20150429final_order_no_33288.pdf

Office of the Secretary
Service Date
April 29,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF FIRST STEP INTERNET,)
LLC’S BROADBAND EQUIPMENT TAX )CASE NO.FSI-T-15-0l
CREDIT APPLICATION FOR 2006-2013.)
__________________________________
ORDER NO.33288
On January 13,2015,First Step Internet,LLC (“First Step”or “Company”)applied to
the Idaho Public Utilities Commission (“Commission”)for an Order confirming that equipment
it installed for calendar years 2006 through 2013 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 §63-30291.
THE APPLICATION
In its Application,First Step indicated that from 2006 to 2013,it invested about
$2,237,300 in qualifying broadband equipment.See Application,Attached Worksheet.
According to First Step,the installed equipment is associated with Ethernet,digital subscriber
line (DSL),frame relay,and fixed wireless services.Id.The Company stated that the equipment
is capable of transmitting signals at rates of one megabit per second (Mbps)to one gigabit per
second (Gbps),to or from a customer.1 Id.at 1.The Company also stated that the equipment
was installed in and around exchanges in Moscow,Lewiston,Deary,Troy,Bovill,Genessee,
Potlatch,and Orofino.Id.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §60-3 0291 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 §63-30291(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 bits per second (bps)to a subscriber and at least 125,000 bits
per second (bps)from a subscriber.Idaho Code §63-30291(3)(b).In addition,to be “qualified
One Mbps equals 1,000,000 bits per second (bps).One Gbps equals 1,000 Mbps.
ORDER NO.33288 1
broadband equipment”the equipment must be “primarily used to provide services in Idaho to
Idaho public subscribers.”See Idaho Code §63-30291(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).
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.That Order specifies the information the taxpayer must include in the broadband tax
credit application.When the taxpayer files the application,the Commission 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 First Step’s Application under Idaho Code §63-30291.Based on its
review,Staff believes that the Company is a fixed wireless service provider and that the listed
equipment meets the statutory criteria and is “qualified broadband equipment”that is eligible for
the tax credit.Staff also believes the Company’s identified expenditures “were for equipment
that is ‘necessary for the provision of broadband services and an integral part of a broadband
network.”Staff Comments at 2.Staff thus recommended the Commission:(1)issue an Order
confirming that First Step’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 First Step’s Application and Staffs recommendation,we find that
the Company’s equipment is “qualified broadband equipment”eligible for the tax credit under
idaho Code §63-30291.The listed equipment (as presently configured)is an integral part of the
Company’s broadband network and is necessary to the provision of broadband service to Idaho
customers.Accordingly,based on what has been provided,we find it appropriate to issue an
Order confirming that First Step’s equipment is “qualified broadband equipment.”The
Commission makes no findings regarding the costs of the installed broadband equipment or other
expenses.
ORDER NO.33288
ORDER
IT IS HEREBY ORDERED that First Step Internet.LLCs Application for an Order
confirming that equipment it installed for the years 2006-20 13 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
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 cZ9
day of April 2015.
PAUL KJELLANDER,PRESIDENT
N
MACK A.REDFORD COMMISSIONER
LA
KRSTINE RAPER,COI4IMISSIONER
ATTEST:
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ommission Secretary
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ORDER NO.33288 3