20221017Final_Order_No_35565.pdf

ORDER NO. 35565 1
Office of the Secretary
Service Date
October 17, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FREMONT TELECOM
CO.’S APPLICATION FOR A 2021
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
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CASE NO. FRE-T-22-01

ORDER NO. 35565

On August 29, 2022, Fremont Telecom Co. (“Company”) applied 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). On September 19, 2022, the
Company filed an amended application (“Amended Application”). The Amended Application
adjusted the amount of broadband investment for 2021. With this Order, we confirm that the
installed equipment is “qualified broadband equipment” under Idaho Code § 63-3029I.
THE APPLICATION
The Company asserted it made certain investments that constituted “qualified broadband
equipment.” Amended Application at 1; see also Idaho Code § 63-3029I(3)(b). Specifically, the
Company stated that its net investment in qualifying broadband equipment in 2021 was
$8,003,282.13. See Id. The Company indicated that transmission rates from 768,000 bits per
second (“bps”) to 1 Gbps to a subscriber and 256,000 bps to 1 Gbps from a subscriber meet the
statutory requirement of 200,000 bps. See Idaho Code § 63-3029I(3)(b). The Company further
indicated that 75% of its Idaho subscribers have access to the broadband network. Id. at 2. Finally,
the Company certified that the equipment it lists in its Amended Application “qualifies for the tax
credit under Idaho Code 63-9329I.” Id.
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 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 and “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 §
ORDER NO. 35565 2
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). 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 issued Order No. 28784.1
That order specifies the information the taxpayer must include in the broadband tax credit
application. In 2021, in Case No. GNR-T-21-10, the Commission modified the informational
requirements set forth by Order No. 28784. See Order No. 35297.
When the taxpayer files the application, 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 Amended Application under Idaho Code § 63-3029I. Based
on its review, Staff believed 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 Amended Application and order to the Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Amended Application and Staff’s recommendations, we
find that the Company’s equipment identified in Case No. FRE-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.
O R D E R
IT IS HEREBY ORDERED that the Company’s Amended Application for an order
confirming that equipment it installed in 2021 is “qualified broadband equipment” is granted.

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. 35565 3
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Amended
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
date of this Order regarding any matter decided therein. 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 17th day of
October 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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