20160316final_order_no_33483.pdf

Office of the Secretary
Service Date
March 16,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF FATBEAM LLC’S
BROADBAND EQUIPMENT TAX CREDIT )CASE NO.FZ4-T-16-Ol
APPLICATION )
)ORDER NO.33483
_______________________________________________________________________________)
On March 2,2016,Fatbeam LLC applied to the Commission for an Order confirming
that equipment it installed for calendar year 2015 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 meets that statutory definition.
THE APPLICATION
In its Application,Fatbeam indicated that in 2015,it invested $427,100 in qualifying
broadband equipment.See Application at 7.Fatbeam stated that it installed equipment
associated with Lit Ethernet and Dark Fiber services.Id.at 1.According to Fatbeam,it
deployed broadband services in Bingham,Kootenai,and Power counties.Id.at 3-7.The
Company also stated 100%of its customer base has access to its broadband services.Id.at 1.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §63-3 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 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 public
subscribers.”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
ORDER NO.33483 1
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 Fatbeam’s Application.Staff recommended that the Commission
confirm the Company’s equipment as “qualified broadband equipment,”and that it forward
copies of the Application and Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
We have reviewed Fatbeam’s Application and Staffs recommendation.We find that
Fatbeam is a qualified telecommunications provider.We further 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 Fatbeam’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 Fatbeam LLC’s Application for an Order
confirming that equipment it installed for 2015 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.
ORDER NO.33483 2
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /,
day of March 2016.
/I
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KRIS1NE RAPER,COM!VIISSIONER
J
ERIC ANDERSON,COMMISSIONER
ATTEST:
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i’ommission Secretary
O:FZ4-T-16-0 ldjh
PAUL KJELLANDER,
ORDER NO.33483 3