20231109Final_Order_No_35989.pdf

ORDER NO. 35989 1
Office of the Secretary
Service Date
November 9, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF FATBEAM, LLC’S
APPLICATION FOR THE 2022
BROADBAND EQUIMENT TAX CREDIT
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CASE NO. FZ4-T-23-01

ORDER NO. 35989

On August 25, 2023, Fatbeam, LLC filed an amended application (“Application”) for an
order confirming that equipment it installed in 2022 is “qualified broadband equipment” under
Idaho Code § 63-3029I (Income tax credit for investment in broadband equipment). On October
17, 2023, the Company submitted an addendum to its application to comply with new requirements
of Order No. 35297, which supersedes Order No. 28784.With this Order, we confirm that the
installed equipment is “qualified broadband equipment” under Idaho Code § 63-3029I.
THE APPLICATION
The Company asserted that it made certain investments in “qualifying broadband
equipment” during 2022. Application at 3–4; see Idaho Code § 63-3029I(3)(b). Specifically, the
Company represented that it invested approximately $2,716,966 in qualifying broadband
equipment eligible for the investment tax credit authorized by Idaho Code § 63-3029I. The
Company indicated that it offered transmission rates of 5 gigabits per second (“G”) to and from
broadband subscribers, 1.4 G to and from fixed microwave subscribers, and 1 G to and from Fiber
to the Home subscribers. The Company further indicated that it served 2,000 residential and 275
non-residential customers in Idaho. Finally, the Company certified the equipment listed in
Broadband Equipment List attached to its Application “qualifies for the tax credit” under Idaho
Code § 63-3029I. Application at 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 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 and “is capable of transmitting signals at a rate of at
ORDER NO. 35989 2
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). 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 issued Order No. 28784.1
That order specifies the information the taxpayer must include in the broadband tax credit
application. In Case No. GNR-T-21-10, the Commission modified the informational requirements
set forth by Order No. 28784. See Order No. 35297.
When the taxpayer applies, Commission Staff (“Staff”) reviews the application 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 the Company’s Application under Idaho Code § 63-3029I. Based on its
review, Staff believed that the equipment listed in the Company’s Broadband Equipment List
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 the
Company’s equipment identified in Case No. FZ4-T-23-01 is “qualified broadband equipment”
eligible for the tax credit under Idaho Code § 63-3029I. Accordingly, it is appropriate for the
Commission to issue this Order confirming the Company’s equipment is “qualified broadband
equipment.” The Commission makes no findings regarding the costs of the installed broadband
equipment or other expenses.

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. 35989 3
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for an order confirming that
equipment it installed in 2022 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 regarding any matter decided therein. 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 9th day of
November 2023.

ERIC ANDERSON, PRESIDENT

JOHN R. HAMMOND JR., COMMISSIONER

EDWARD LODGE, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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