20171117Decision Memo.pdf

RE
DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DAIYIEL KLEIN
NOVEIT{BER 16,2017DATE:
LEADER COMMTINICATIONS LLC APPLICATION FOR THE
BROADBAND EQTTIPMENT TAX CREDIT rOR YEARS 2014-2016;
CASE NO. GNR-T.l7.TI,
BACKGROUNI)
In 2001, House Bill 377 was enacted authorizing income ta:< credit for the installation of
qualifying broadband infrastnrcture in ldaho. Idaho Code $ 63-30298(3XaXii). In particular,
Section 63-30291allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is defined as "those network faciiities capable of
transmitting signals at a rate of at least 200,000 bits per seconds (bps) to a subscriber and at least
125,000 bps from a subscriber;' Idaho Code $ 63-329(3)0). If the equipment is installed by a
telecommunications carrier, it must also be "necessary to the provision of broadband services
and an integral part of a broadband network." Idaho Code $ 63-30291(3)OXi). To be eligible
for the tax credit, the taxpayer rnust obtain from the Commission an Order confirming that the
installed equipment meets the statutory definition of qualified broadband equipment. Procedural
Order No. 28784 and ldaho Code $ 63-30291(4). Once the Commission as deterrrined the
installed equipment is eligible for the broadband equipment tax credit, an order along with the
original Application is forwarded to the Idaho Tax Commission.
DECISION MEMORANDUM November 16,20171
THE APPLICATION
On Novcmber 6,2A1.7, the Commission received an Application from Leader
Cornmunications LLC ("Leader" or "Companf), seeking approval of the equipment for the
broadband tax credit installed during calendar year20l4,20l5,and 2016. An Arnendment to the
Application was filed on November 13, 2017. In the Application, Leader states that it installed
equipment associated with "delivering broadband internet to the residents and businesses of
Benewah, Latah, and Kootenai counties via wireless microwave and some with fiber optics."
Leader discloses that its broadband network has data transmission rates between I and 2Mbps for
subscriber downloads and uploads, which exceeds the required rates of 200,000 bits per second
to a subscriber and 125,000 bits per second from a subscriber. The Company asserts that rcO%
of its Idaho subscribers have access to the broadband network. Leader invested approximately
$37,792 in 2014, approximately $60,006 in 1015 and approximately $82,383 in 2015 in
quali$ing broadband equipment that it confirms is integral to the broadband network
STAFF REYIEW AIYD RECOMMENDATION
Staff has reviewed the list of proposed broadband equipment and believes the identified
equipment qualifies for the investment tax credit pursruurt to Procedural Order No. 28784 and
Idaho Code $ 63-30291(3)0). Sta{f, therefore, recommends that the Commission issue an Order
confirming the equipment is qualified broadband equipment and forward the approving Order
along with a copy of the original Application to the tdaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirming the equipment identified in
Case No. GNR-T-I7-11 is qualified broadband equipment as defined in ldaho Code $
63-3029I(3Xb) and forward it to the Idaho Tax Commission?
Daniel Klein
Udmcrnos/ gnr-t-!7-t I 2016 Lcadcr Communications LLC Broadband Tax Credit
DECISION MEMORANDUM 1L November 16,2017
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