20210920Final_Order_No_35170.pdf

ORDER NO. 35170 1

Office of the Secretary
Service Date
September 20, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FREMONT TELCOM
COMPANY’S APPLICATION FOR A 2020
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT
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CASE NO. FRE-T-21-01

ORDER NO. 35170

On August 18, 2021, Fremont Telcom Company (“Company”) applied to the Idaho
Public Utilities Commission (“Commission”) for an order confirming that equipment the
Company 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
The Company states that in 2020 its net investment in qualifying broadband equipment
was $971,339. See Broadband Equipment List attached to the Company’s Application. The
Company asserts it made certain investments that constitute “qualified broadband equipment”.
Application at 1. The Company states that its transmission rates are 768,000 bits per second (“bps”)
to 100 million bits per second (“Mbps”) to the subscriber and 256,000 bps to 100 Mbps from the
subscriber, and that this speed meets the requirements of Idaho Code § 63-3029I. Id. at 2. The
Company also states that 73% of its regulated Idaho subscribers have access to the broadband
network. Id. Finally, the Company confirms through its exhibits that the qualifying broadband
equipment is an integral part of the broadband network. See Broadband Equipment List attached
to the Company’s Application.
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
Code § 63-3029I(3)(b)); and (2) is “primarily used to provide services in Idaho to public
ORDER NO. 35170 2
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).
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 (“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 and audited the list of proposed broadband equipment and believed the
identified equipment qualifies for the investment tax credit pursuant to procedural Order No.
28784 and Idaho Code § 63-3029I(3)(b). Staff recommended the Commission issue an order
confirming the equipment is qualified broadband equipment and forward the approving order and
a copy of the Application to the Idaho 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. FRE-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 this 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 the Company 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.

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. 35170 3
THIS IS A FINAL ORDER. Any person interested in 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 20th day
of September 2021.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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