20190222final_order_no_34247.pdf

Office of the Secretary
Service Date
February 22,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF LEADER )CASE NO.GNR-T-18-04
COMMUNICATIONS,LLC APPLICATION )FOR AN INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER NO.34247
EQUIPMENT )
On March 19,2018,Leader Communications,LLC ("Leader"or the "Company")
applied to the Idaho Public Utilities Commission ("Commission")for an Order confirming that
equipment it installed in 2017 is "qualified broadband equipment"under Idaho Code §63-3029I
(Income tax credit for investment in broadband equipment).Supplements to the Application
were filed on January 7,and February 7,2019.With this Order,we confirm that the installed
equipment is "qualified broadbandequipment"under Idaho Code §63-3029I.
THE APPLICATION
In its 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 fiber optics.Application at 1.Leader stated that its broadband network has
data transmission rates between 1 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.Id.The Company asserted that 100%of its Idaho subscribers have access to
its broadband network.In 2017 Leader invested approximately $137,836.82 in what it
considered to be qualifying broadband equipment,integral to its broadband network.See
January 7,2019 Supplementalto the Application at 2.
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.See 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
subscriber"(Idaho Code §63-3029I(3)(b));and (2)is "primarily used to provide services in
ORDER NO.34247 1
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 issued Order No.
28784.1 That Order specifies the information a taxpayer must include in the broadband tax credit
application.When the taxpayer files the application,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,it forwards it and the resulting Order to the Idaho State Tax
Commission.
STAFF REVIEW
Staff reviewed the Company's Application under Idaho Code §63-3029I and Order
No.28784.Based on its review,Staff believes 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 §63-3029I.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.
1 The Commission issued Order No.28784 pursuant to Idaho Code §63-3029I(4),which empowers the
Commission to "issue procedural orders necessary to implement"Idaho Code §63-30291(4).
ORDER NO.34247 2
ORDER
IT IS HEREBY ORDERED that the Company's Application for an Order confirming
that equipment identified in Case No.GNR-T-18-04 installed in calendar year 2017 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 21
day of February 2019.
PAUL KJELLA E ,PRESIDENT
KRIETINE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
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ORDER NO.34247 3