20151028final_order_no_33407.pdf

Office of the Secretary
Service Date
October 28,2O5
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE 2014 BROADBAND )
EQUIPMENT TAX CREDIT APPLICATION OF )CASE NO.GNR-T-15-08
CELLCO PARTNERSHIP AND VERIZON )
WIRELESS LLC,AN OPERATING ENTITY OF )
VERIZON COMMUNICATIONS,INC.DBA )ORDER NO.33407
VERIZON WIRELESS.)
On September 17,2015,Celico Partnership and Verizon Wireless TIC (a disregarded
entity of Celico Partnership),an operating entity of Verizon Communications,Inc.dba Verizon
Wireless (“Verizon”),applied to the Idaho Public Utilities Commission (“Commission”)for an
Order confirming that certain equipment it installed in 2014 is “qualified broadband equipment”
under Idaho Code §63-30291 (Income tax credit for investment in broadband equipment).With
this Order,we confirm that the installed equipment is “qualified broadband equipment”under
idaho Code §63-30291.
THE APPLICATION
Verizon states in the Application that it installed equipment associated with
CMDA2000 (Code Division Multiple Access)technologies to support [improved]voice and
broadband data.in addition to three other generations of ...cellular network technologies.”
Verizon affirms that its broadband network has data transmission rates between 300 Kbps and 3
Mbps for subscriber downloads and uploads,which exceeds the statutorily required minimum
rates of 200,000 bits per second to a subscriber and 125,000 bits per second from a subscriber.
Verizon states further that 100%of its Idaho subscribers have access to the broadband network.
Verizon claims that it invested $12,861,606.43 in qualifying broadband equipment in 2014.
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
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
ORDER NO.33407 1
subscriber.”Idaho Code §63-30291(3)(b).In addition,to be “qualified broadband equipment”
the equipment must be ‘primarily used to provide services in Idaho to Idaho public subscribers.”
See Idaho Code §63-30291(3)(b)(vii).Further,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 §63-30291(3)(b)(i).
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 Verizon’s Application under Idaho Code §63-30291 and Commission
Order No.28784.Based on its review,Staff believes that Verizon is a telecommunications
carrier 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 Verizon’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 Verizon’s Application and Staffs recommendation,we find that its
equipment is ‘qualified broadband equipment”eligible for the tax credit under Idaho Code §63-
30291.Verizon is a telecommunications carrier and the listed equipment (as presently
configured)is an integral part of Verizon’s broadband network and is necessary to the provision
of broadband service to Idaho customers.Accordingly,it is appropriate for the Commission to
issue an Order confirming that Verizon’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 Verizon’s Application for an Order confirming that
equipment it installed in 2014 is “qualified broadband equipment”is granted.
ORDER NO.33407
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 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
day of October 2015.
PA KJEL AN RESIDENT
tgL)
MARSHA H.SMITH,COMMISSIONER
V
KRIST E RAPER,COMM SSIONER
ATTEST:
JJel
ommission Secretary
O:GNR-T-15-O8hk
ORDER NO.33407 3