20230120Final_Order_No_35669.pdf

ORDER NO. 35669 1
Office of the Secretary
Service Date
January 20, 2023
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF CABLE ONE, INC.’S
APPLICATION FOR AN INVESTMENT TAX
CREDIT FOR INSTALLING QUALIFYING
BROADBAND EQUIPMENT
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CASE NO. GNR-T-22-05

ORDER NO. 35669

On October 28, 2022, Cable One, Inc., (“Company”) applied to the Idaho Public Utilities
Commission (“Commission”) for an order confirming that equipment it installed in 20211 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
The Company’s Application (“Application”) claims the Company made certain
investments that qualify for a broadband tax credit. Application at 1; see Idaho Code § 63-
3029I(3)(b). The Company states that the installed equipment is necessary for providing broadband
services, and that the equipment meets the requirements of Idaho Code § 63-3029I. Application at
1. The Company included a detailed description of the equipment in its Application.
The Company stated that its broadband network data transmission rate offered to customers
is between 3 megabits per second (“Mbps”) and 200 Mbps. Id. The Company estimated that it
could provide high-speed internet to 95% of its potential customers within its designated service
area, and that 99.9% of those customers with the Company have access to its broadband network.
Id. As of 2021, the total number of customers with the potential to be high-speed internet
subscribers was 516,197. Id. The Company represented that, in 2021, it invested $28,495,267 in
qualifying broadband equipment which qualifies it for a $854,858 tax credit based on the
investment. Application, Exhibit B.
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

1 The cover page of the Company’s Application states that the requested tax credit is for 2020. However, the rest of
the Application consistently makes clear that the Company is requesting the tax credit for 2021.
ORDER NO. 35669 2
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 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 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).
In furtherance of its statutory responsibility, the Commission issued Order No. 28784.2
That Order specified the information the taxpayer must include in the broadband tax credit
application. In 2022, in Case No. GNR-T-21-10, Order No. 35297, the Commission modified the
informational requirements set forth by Order No. 28784. 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 reviewed the Company’s Application under Idaho Code § 63-3029I. Based on its
review, Staff believes that the Company is a telecommunications carrier and that the listed
equipment meets the statutory criteria and is “qualified broadband equipment” that is eligible for
the tax credit. Id. Staff thus recommended the Commission: (1) issue an order confirming that the
Company’s equipment is “qualified broadband equipment,” and (2) forward copies of the
Application and order to the Idaho State 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-22-05 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

2 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. 35669 3
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 it installed in 2021 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 with regard to 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.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 20th day of
January 2023.

______________________________________
ERIC ANDERSON, PRESIDENT

_______________________________________
JOHN CHATBURN, COMMISSIONER

_______________________________________
JOHN R. HAMMOND, JR., COMMISSIONER

ATTEST:

___________________________
Jan Noriyuki
Commission Secretary

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