20171211final_order_no_33945.pdf

Office of the Secretary
Service Date
December 11,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF LEADER )CASE NO.GNR-T-17-11
COMMUNICATIONS,LLC APPLICATION )FOR AN INVESTMENT TAX CREDIT FOR )INSTALLING QUALIFYING BROADBAND )ORDER NO.33945EQUIPMENT
On November 6,2017,Leader Communications,LLC (the "Company")applied to the
Idaho Public Utilities Commission ("Commission")for an Order confirming that equipment it
installed in 2014,2015,and 2016 is "qualified broadband equipment"under Idaho Code §63-
3029I (Income tax credit for investment in broadbandequipment).With this Order,we confirm
that the installed equipment is "qualified broadbandequipment"under Idaho Code §63-30291.
THE APPLICATION
In its Application,the Company stated that it invested approximately $37,792 in 2014,
approximately $60,006 in 2015,and approximately $82,383 in 2016,in qualifying broadband
equipment.See Amendment to Application at 26.The Company stated it installed equipment
related to the provision of broadband Internet "via wireless microwave and some ...fiber
optics"in Benewah,Latah and Kootenai counties.Application at 1.The Company claimed data
transmission "from 2.0 mbps download and 1 mbps upload all the way up to 500 mbps full
duplex in areas"which exceeds the required rates of 200,000 bits per second to a subscriber and
125,000 bits per second from a subscriber.Id.The Company further asserted that 100%of its
Idaho subscribers have access to its broadband network and that the equipment it installed in
2014-2016,as detailed in its Application and Amendments,is qualifying broadband equipment
integral to its broadbandnetwork.Id.at 3.
THE BROADBAND EQUIPMENTTAX 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).The statute defines "qualified broadband equipment"as equipment that:(1)
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
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subscriber"(Idaho Code §63-3029I(3)(b));and (2)is "primarily used to provide services in
Idaho to Idaho public subscribers."See Idaho Code §63-3029I(3)(b)(vii).Further,in "the case
of a wireless carrier,such qualifying equipment is only that equipment that extends from a
transmitting/receiving antenna,including such antenna,which transmits and receives signals to
or from multiplesubscribers to a transmitting/receiving antenna on the outside of the structure in
which the subscriber is located."Idaho Code §63-3029I(3)(b)(iv).
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
ultimatelyapproves 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.Based on its
review,Staff believes that the Company is a wireless 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 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 §63-3029L The Company is a wireless carrier and the listed equipment extends
from a transmitting/receiving antenna that transmits and receives signals to or from subscribers
to an outside transmitting/receiving antenna.Accordingly,it is appropriate for the Commission
to issue an Order confirmingthat 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 §63-3029I(4),which empowers the
Commission to "issue procedural orders necessary to implement"IdahoCode §63-3029(4).
ORDER NO.33945 2
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 2014,2015,
and 2016 calendar year(s)are 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 December 2017.
PA JELLÁNDER,PRESIDENT
KR INE RAPER,$OMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
I:\Legal\LORDERS\GNRTl7tl scl.doc
ORDER NO.33945 3