20180727final_order_no_34120.pdf

Office of the Secretary
Service Date
July 27,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF GOLD STAR COMMUNICATIONS,LLC )CASE NO.GOL-T-18-01
FOR AN INVESTMENT TAX CREDIT FOR )QUALIFYING BROADBAND EQUIPMENT )ORDER NO.34120
INSTALLATION )
On July 2,2018,Gold Star Communications,LLC ("Company")applied to the Idaho
Public Utilities Commission ("Commission")for an Order confirmingthat equipment it installed
in 2016 is "qualified broadbandequipment"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 its Application,the Company stated that it invested $98,929.83 in qualifying
broadband equipment in 2016.Application at 2.The Company said it installed equipment
associated with Evolution Data Only/Long-TermEvolution (EVDO/LTE)technology.See Id at
1.Gold Star disclosed that its broadband network has data transmission rates of 1.2 to 13.8 Mbps
upstream and 384 kbps to 21.6 Mbps downstream.Id The Company further stated that
approximately 17%of its customers have subscribed to its broadband network within its
designated service areas.See Id.at 1.The Company estimates that more than 50%of its customers
have access to its broadband network within its designated service areas.Id
THE BROADBAND EQUIPMENTTAX CREDIT
Idaho Code §63-3029I allows a taxpayer to receive an income tax credit for installing
qualified broadband equipment during a calendar year.Before the taxpayer is eligible for the tax
credit,the taxpayer must first obtain a Commission Order confirmingthat 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 Kbps]to a subscriber and at least [125 Kbps]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).Moreover,in the case of a telecommunications carrier,"such
ORDER NO.34120 1
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 issued Order No.28784
to specify what information a taxpayer must include in a 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 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.Staff thus recommends 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 is "qualified broadband equipment"eligible for the tax credit under
Idaho Code §63-3029I.The Company is a telecommunications carrier.Further,the listed
equipment (as presently configured)is an integral part of the Company's broadband network and
is necessary to the provision of broadband service to Idaho customers.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 Gold Star Communications,LLC's Application for
an Order,confirming that equipment identified in Case No.GOL-T-18-01 installed in 2016 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.
ORDER NO.34120 2
THIS IS A FINAL ORDER.Any person interested in this order (or in issues finally
decided by this order)may petition for reconsiderationwithin 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 e .
day of July2018.
PAUL KJE L ER,PRESIDENT
KRIS E RAPER,COMMISSIONER
ERIC ANDERSON,COMMISlIONER
Diane M.Hanian
Commission Secretary
I:\LeganTelephone\GOL-T-18-01\GOLTIS01_ejorder
ORDER NO.34120 3