20210722Final Order No. 35111.pdf

ORDER NO. 35111 1

Office of the Secretary
Service Date
July 22, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FATBEAM, LLC’S
APPLICATION FOR A 2020 INVESTMENT
TAX CREDIT FOR INSTALLING
QUALIFIED BROADBAND EQUIPMENT
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CASE NO. FZ4-T-21-01

ORDER NO. 35111

On May 21, 2021, Fatbeam, LLC ("Company") applied to the Idaho Public Utilities
Commission ("Commission") for an order confirming that equipment the Company installed in
2020 is "qualified broadband equipment" under Idaho Code § 63-3029I (Income tax credit for
investment in broadband equipment).
With this Order, the Commission confirms that the installed equipment is "qualified
broadband equipment" under Idaho Code § 63-3029I.
THE APPLICATION
In the Application, the Company represents it is a "Competitive Access Provider
(Broadband)." Application at 2. The Company asserts it installed equipment associated with "Lit
Ethernet . . . Dark Fiber, and a 1GB Internet product." Id. at 1. The Company discloses that its
broadband network has data transmission rates of 1GB speed upstream and downstream which
exceeds the required rates of 200,000 bits per second to a subscriber and 125,000 bits per second
from a subscriber. Id. The Company asserts that 100% of its Idaho subscribers have access to the
broadband network. Id. The Company invested approximately $1,910,770.08 in 2020 in
qualifying broadband equipment that it certifies and believes qualifies under Idaho Code § 63-
3029I. See Transaction Report attached to Application.
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 that 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 that "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 § 63-3029I(3)(b)); and (2) is "primarily used to provide services in Idaho to Idaho public
ORDER NO. 35111 2

subscribers." See Idaho Code § 63-3029I(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 § 63-3029I(3)(b)(i). In furtherance of its
statutory responsibility, the Commission has issued Order No. 28784.1 That order specifies the
information the taxpayer must include in the broadband tax credit application. When the taxpayer
files the application, the 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 has reviewed and audited the list of proposed broadband equipment and believes
the identified equipment qualifies for the investment tax credit pursuant to procedural Order No.
28784 and Idaho Code § 63-3029I(3)(b). Staff recommends that the Commission issue an order
confirming the equipment is qualified broadband equipment and forward the approving order and
a copy of the Application to the Idaho 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-21-01 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.
ORDER
IT IS HEREBY ORDERED that the Company's Application for an order confirming
that equipment the Company installed in 2020 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 may petition for
reconsideration within twenty-one (21) days of the service date of this Order with regard to any

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. 35111 3

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 22nd day
of July 2021.

__________________________________________
PAUL KJELLANDER, PRESIDENT

__________________________________________
KRISTINE RAPER, COMMISSIONER

__________________________________________
ERIC ANDERSON, COMMISSIONER

ATTEST:

_________________________________
Jan Noriyuki
Commission Secretary

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