20200306Decision Memo.pdf

RD
DECISION MEMORANDUM
't'o:COMMISSIONER KJELLAN DER
COMMISSIONI,R RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKTNG FILE
FROM: DANIEL KLEIN
DATE: MARCH 5,2020
THE 2OI8 I}ROADBAND EQUTPNIENT TAX CREDIT APPLICATTON
FOR TBKFINITY, LLC; CAS8 NO. GNR-'f-20-06.
BACKGROUND
ln 2001, I-louse Bill377 u,as cnacted authorizing inconre tax credit fbr the installation of
quali$,ing broadband intrastruclure in ldaho. [cluho C'oclc $ 63-30298(3XaXii). In parricular,
Section 63-30291 allorvs a taxpayer to receive an investment tax crcdit lbr cligible broadband
cquipment installed during a calendar 1,g6p.
Qualified broadband equipntent is defined as "those netr.r,ork t'acilities capable of
transmitting signals at a rate of at least 200,000 bits per seconds (trps) to a subscriber and ar Ieast
125.000 bps tiom a subscriber." ldaho Cirrlc $ 63-3291(3Xb). tl'theequipnrent is installed by a
teleconrmunications carrier, it must also be "necessary to the provision of broadband scrvices
and an intcgral part of a broadband netrvork." Itluho C'ode $ 63-30291(3)(bxi). 'l'o be eligible
Itrr the tax credit, the laxpayer must obtain lionr thc Commission an Order confinning that the
installed equipment meets the statutory deflnition of qualilied broadband equiprnent. Procedural
Order No. 28784 and ldaho ('orie $ 63-302q1$). Once the Cornmission as detennined the
installed ecluipment is eligible lbr the broadband equipment tax credit. an order along rvith the
origirral Application is tbrwarded to the Idaho l-ax Cr:mmission.
DI]CISION MEMORANDLIM MAITCH 5,2020
THE APPLICATION
On January 28,2020. the Conrmission received an Application fiorn l'ekfinity, LLC
(collectivelv ''Tekfinity" or "Company"), seeking approval of thc equipmcnt tbr the broadband
tax credit installed during calendar year 2018. In the Application. Tekfinity states that it
"provides wired dark and Iit ftber and wireless broadband intenret to customers in Southern
Idaho." Teklinity discloses that its broadband netrvork has data transmission rates betwecn I
Mbps and 50 Mbps fbr subscriber dorvnloads and uploads, rvhich excceds the required rates of
200,000 bits per second to a subscribcr and I 25.000 bits per second fronr a subscriber. J-he
Company asserts that its related parties service approximately 2500 customers in Idaho.
1'ekfinity invested approximately $898,147.25 in 201 8 in qualifying broadband equipment that it
confirrns is integral to thc broadband netrvork.
STAFT REVIEW AND RE,COMMENDATION
Stalf has reviewed arrd audited the list o1'proposed broadband equipment and believes
thc identitiecl equipment qualities lbr the investment tax credit pursuant to Procedural Order
No. 28784 and ldaho Code $ 63-30291(3)(b). Stafl, therefbre, recommends that the Commission
issue an Order conlirming the equipment is qualified broadband equipment and tbrw,ard the
approving Orcler along with a cop.y of the original Application to the Idahr:'l'ax Commission.
COMMTSSION DECISION
I)oes the Commission wish to issue an Order conlirming the equiprnent identitied in
Case No. GNR-'[-20-06 is qualified broadband equiprnent as det'irred in ldaho Code
$ 63-30291(3Xb) and fbrward it to the ldaho Tax Comrnission?
l
Daniel Klein
l.lrjnrcnroslCN ll-"1'-20-06 20 I 8 Tek fi n i tv Broadhand ]'ax Crcd it
DECISION MEMORANDUIVf 2 MARCH 5,2024