20220926Final_Order_No_35535.pdf

ORDER NO. 35535 1
Office of the Secretary
Service Date
September 26, 2022 BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FATBEAM’S 2021
APPLICATION FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFYING
BROADBAND EQUIPMENT
)
)
)
)
)
)
CASE NO. FZ4-T-22-01

ORDER NO. 35535

On May 25, 2022, Fatbeam, LLC, (“Company”) applied to the Idaho Public Utilities
Commission (“Commission”) for an order confirming that equipment it installed in 2021 is
“qualified broadband equipment” under Idaho Code § 63-3029I (Income tax credit for investment
in broadband equipment). On August 24, 2022, the Company submitted an amended application
(“Application”) to comply with the new requirements of Commission Order No. 35297. With this
Order, we confirm that the installed equipment is “qualified broadband equipment” under Idaho
Code § 63-3029I.
THE APPLICATION
In its Application, the Company says it installed network equipment in Ada, Benewah,
Bonner, Boundary, Canyon, Cassia, Clearwater, Elmore, Gem, Gooding, Jerome, Kootenai,
Owhyee, Shoshone, and Twin Falls Counties that constitutes “qualified broadband equipment”
with transmission rates that exceed the minimum statutory speed requirements under Idaho Code
§ 63-3029I. Application at 1. The Company indicated that its broadband network serves 253 non-
residential Idaho customers and 2,000 residential Idaho customers. Id. at 3-4.
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 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 public subscribers.
See Idaho Code § 63-3029I(3)(b)(vii). Further, in “the case of a telecommunications carrier, such
ORDER NO. 35535 2
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 issued Order No. 28784.1
That Order specified the information the taxpayer must include in the broadband tax credit
application. In Case No. GNR-T-21-10, Order No. 35297, the Commission modified the
informational requirements set forth by Order No. 28784. When the taxpayer applies, 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 taxpayer’s Application, then the
Commission forwards it and the order to the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed the Company’s Application under Idaho Code § 63-3029I. Based on its
review, 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 confirming 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 recommendations, we find that
the Company’s equipment identified in Case No. FZ4-T-22-01 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 it installed in 2021 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.

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” Idaho Code § 63-3029(4).
ORDER NO. 35535 3
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 26th day of
September 2022.

______________________________________
ERIC ANDERSON, PRESIDENT

_______________________________________
JOHN CHATBURN, COMMISSIONER

_______________________________________
JOHN R. HAMMOND, JR., COMMISSIONER

ATTEST:

___________________________
Jan Noriyuki
Commission Secretary

I:\Legal\TELECOM\FZ4T2201_final_cs.docx