HomeMy WebLinkAbout20200925Decision Memo.pdfDECISTON MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: DANIEL KLEIN
DATE: SEPTEMBER 23,2020
RE:THE 2019 BROADBAND EQUIPMENT TAX CREDIT APPLICATION
FOR TEKFINITY, LLC; CASE NO. GNR-T-20-13.
BACKGROUND
In 2001, House Bill377 was enacted authorizing income tax credit for the installatiorr of
qualiffing broadband infrastructure in ldaho. Idaho Code $ $4129P(3Xa)(ii). In particular,
Section 63-30291allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equiprnent is defined 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 installed by a
telecommunications carrier, it must also be "necessary to the provision of broadband services
and an integral part of a broadband network." Iclaho Code $ 63-30291(3XbXi). To be eligible
for the tax credit, the taxpayer must obtain from the Commission an Order confirming that the
installed equipment meets the statutory definition of qualified broadband equipment. Procedural
Order No. 28784 and ldaho Code $ 63-30291(4). Once the Commission has determined the
installed equipment is eligible for the broadband equipment tax credit, an order along with the
original Application is forwarded to the Idaho Tax Commission.
DECISION MEMORANDUM SEPTEMBER23,2O2O
THE APPLICATION
On August 24,2020, the Commission received an Application from Tekfinity, LLC
(collectively "Tekfinity" or "CompBny"), seeking approval of the equipment for the broadband
tax credit installed during calendar year 2019. In the Application, Tekfinity states that it
"provides a high-speed packet switched, carrier class, core network using state of the art
wireless, technology in order deliver high speed reliable Intemet services." Tekfinity discloses
that 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. The Company asserts that its
related parties service approximately 2500 customers in Idaho. Tekfinity invested approximately
$219,913.54 in 2019 in qualifoing broadband equipment that it confirms is integral to the
broadband network.
STAFF REVIEW 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 $ 63-30291(3Xb). Staff, therefore, 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 equipment identified in
Case No. GNR-T-20-13 is qualified broadband equipment as defined in ldaho Code
$ 63-30291(3Xb) and forward it to the Idaho Tax Commission?
Daniel Klein
Udmemos/GNR-T-20-l 3 dec memo
DECISION MEMORANDUM .|
-L-SEPTEMBER 23,2020