20160722final_order_no_33558.pdf

Office ofthe Secretary
Service Date
July 22,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
CABLE ONE,INC SEEKING A BROADBAND )CASE NO.GNR-T-15-04
EQUIPMENT TAX CREDIT FOR 2014 )
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ORDER NO.33558
On June 8,2015,Cable One,Inc.applied to the Commission for an Order confirming
that equipment it installed in 2014 was qualifying broadband infrastructure pursuant to Idaho
Code §63-30291 (Income tax credit for investment in broadband equipment).The Company
filed revisions to its Application on July 13,2015,and June 3,2016.
THE APPLICATION
Cable One states that during 2014,it made improvements to its high-speed data
service by making investments in a Hybrid Coax Network.As a cable or open video system
operator,the Company also submits that its claimed improvements comply with the requirements
of Idaho Code §61-30291(3)(b)(iii),as applied to cable or open video system operators.
Along with its Application,the Company includes an itemized inventory of installed
equipment,including buried cable and fiber,and labor necessary to bring the network online and
operational.Cable One states that its broadband services are available to approximately 75%of
customers in its service area,and 99.9%of customers that have access to the Company’s cable
service,at network transmission rates of at least 200,000 bps to a subscriber,and 125,000 bps
from a subscriber.According to the Company,its 2014 broadband investment was
$7,063,017.95 spread across the Twin Falls,Lewiston,Pocatello,Idaho Falls,Boise,and West
Valley areas.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §63-3 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 “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).In addition,qualified broadband
equipment must be “primarily used to provide services in Idaho to public subscribers.”Idaho
ORDERNO.33558 1
Code §63-30291(3)(b)(vii).Further,in “the case of a cable or open video system operator,such
qualifying equipment shall extend from the subscriber’s side of the headend to the outside of the
structure in which the subscriber is located.”Idaho Code §63-30291(3)(b)(iii).
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784 that specifies the information the taxpayer must include in a 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
approves the application,the Commission will direct that the application,and the Order
approving it be forwarded to the Idaho State Tax Commission.
STAFF REVIEW
After the Company filed two amendments to its original Application,Staff reviewed
the filing under Idaho Code §63-30291 and Commission Order No.28784.Based on its review,
Staff reported to the Commission that the Company is a cable or open video system operator and
that the listed equipment meets the statutory criteria of “qualified broadband equipment”eligible
for the tax credit.Staff thus recommended the Commission:(1)issue an Order confirming that
Cable One’s equipment is “qualified broadband equipment,”and (2)forward copies of the
Application and this Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the broadband tax credit,a taxpayer must first obtain
an Order from the Commission “confirming that the installed equipment is qualified broadband
equipment.”Idaho Code §63-30291(4).“In the case of a cable or open video system operator,
such qualifying equipment shall extend from the subscriber’s side of the headend to the outside
of the structure in which the subscriber is located.”Idaho Code §63-30291(3)(b)(iii).
Based upon our review of the Company’s Application and the recoimnendation of
Staff,we find the Company’s request that the Commission issue an Order confirming installation
of qualified broadband equipment should be approved.Cable One has adequately demonstrated
that the equipment identified in its Application qualifies as broadband equipment eligible for the
tax credit.The Commission also finds that Cable One is a cable or video system operator,and it
appears that its claimed equipment resides between the subscriber’s side of the headend,and the
outside of the structure in which the subscriber is located.Therefore,the Commission certifies
ORDER NO.33558 2
in this Order that the equipment identified in Cable One’s Application 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 Cable One’s Application seeking an Order
certifying that it has installed qualifying broadband equipment in Idaho during the 2014 calendar
year is approved.
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 FNAL 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.Idaho Code §61-626,63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of July 2016.
PAf KJELL R,RESIDENT
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KRI [NE RAPER COIVIMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
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