier, such
qualifying equipment shall be necessary to the provision of broadband service and an integral part
of a broadband network.” Idaho Code § 63-3029I(3)(b)(i).
ORDER NO. 35524 2
In furtherance of its statutory responsibility, the Commission issued Order No. 28784.1
That Order specified the information the taxpayer must include in the broadband tax credit
application. In 2022, in Case No. GNR-T-21-10, Order No. 35297, the Commission modified the
informational requirements set forth by Order No. 28784. When the taxpayer files the Application,
the Commission Staff (“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 Application and Staff’s recommendations, we find that
the Company’s equipment identified in Case No. FMT-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 (or in issues finally
decided by this order) may petition for reconsideration within twenty-one (21) days of the service

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” Idaho Code § 63-3029(4).
ORDER NO. 35524 3
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 8th day of
September 2022.

______________________________________
ERIC ANDERSON, PRESIDENT

_______________________________________
JOHN CHATBURN, COMMISSIONER

_______________________________________
JOHN R. HAMMOND, JR., COMMISSIONER

ATTEST:

_____________________________
Jan Noriyuki
Commission Secretary

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