20210903Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DANIEL KLEIN
DATE:SEPTEMBER 2,2021
RE:BLACKFOOT COMMUNICATIONS,INC'S 2020 BROADBAND
EQUIPMENTTAX CREDIT;CASE NO.FRC-T-21-01.
BACKGROUND
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).In particular,
Section 63-3029I allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadbandequipment 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 from the Commission an Order confirming that the
installed equipment meets the statutory definition of qualified broadband equipment.Procedural
Order No.28784 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.
DECISION MEMORANDUM -1 -SEPTEMBER 2,2021
THE APPLICATION
On May 28,2020,the Commission received an Application from Blackfoot
Communications,Inc.("Blackfoot"or "Company"),seeking approval of the equipment for the
broadband tax credit installed during calendar year 2020.In the Application,Blackfoot states
that it installed equipment associated with Asymmetric Digital Subscriber Line (ADSL),Very-
high-bit-rate Digital Subscriber Line (VDSL),BroadbandEthernet and Wavelength services.
Blackfoot discloses that its broadband network has data transmission rates of 256Kbps to 1 Mbps
from a subscriber and 768 Kbps to 1 Mbps to a subscriber which meets the required rates of
200,000 bits per second to a subscriber and 125,000 bits per second from a subscriber.The
Company asserts that 83%of its Idaho customers have broadband services.Blackfoot invested
approximately $20,058 in 2020 in qualifyingbroadband equipment that it confirms is integral to
the broadband network.
STAFF REVIEW AND RECOMMENDATION
Staff has reviewed and audited the list of proposed broadband equipment and believes the
identified equipment qualifies for the investment tax credit pursuant to Procedural Order No.
28784 and Idaho Code §63-3029I(3)(b).Staff,therefore,recommends that the Commission
issue an Order confirmingthe equipment is qualified broadband equipment and forward the
approving Order along with a copy of the original Application to the Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirmingthe equipment identified in
Case No.FRC-T-21-01 is qualified broadband equipment as defined in Idaho Code
§63-3029I(3)(b)and forward it to the Idaho Tax Commission?
Daniel Klein
Udmemos/FRC-T-2I-01 2017 Blackfoot Broadband Tax Credit dec memo
DECISION MEMORANDUM -2 -SEPTEMBER 2,2021