20170929final_order_no_33891.pdf

Office ofthe Secretary
Service Date
September 29,2017
BEFORE TUE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF CELLCO PARTNERSHIP AND )CASE NO.GNR-T-17-08
VERIZON WIRELESS LLC,OPERATING )
ENTITIES OF THE VERISON WIRELESS )ORDER NO.33891
BUSINESS DIVISION FOR AN )
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )
EQUIPMENT )
On September 19,2017,CelIco Partnership and Verizon Wireless,LLC,operating
entities of the Verizon Wireless business division (collectively “Verizon”or “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)(”Application”).
THE APPLICATION
In the Application,Verizon stated that it installed equipment associated with
“CDMA2000 (Code Division Multiple Access)technologies to support LTE [Sonet Light
Terminating Equipment]for 4G [4th Generation Mobile System]voice and broadband data,in
addition to three other generations of CDMA-based cellular network technologies.”Application
at 2.Verizon stated that its broadband network had data transmission rates between 300 Kbps
and 3Mbps for subscriber downloads and uploads,which exceeded the required rates of 200,000
bits per second to a subscriber and 125,000 bits per second from a subscriber.Id.The Company
asserted that 100%of its Idaho subscribers have access to its broadband network.Id.at 3.The
Company stated that in 2016 it invested approximately $11,827,712 in equipment that is integral
to its broadband network.Id.
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
ORDERNO.33891 1
at a rate of at least [200,000 bps]to a subscriber and at least [125,000 bps]from a subscriber.”
Idaho Code §63-30291(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 §63-30291(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 §63-30291 and
Commission Order No.28784.Based on its review,Staff believes that the Company is a
telecommunications carrier 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 Staff’s recommendation,we find
that the Company’s equipment is “qualified broadband equipment”eligible for the tax credit
under Idaho Code §63-30291.The Company is a telecommunications carrier 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.
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.33891
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.
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.
K STINE RAPER,CMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
O:GNRTI 708sc
ORDER NO.33891 3