20170914final_order_no_33881.pdf

Office ofthe Secretary
Service Date
September 14.2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CABLE ONE,INC.FOR AN )CASE NO.GNR-T-17-07
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER NO.33881
EQUIPMENT
_______________________
)
On August 28,2017,Cable One.Inc.(the “Company”)applied to the Idaho Public
Utilities Commission (“Commission”)for an Order certifying that equipment it installed in 2016
is “qualified broadband equipment”under Idaho Code §63-30291 (Income tax credit for
investment in broadband equipment).
THE APPLICATION
In its Application,the Company stated it invested $8.4 million in qualifying
broadband equipment in 2016.The Company stated that it installed equipment associated with
the Hybrid Coax Network (“HFC”)using fiber optic and coaxial cable facilities with
transmission rates of up to 200 Mbps.The Company stated that it installed the broadband
equipment in the Twin Falls.Lewiston,Pocatello,Idaho Falls.Boise,and West Valley areas,and
that 99.9%of its customers have access to the its broadband network.See Application at 2.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §63-30291 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 certifying 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).In addition,qualified broadband equipment must be “primarily
used to provide services in Idaho to public subscribers.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-
3029l(3)(b)(iii).
ORDER NO.33881 1
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 §63-30291 and
Commission Order No.28784.Based on its review,Staff believes that the Company is a cable
system operator and that the listed equipment meets the relevant 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 Application and Order to the Idaho State
Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Application and Staffs recommendation,we find
that the Company’s equipment is “qualified broadband equipment”eligible for the tax credit
under Idaho Code §63-3 0291.The Company is a cable system operator and the listed equipment
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.
ORDER
IT IS HEREBY ORDERED that the Company’s Application seeking an Order
confirming that it has installed qualified broadband equipment in Idaho during the 2016 calendar
year is granted.
The Commission issued Order No.28784 pursuant to Idaho Code §63-3O29I4).which empowers the
Commission to “issue procedural orders necessary to implement”Idaho Code §63-3029(4).
ORDER NO.33881
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 §6 1-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2017.
PAUL K LLAND ,PRESIDENT
KRIST E RAPER,COM SSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
O:GNR-T-1 7-07_sc
ORDER NO.33881