20040409Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DOUG COOLEY
DATE:APRIL 8, 2004
RE:BROADBAND TAX CREDIT APPLICATION OF SPEEDYQUICK
NETWORKS; CASE NO. GNR-04-
BACKGROUND
On March 30, 2004, the Commission received an Application from SpeedyQuick
Networks, Inc. asking for approval of equipment for the broadband tax credit pursuant to Order
No. 28784 and Idaho Code ~ 63-30291(4). To be eligible for the tax credit, the taxpayer must
obtain from the Commission an Order confirming that installed equipment qualifies for the tax
credit.
STAFF ANALYSIS
In its Application, SpeedyQuick states that it installed wireless broadband equipment
during calendar year 2003. This equipment is used to provide high-speed Internet access via
wireless transmission in Ada and Canyon counties. Such components include multi-point
antennae and customer premises antennae, signal amplifiers, a router and a switch. SpeedyQuick
states that transmission rates range from 256 Kbps to 2 Mbps. SpeedyQuick estimates that it
invested approximately $20 000 in qualifying broadband equipment during 2003.
STAFF REVIEW
Staffhas reviewed the lists of proposed broadband equipment submitted by SpeedyQuick
and believes that the equipment identified qualifies for the investment tax credit pursuant to
Idaho Code ~ 63-30291. It is Staffs understanding that all the listed equipment except one
DECISION MEMORANDUM APRIL 8 , 2004
router and switch is exterior equipment that is encased on the towers or antennae specific to
Idaho Code ~ 63-3029I(3)(b)(iv). In the case of the one interior router and one interior switch
Staff believes these are practical necessities and this equipment is a primary and integral part of
SpeedyQuick's network (Idaho Code ~ 63-3029I(3)(b)(vii)). Therefore, Staff recommends the
Commission approve the Application and forward the approving Order along with a copy of the
original Application to the Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve SpeedyQuick Network's Application for the broadband
investment tax credit?
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i:udmemos/speedquick
DECISION MEMORANDUM APRIL 8, 2004