20180720Decision Memo.pdf

RE
DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMIVISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: I}ANIEL KLEIN
DATE: JULY 17,201E
GOLD STAR COMMUNICATIONS, LLC'S 2016 BROADBAND
EQUIPMENT TAX CREDIT; CASE NO. GOI-T-18-01.
BACKGROTIND
In 2001, House Bill377 was enacted authorizing income tax credit for thc installation of
qualiffing broadband infrastructure in ldaho. Idaho Code $ 63-30298(3XaXii). In particular,
Section 63-3029I allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipmeff is defined as "those network facilities capable of
transmitting signals at arate of at least 200,000 bits per seconds (bps) to a subscriber and at least
125,000 bps from a subscriber;' Idaho Code $ 63-329I(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." Idaho Code $ 63-30291(3)(bxi). 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 arld ldaho Code $ 63-3029I(4). Once the Commission as 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.
IDECISION MEMORANDUM ruLY 17,2018
THE APPLICATION
On July 2,2018, the Commission received an Application from Gold Star
Communications, LLC ("Gold Star" or "Cornpany"), seeking approval of the equiprnent for the
broadband tax credit installed during calendar year 2016. In the Application, Gold Star states
that it installed broadband equipment associated with Evolution Data Only/Long-Term Evolution
(EvDO/LTE) technology. Gold Star discloses that its broadband network has data transmission
rates of 1.2 to 13.8 Mbps upstream and 384 kbps to 21.6 Mbps downstream. These rates exceed
the minimum statutory speed requirements pursuant to ldaho Code 63-30291. 'lhe Company
estimates that more than 50Yo of its Idaho customers have access to ils broadband network within
its designated service areas. Gold Star invested approximately $98,929 in 2016 in qualifying
broadband equipment that it confirms is integral to the broadband network
STAFF REYIEW 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 $ 63-3029I(3)0). Staft 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 Ordcr confirming the equipment identified in
Case No. GOL-T-18-01 is qualified broadband equipment as defined in ldaho Code $
63-30291(3Xb) a"d forward it to the Idaho Tax Commission?
"j (
t/
Daniel Klein
Udmemos/gol-t-l E-01 2016 Gold Star Broadband Tax Credit dec memo
DECTSION MEMORANDUM -2-ruLY t7,2}t8
I
)/--'----I