20191227Decision Memo.pdf

RE
DECISION MEMORANDUM
'I'O:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: DANIIL KLIIN
DATE: DECEMBER23,2019
THE 2018 BROADBAND EQUIPMENT TAX CREDTI AppLTCATTON
POR IDAHO 6.CLARK LIMITED PARTNERSHIP AN OPERATING
ENTII'Y OF THE VERIZON wIRELESS BUSINESS DIVISION; CASE
NO. GNR-'I'-r9-r0.
BACKGROUND
In 2001, House Bill 377 was enacted authorizing income lax credit for the installation of
qualilying broadband infrastructure in Idaho. ldaho C'ode $ 63-30298(3)(a)(ii). ln particular,
Section 63-30291 allows a taxpayer lo receive an investment 1ax credit lbr eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is dcllned 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." ldaho L'odc 163-3291(3)(b). If the equipment is installed by a
lelecommunications carrier, it must also be "necessary to the provision of broadband sen'ices
and an integral parl ofa broadband netr.vork." ldaho ('ode $ 63-30291(3 )(bxi). To be eligible
for 1he tax credit. the taxpayer must obtain from the Commission an Order confirming that the
installed equiprnent meets the slatutory del'inition ofqualified broadband equipment. Procedural
Order No. 28784 and ldoho L'ode S 63-30291(4), Once the Commission as determined the
installed equipment is eligible tbr the broadband equipment tax credit, an ordcr along wilh the
original Application is forwarded to the Idaho l'ax Commission.
DEC]ISION MEMORANDLIM DI]CEMBER 23.2019
THE APPLICATION
Orr October 15,2019. the Comniission received an Application from ldaho 6-Clark
Limited Partnership an operating entity of the Verizon Wireless business division (collectively
"Verizon" or "Company"), seeking approval oflhe equipmenl for the broadband tax credit
installed during calendar year 2018. In the Application, Verizon states that it installed equipment
associated with "CDMA2000 (Code Division Multiple Access) technologies to support LTE
ISonet Light Terminating Equipment] for 4G [4'r' Generation Mobile System] voice and
broadband data, in addition to three other generations of CDMA-based cellular nelwork
technologies." Verizon discloses that its broadband network has data transmission rates between
300 Kbps and 3 Mbps for subscriber downloads and uploads. rvhich cxceeds the required rates of
200,000 bits per second to a subscriber and 125,000 bits per second from a subscriber. Thc
Company asserts that 100% of its Idaho subscribers have access to the broadband netrvork.
Verizon invested approxinrately $2,824.138 in 2018 in qualilying broadband equipment thal it
confirms is integral to the broadband network
STAFF REVIEW AND RECOMMENDATION
Stafl has reviewed and audited lhe list ofproposed broadband equipment and believes the
identified equipment qualifies for the investment tax credit pursuant to Procedural Order No.
28784 and ldcrho Code $ 63-30291(3Xb). StafI, therelbre, recommends that the Commission
issue an Order confirming the equipment is qualified broadband equipment and fbrward the
approving Order along with a copy ofthe original Application to the Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirming thc cquipmcnt idcntificd in
Case No. GNR-T-19-10 is qualified broadband equipment as defined in ldaho (-ode g
63-3029(3)(b) and forw'ard it to the Idaho Tax Commission?
Udmcmos/Gl,iR-T.19- l0 2018 Vcrizon Broadband In\ ('rcdil
DECI SI ON ]VI TJMORAN DI]M -') -
Daniel Klcin
DICEMI]tiR 23,2019
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