20170328final_order_no_33731.pdf

Office of the Secretary
Service Date
March 28,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
FATBEAM LLC FOR AN INVESTMENT TAX )CASE NO.FZ4-T-17-O1
CREDIT FOR INSTALLING QUALIFYING )
BROADBAND EQUIPMENT )ORDER NO.33731
_____________________________________________________________________________________)
On January 19,2017,Fatbeam LLC applied to the Idaho Public Utilities Commission
for an Order confirming that equipment it installed for calendar year 2016 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 2016,it invested $2,316,515 in
qualifying broadband equipment.See Application at 15.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 the Post Falls and Coeur d’Alene metropolitan areas,Twin
Falls,Sandpoint,and Rathdrum.Id.The Company also stated 100%of its customer base has
access to its broadband services.Id.at 1.In a March 23,2017 supplement,the Company
clarified that the expenses listed in its Application are “an integral part of [its]networks.”Letter.
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 bits
per second (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.”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
ORDERNO.33731 1
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 Fatbeam’s Application and recommended that the Commission
confirm the Company’s equipment as “qualified broadband equipment,”and 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-
3 0291.The listed equipment (as presently configured)is an integral part of the Company’s
broadband network,per the Company’s March 23,2017 supplement.Further,we find the
Company’s listed equipment 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 2016 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
ORDERNO.33731 2
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.
-tDONEbyOrderoftheIdahoPublicUtilitiesCommissionatBoise,Idaho this
day of March 2017.
PAXSL KJEL A)ER,PRESIDENT
4th
KRJ TINE RAPER,CO MISSIONER
ATTEST:
.
J J1
Diane M.Hanian
Commission Secretary
O:FZ4Ti 7-Oldjh
ERIC ANDERSON,
ORDERNO.33731 3