20140923final_order_no_33132.pdf

Office of the Secretary
Service Date
September 23,2014
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CABLE ONE,INC.’S 2013 )
BROADBAND EQUIPMENT TAX CREDIT )CASE NO.GNR-T-14-05
APPLICATION.)
)ORDER NO.33132
On June 27.2014.Cable One,Inc.(the “Company’)applied to the Idaho Public
Utilities Commission (“Commission”)for an Order confirming that equipment it installed in
2013 is quaIified broadband equipment”under Idaho Code §63-30291 (Income tax credit for
investment in broadband equipment).The Company filed an amended application on August 28,
2014 (the “Amended Application”).
With this Order,we confirm that the installed equipment is “qualified broadband
equipmenC under idaho Code §63-30291.
THE APPLICATION
In its Amended Application,the Company says it invested $9,199,675 in qualifying
broadband equipment in 2013,for which it seeks credit of $134,748.The Company says it
installed equipment associated with the Hybrid Coax Network (HFC)using fiber optic and
coaxial cable facilities with transmission rates of up to 50 megabits per second (i.e.,400,000,000
bits per second (“bps”)).The Compaiy says its broadband network can serve 99.9%o[its Idaho
customers.See Amended Application.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §60-3 0291 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 §63-30291(4).That 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 §63-30291(3)(b).Further,in the case of “cable or open video system
operator,such qualifying equipment shall extend from the subscribe?s side of the headend to the
outside of the structure in which the subscriber is located.”Idaho Code §63-30291(3)(b)(iii).
ORDERNO.33132 1
Lastly,to be “qualified broadband equipment.”the equipment must be “primarily used to
provide services in Idaho to Idaho public subscribers.”See Idaho Code §63-3029I(3)(b)(vii).
in furtherance of its statutory responsibility,the Commission has issued Order No.
28784.That Order specifies the information the taxpayer must include in the broadband tax
credit application.When the taxpayer files the application,the Commission 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 reviewed the Company’s Amended Application under Idaho Code §63-30291.
Based on its review.Stall believes that the Company is a cable or open video system operator,
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 Amended Application and Order to the Idaho State Tax Commission.
COMMISSION FINDIGS
Having reviewed the Companys Amended Application and Staffs recommendation,
we find that the Company’s equipment is “qualified broadband equipment”subject to the tax
credit under Idaho Code §63-30291.The Company is a cable or open video system operator.
Further,the listed equipment (as presently configured)extends from the subscriber’s side of the
headend to the outside of the structure in which the subscriber is located.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 Amended Application for an Order
confirming that equipment it installed in 2013 is “qualified broadband equipment,”is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Amended
Application (including its exhibits)be served on the Idaho State Tax Commission.
ORDERNO.33132 2
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 ,23 “
day of September 2014.
/))1 -!1’77/
,_._‘.1/•‘‘////
PAUL KJELANtD ,PRIDET
77
MACK A.REDF CdMMISSIONER
(L4
MARSHA H.SMITH,COMMISSIONER
ATTEST:
71 71.,2 ‘
/4L ‘
Jean D Jewell
C6mmission Scretary
O:GNR-T-I 4-O5kk
ORDERNO.33132 3