20160908final_order_no_33588.pdf

Office of the Secretary
Service Date
September 8, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF IDAHO 6-CLARK LIMITED ) CASE NO. GNR-T-16-09
PARTNERSHIP, AN OPERATING ENTITY )
OF THE VERIZON WIRELESS BUSINESS )
DIVISION, FOR A 2015 INVESTMENT TAX )
CREDIT FOR INSTALLING QUALIFYING ) ORDER NO. 33588
_B_R_O_A_D_B_A_N_D_E~Q~U_IP_M_E_N_T ______ )
On August 5, 2016, Idaho 6-Clark Limited Partnership, an operating entity of the
Verizon Wireless business division (the "Company"), applied to the Idaho Public Utilities
Commission ("Commission") for an Order confirming that certain equipment it installed in 2015
is "qualified broadband equipment" under Idaho Code § 63-3029I (Income tax credit for
investment in broadband equipment). With this Order, we confirm that the installed equipment
is "qualified broadband equipment" under Idaho Code § 63-3029!.
THE APPLICATION
In its Application, the Company states it invested $4,856,883.33 in qualifying
broadband equipment in 2015. The Company states it installed equipment associated with
"CMDA2000 (Code Division Multiple Access) technology to support LTE [Sonet Light
Terminating Equipment] for 4G [41h Generation Mobile System] voice and broadband data, in
addition to three other generations of CDMA-based cellular network technologies .... " See
Application at 2. The Company asserts that its broadband network has data transmission rates
between 300,000 bits per second ("bps") and 3,000,000 bps for subscriber downloads and
uploads. Id. The Company further asserts that 100% of the Company's total Idaho subscribers
have access to its Idaho broadband network. Id. at 3.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code § 63-3029I 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
§ 63-3029I(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
ORDER NO. 33588 1
at a rate of at least [200,000 bps] to a subscriber and at least [125,000 bps] from a subscriber."
Idaho Code § 63-3029I(3)(b). 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 § 63-3029I(3)(b )(i).
In furtherance of its statutory responsibility, the Commission has issued Order No.
28784.1 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 Application under Idaho Code § 63-3029I. Based on
its review, Staff believes that the Company 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: (I) issue an Order confirming that the
Company'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 the Company's Application and Staff's recommendation, we find
that the Company's equipment is "qualified broadband equipment" eligible for the tax credit
under Idaho Code § 63-3029I. The Company is a telecommunications carrier. Further, the listed
equipment (as presently configured) is an integral part of the Company'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 the Company's equipment is
"qualified broadband equipment." The Commission makes no findings regarding the costs of the
installed broadband equipment or other expenses.
1 The Commission issued Order No. 28784 pursuant to Idaho Code § 63-30291(4), which empowers the
Commission to "issue procedural orders necessary to implement" Idaho Code§ 63-3029(4).
ORDER NO. 33588 2
ORDER
IT IS HEREBY ORDERED that the Company's Application for an Order confirming
that certain equipment it installed in 2015 is "qualified broadband equipment" is granted.
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 September 2016.
ATTEST:
C'.ommission Secretary
O:GNR-T-16-09 _sc
ORDER NO. 33588
ERIC ANDERSON, COMMISSIONER
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