20200317Final_Order_No_34595.pdf

Office of the Secretary
Service Date
March 17,2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TEKFINITY,LLC'S )CASE NO.GNR-T-20-06
APPLICATION FOR A 2018 INVESTMENT )
TAX CREDIT FOR INSTALLING )QUALIFIEDBROADBAND EQUIPMENT )ORDER NO.34595
On January 28,2020,Tekfinity,LLC ("Tekfinity"or "Company")applied to the Idaho
Public Utilities Commission ("Commission")for an order confirming that equipment the
Company installed in 2018 is "qualified broadband equipment"under Idaho Code §63-3029I
(Income tax credit for investment in broadband equipment).With this Order,we confirm that the
installed equipment is "qualified broadband equipment"under Idaho Code §63-3029I.
THE APPLICATION
In the Application,Tekfinity states it provides fixed wireless broadband internet
services to its customers in southern Idaho.Application at 1.Tekfinity asserts its broadband
network has data transmission rates between 1 Mbps and 50 Mbps 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 avers that along with its related parties,the
Tek-Hut group,they provide service to approximately 2,500 customers in Idaho.Tekfinity claims
it invested approximately $898,142.25 in qualifying broadband equipment that was installed in
Idaho in 2018 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 confirming that the
installed equipment is "qualified broadband equipment"as defined in the statute.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 Idaho to Idaho public
subscribers."See Idaho Code §63-3029I(3)(b)(vii).Further,in "the case of a telecommunications
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carrier,such qualifyingequipment 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 taxpayer must include in the broadbandtax credit
application.When the taxpayer files the application,the Commission Staff ("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,then the Commission forwards it and the order to the Idaho
State Tax Commission.
STAFF REVIEW
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 Idaho Code §63-3029I(3)(b).Staff 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 FINDINGS
Having reviewed the Company's Application and Staff s recommendation,we find that
the Company's equipment identified in Case No.GNR-T-20-06 is "qualified broadband
equipment"eligible for the tax credit under Idaho Code §63-3029I.Accordingly,it is appropriate
for 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.
ORDER
IT IS HEREBY ORDERED that the Company's Application for an order confirming
that equipment the Company installed in 2018 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 may petition for
reconsideration within twenty-one(21)days of the service date of this Order with regard to any
The Commission issued Order No.28784 pursuant to Idaho Code §63-3029I(4),which empowers the Commission
to "issue procedural orders necessary to implement"the statute.
ORDER NO.34595 2
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 I
day of March 2020.
PAUL KJE LAl D R,PRESIDENT
KRI ÌÑE RAPER,OŸáMISSÏONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
L\Legal\TELEPHONE\GNR-T-20-06\GNRT2006final_jrh.docx
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