20190215Decision Memo.pdf

RT
DECISTON ME,MORANDUM
TO:COMMISSIONER KJELLANDtrR
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
I,EGAL
WORKII\G FILE
FROM:DANIEL KLtrIN
ITIIBRUARY 14,20I9DATE:
THf, 2(}I8 BROAI}BAND EQUIPMENT TAX CREDIT APPLICATION
FOR LEADER COMMUNICATIONS, LLC; CASE NO. GNR-"1-19-$2.
BACKGROUNI)
In 2001, House Bill377 was enacted authorizing income tax credit for the installation of
qualiffing broadband infrastructure in Idaho. Idaho Code $ $-3}298(3Xa)(ii). In particular,
Section 63-30291 allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is defincd as "those network facilities 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 $ 63-3291(3)(b). If the equipment is insta^lled by a
telecomrnunications carrier, it must also be "necessary (o the provision of broadband servioes
and an integral part of a broadbiurci network," ldaho Code $ 63-3029(3)(bX0. To be eligible
{br t}e tax credit, the taxpayer must obtain from the Commission an Order confirming that the
installed equipment mects the statutory definition of qualified broadband equipment. Procedural
Order No. 28784 and ldaho Code $ 63-30291(4\ Once the Commission as determined the
installed equipment is eligible for the broadband equipmcnt tax ucdit, an order along with the
original Application is tbrwarded to the Idaho Tax Commission.
1DECISION MEMORANDUM FEBRUARY 14, 2OI9
STAT'F REVIBW AND RECOMMENDATION
Staff has reviewed and audited the list of proposed broadband equipment and believes the
identified equipment qualifies for the investment tax credit pursuant to Procedural Order
No. 28784 and ldaho Code $ 63-3029I(3)(b). Staft, therefr:re, 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 Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirming the equiprnent identified in
Case No. GNR-T-I9-02 is qualified broadband equiprnent as defined in ldaho Code
$ 63-3029I(3)(b) and forward it to the Idaho Tax Commission?
DanielKlein
Udmcrnos/Gl{R-T-19-02 2018 Leader Communications LLC Broadband Tax Credit
)
DECISION MEMORANDUM .1 FEBRUARY 14,2019
THE APPLICATION
On January 7,2A19, the Commission received an Application from Leader
Communications LLC ("Leader" or "Company"), seeking approval of the equipment for the
broadband tax credit installed during calendar year 2018. An Amendment to the Application
was filed on February 7,2419. In the Application, Leader states that it installed equipment
associated with "delivering broadband intemet to the residents and businesses of Benewah,
Latah, and Kootenai counties via wireless microwave and some with fiber optics." Leader
disoloses that its broadband network has data transmission rates between I and 2Mbps fr:r
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%o
of its Idaho subscribers have access to the broadband network. Leader invested approximately
5179,221.56 in 2018 in qualifying broadband equipment that it confirms is integral to the
broadband network.
4
( J -'-