20150611final_order_no_33320.pdf

Office of the Secretary
Service Date
June 11,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF BLACKFOOT )
COMMUNICATIONS,INC.DBA FREMONT )CASE NO.FRC-T-15-01
COMMUNICATIONS’2014 BROADBAND )
EQUIPMENT TAX CREDIT APPLICATION )ORDER NO.33320
On May 11,2015,Blackfoot Communications dba Fremont Communications applied
to the Idaho Public Utilities Commission (“PUC”or “Commission”)for an Order confirming
that equipment it installed in 2014 is “qualified broadband equipment”under Idaho Code §63-
30291 (Income tax credit for investment in broadband equipment).With this Order,we confirm
that the equipment is “qualified broadband equipment”under Idaho Code §63-30291.
THE APPLICATION
Fremont states in the Application that it installed equipment associated with
Asymmetric digital subscriber line (ADSL)and Ethernet broadband services (using 18k non-
loaded copper distribution,fiber optic backbone and distribution cable).The network is capable
of transmission speeds of 256 Kbps to 1 Mbps from a subscriber and 768 Kbps to 1 Mbps to a
subscriber.Fremont states further that it can serve approximately 50%of its customers with
broadband services.Fremont invested $544,366.97 in broadband equipment in 2014.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §63-30291 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 this Commission for an Order confirming that
the installed equipment is “qualified broadband equipment”as defined in the statute.Idaho
Code §63-30291(4).That 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 §63-30291(3)(b).In addition,to be “qualified broadband equipment”
the equipment must be “primarily used to provide services in Idaho to Idaho 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 §63-30291(3)(b)(i).
ORDER NO.33320 1
In furtherance of its statutory responsibility,this Commission has issued Order No.
28784,which specifies the information the taxpayer must include in any broadband tax credit
application.When the taxpayer files an application with the PUC,Staff reviews it to determine
whether the listed equipment meets the statutory definition of “qualified broadband equipment.”
Staff then submits a recommendation to this Commission.If this Commission ultimately
approves the application,then this Commission forwards it and the Order to the Idaho State Tax
Commission.
STAFF REVIEW
Staff reviewed Fremont’s Application under Idaho Code §63-30291 and Commission
Order No.28784.Based on its review,Staff believes that Fremont 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 Fremont’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 Fremont’s Application and Staffs recommendation,we find that
Fremont’s equipment is “qualified broadband equipment”eligible for the tax credit under Idaho
Code §63-30291.Fremont is a telecommunications carrier.Further,the listed equipment (as
presently configured)is an integral part of Fremont’s broadband network and is necessary to the
provision of broadband service to Idaho customers.Accordingly,it is appropriate for the
Commission to issue an Order confirming that Fremont’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 Blackfoot Communications,Inc.dba Fremont
Communications’Application for an Order confirming that equipment it installed in 2014 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
ORDER NO.33320 2
service 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 62-6 19.
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DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this I /
day of June 2015.
PAUL KJELLA ,P ESIDENT
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MACK A.REDFORD,COMMISSIONER
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K ST1NE RAPER.COMMISSIONER
ATTEST:
Jtn D.Jewell
C6mmission Secretary
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ORDERNO.33320 3