20190301final_order_no_34256.pdf

Office of the Secretary
Service Date
March 1,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.GNR-T-19-02
OF LEADER COMMUNICATIONS LLC FOR )AN INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )EQUIPMENT )ORDER NO.34256
On January 7,2019,Leader Communications LLC ("Company")applied to the Idaho
Public Utilities Commission ("Commission")for an Order confirmingthat equipment it installed
in 2018 is "qualified broadband equipment"under Idaho Code §63-3029I ("Application").An
Amendment to the Application was filed February 7,2019.With this Order,we confirm the
installed equipment is "qualified broadband equipment"under Idaho Code §63-3029I.
THE APPLICATION
In its Application,the Company stated 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 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.The Company asserts that 100%of its Idaho subscribers have access to
the broadband network.Leader invested approximately $179,221.56 in 2018 in qualifying
broadbandequipment that it confirms is integral to the broadband network.
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 confirmingthat the
installed equipment is "qualified broadband equipment"as defined in the statute.Idaho Code §
63-3029I(4).That statute defines "qualifiedbroadband equipment"as equipment that 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).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,
ORDER NO.34256 1
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 §63-3029I and
Commission Order No.28784.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 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 wireless carrier and the listed equipment is an integral
part of the Company's broadbandnetwork 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 broadbandequipment."The Commission
makes no findings regarding the costs of the installed broadbandequipment or other expenses.
I The Commission issued Order No.28784 pursuant to Idaho Code §63-3029I(4),which provides the Commission
authority to "issue procedural orders necessary to implement"the income tax credit for investment in broadband
equipment.
ORDER NO.34256 2
ORDER
IT IS HEREBY ORDERED that the Company's Application seeking an Order
confirmingthat it has installed qualified broadbandequipment in Idaho during the 2018 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 March 2019.
PAUL KJ LAND ,PRESIDENT
KIË INE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
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ORDER NO.34256 3