20181105final_order_no_34183.pdf

Office of the Secretary
Service Date
November 5,2018
BEFORE THE IDAHO PL81 IC 1 TIIÏTIES COVIMISSION
IN THE MATTER OF THE APPLICATION )
OF COMMNET CELLULAR INC.AND )CASE NO.GNR-T-18-08
VERIZON WIRELESS LLC,OPERATING )
ENTITIES OF THE VERIZON WIRELESS )ORDER NO.34183
BUSINESS DIVISION FOR AN )
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )EQUIPMENT )
On October 9,2018,CommNet Cellular,Inc.,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 2017 is "qualified broadband equipment"under Idaho Code §63-3029I
("Application").With this Order,the Commission confirms that the installed equipment is
"qualified broadband equipment"under Idaho Code §63-30291.
THE APPLICATION
In the Application,the Company stated that in 2017 it installed $4,556,673.98 of
qualifying broadband equipment associated with technologies to support LTE (Sonet Light
Terminating Equipment)for 4G (4th Generation Mobile System)voice and broadband data,in
addition to cellular network technologies.Application at 2.The Company stated that its
broadband network has data transmission rates between 300 kbps and 3 Mbps for subscriber
downloads and uploads,which exceeds the required rate(s)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 The Company stated that the
above described investment represents equipment that is integral to its broadbandnetwork.Id at
1.
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 certifyingthat the
installed equipment is "qualified broadband equipment"as defined in the statute.Idaho Code §
63-3029I(4).That statute defines "qualified broadband equipment"as equipment that qualifies for
ORDER NO.34183 1
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).Further,in "the case of a telecommunications carrier,such quahD my
equipment shall be necessary to the provision of broadband service and an integral part of a
broadband network."Idaho Code §63-3029I(3)(b)(i).
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.1 That Order specifies the information the taxpayermust 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 defmition 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 resulting Order to the Idaho State Tax
Commission.
STAFF REVIEW
Staff reviewed the Company's Application under Idaho Code §63-3029I 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 confirmingthat 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 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 appropriatefor 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.
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 §63-3029L
ORDER NO.34183 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 2017 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 §§61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of November 2018.
PA KJELL NI6ER,PRESIDENT
KRISTINE RAPER,OMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATT
Diane M.Hanian
Commission Secretary
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ORDER NO.34183 3