20030312Final Order No 29441.pdf

Office of the Secretary
Service Date
March 12, 2004
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF CABLE ONE, INC. CONCERNING
INVESTMENT FOR INSTALLING QUALIFIED
BROADBAND EQUIPMENT TAX CREDIT.
CASE NO. GNR- T -03-
ORDER NO. 29441
On August 26, 2003 , the Commission issued Order No. 29326 certifying that Cable
One, Inc. had installed broadband equipment that qualified for a tax credit set forth at Idaho
Code ~ 63-30291. Pursuant to that section, an Idaho taxpayer may receive a tax credit for
installing eligible equipment, which must be part of a network facility 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 bps from a subscriber. In addition, equipment installed by a cable operator must extend
from the subscriber side of the installer s headend facility to the outside of the structure in which
the subscriber is located. The taxpayer may receive the credit only after obtaining from the
Commission an Order confirming that the installed equipment is "qualified broadband
equipment." Idaho Code ~ 63-30291(4).
THE APPLICATION
On February 3, 2004, Cable One filed a supplemental Application asking for the
Commission s approval of additional equipment qualifying for a tax credit. In its supplemental
request, Cable One identified labor and materials associated with headend equipment that it
failed to include in its original Application. In its supplemental Application, the Company
calculated that it is eligible for an additional tax credit of $35 416 in 2001 and $30 495 in 2002
related to drop equipment and labor that was not included in Cable One s original Application.
Because the broadband tax credit applies only to expenditures that are necessary to provide the
equipment to the outside of the structure to which the subscriber is located, Cable One estimated
that 60% of its expenses associated with the drop line apply to the line between the utility pole
and the outside of the subscriber s structure.
Staff reviewed the Application filed by Cable One to confirm that the equipment
satisfies the definition of "qualified broadband equipment" set forth in Idaho Code ~ 63-30291.
ORDER NO. 29441
Staff confirmed that the equipment identified by Cable One in its supplemental Application
meets the statute s definition.
FINDINGS
Having reviewed the supplemental Application filed by Cable One and Staff
recommendation, the Commission finds that the Company s Application for an additional Order
should be granted. The Company demonstrated that it installed the equipment identified in its
supplemental Application and that the equipment conforms with the requirements set forth in
Idaho Code ~ 63-30291. The Commission only certifies that qualifying equipment has been
installed, and thus cannot confirm that Cable One s estimate of the costs eligible for the tax
credit is correct. This Order along with the supplemental Application will be forwarded to the
Idaho State Tax Commission.
ORDER
IT IS HEREBY ORDERED that Cable One s supplemental Application for an Order
certifying that it installed qualified broadband equipment is approved. The Commission
Secretary will forward this Order along with a copy of the supplemental Application to 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 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.
ORDER NO. 29441
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this j:L
day of March 2004.~t#PAULKJELL , PRESIDENT .
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MARSHA H. SMITH, COMMISSIONER
ATTEST:
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Je D. Jewell
Commission Secretary
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ORDER NO. 29441