20150611final_order_no_33319.pdf

Office of the Secretary
Service Date
June 11,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF FREMONT TELCOM )
COMPANY’S 2014 BROADBAND EQUIPMENT )CASE NO.FRE-T-15-01
TAX CREDIT APPLICATION )
_____________________________
ORDER NO.33319
On May 11,2015,Fremont Telcom Company 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 installed equipment
is “qualified broadband equipment”under Idaho Code §63-3 0291.
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 providing transmission speeds of 256 Kbps to 1 Mbps from a subscriber and 768 Kbps to 1
Mbps to a subscriber.Fremont states that it can serve approximately 50%of its customers with
broadband services.Fremont invested $1,366,342.48 in broadband equipment during 2014.See
Application.
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,
ORDERNO.33319 1
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).
In furtherance of its statutory responsibility,the PUC has issued Order No.28784,
which specifies the information a taxpayer must include in the broadband tax credit application.
When the taxpayer files the application,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 the Commission.If the Commission ultimately approves the application,
then 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 Fremont Telcom Company’s 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.
ORDERNO.33319
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 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 //
day of June 2015.
A R,P ESIDENT
/
‘i
MACK A.REDFORD,COv1MISSIONER
ATTEST:
Jn D.Jewell
Commission Secretary
O:FRE-T-15-Olbk
ORDERNO.33319 3