HomeMy WebLinkAbout20201022Final_Order_No_34821.pdfORDER NO. 34821 1
Office of the Secretary
Service Date
October 22, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF RANDOM
INVESTMENTS, LLC’S APPLICATION FOR
A 2019 INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
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CASE NO. GNR-T-20-16
ORDER NO. 34821
On September 8, 2020, Random Investments, LLC (“Company”) applied to the Idaho
Public Utilities Commission (“Commission”) for an order confirming that equipment it installed
in 2019 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, the Company states it is a real estate holding company that owns
vertical assets (towers) it leases to related parties, Tekfinity, LLC and Tek-Hut, Inc., who provide
fixed and wireless broadband internet to customers in Southern Idaho. Application at 1. The
Company asserts that its related parties service approximately 2,500 customers in Idaho. The
Company asserts it invested approximately $16,776.23 in 2019 in qualifying broadband equipment
that it confirms is integral to the broadband network.
THE BROADBAND EQUIPMENT TAX 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
carrier, such qualifying equipment shall be necessary to the provision of broadband service and an
integral part of a broadband network.” Idaho Code § 63-3029I(3)(b)(i).
ORDER NO. 34821 2
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 broadband tax credit
application. When the taxpayer files the application, the Commission 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-20-16 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.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for an order confirming
that equipment it installed in 2019 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 (or in issues finally
decided by this order) may petition for reconsideration within twenty-one (21) days of the service
date of this order regarding any 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.
1 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. 34821 3
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 22nd
day of October 2020.
PAUL KJELLANDER, PRESIDENT
KRISTINE RAPER, COMMISSIONER
ERIC ANDERSON, COMMISSIONER
ATTEST:
Jan Noriyuki
Commission Secretary
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