20180403final_order_no_34022.pdf

Office of the Secretary
Service Date
April 3,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.FZ4-T-18-01
OF FATBEAM,LLC FOR AN )
INVESTMENT TAX CREDIT FOR )INSTALLING QUALIFYING BROADBAND )ORDER NO.34022
EQUIPMENT )
On January 31,2018,Fatbeam,LLC applied to the Idaho Public Utilities Commission
for an Order confirming that equipment it installed for calendar year 2017 is "qualified
broadband equipment"under Idaho Code §63-3029I (Income tax credit for investment in
broadband equipment).An Amendment to the Application was filed on March 22,2018.With
this Order,we confirm that the installed equipment meets that statutory definition.
THE APPLICATION
In its Application,the Company indicated that in 2017 it invested $2,748,429 in
qualifying broadband equipment.See Application at 17.The Company stated that it installed
equipment associated with Lit Ethernet and Dark Fiber services.Id at 1.According to the
Company,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.
THE BROADBAND EQUIPMENTTAX 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 confirmingthat
the installed equipment is "qualified broadband equipment"as defined in the statute.Idaho
Code §63-3029I(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 §63-3029I(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 §63-3029I(3)(b)(vii).Further,in "the case of a
telecommunications carrier,such qualifyingequipment shall be necessary to the provision of
ORDER NO.34022 1
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.That Order speciñes 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
ultimatelyapproves the application,then the Commission forwards it and the Order to the Idaho
State Tax Commission.
STAFF REVIEW
Staff reviewed and audited the Company's Application under Idaho Code §63-3029I
and Commission Order No.28784.The Company's March 22 Amendment was based on the
results of Staff's audit.Based on its review and audit,Staff believes that the Company is a
telecommunications carrier and 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 certifying that the Company'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 the Company's Application and Staff's recommendation,we find
that the Company's equipment identified in Case No.FZ4-T-18-01 is "qualified broadband
equipment"eligible for the tax credit under Idaho Code §63-3029I.The Company is a
telecommunications carrier.Further,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,it is appropriate for the Commission to issue an Order
certifying 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.
ORDER
IT IS HEREBY ORDERED that the Company's Application for an Order confirming
that equipment identified in Case No.FZ4-T-18-01 installed in 2017 is "qualified broadband
equipment"is granted.
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.
ORDER NO.34022 2
THIS IS A FINAL ORDER.Any person interested in this order (or in issues fmally
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
day of April 2018.
PAUL KJÈLLANDER,PRESIDENT
KRIS INE RÃPER COÑlMISSIONER
ERIC ANDERSON,COMMISSIONER
'I¾ne M.Hanian
Commission Secretary
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ORDER NO.34022 3