20171003Decision Memo.pdf

RE:
DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: CAROLEE HALL
DATE: OCTOBER 2,2017
THE 2016 BROADBAND EQUIPMENT TAX CREDIT APPLICATION
FOR INLAND CELLULAR, LLC; CASE NO. INC-T-17-01.
BACKCROUND
In 2001, House Bill 377 was enacted authorizing income tax oedit for the installation of
qualifying broadband infrastructure in ldaho. ldaho Code $ 63-30298(3XaXii). In particular,
Section 63-30291 allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment 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 lcast
125,000 bps from a subscriber;' ldaho Cade $ 63-3291(3Xb). 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(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 qualilied broadband equipment. Procedural
Order No. 28784 and ldaho Code $ 63-30291(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 ldaho Tax Cornmission.
DECISION MEMORANDUM -t-ocToBER ?,24t7
THE APPLICATION
On September 21,2017, thc Commission received an Application from Inland Cellular,
LLC. (collectively "lntand" or "Company"), seeking approval of the equipment for the
broadband tax credit installed during calendar year 2016. In the Application, Inland states that it
installed equipment associated with teehnologies to support LTE [Sonet Light Terminating
Equipmentl for 4G [4th Generation Mobile SystemJ voice and broadband dat+ in addition to
cellular network technologies. Inland discloses that its broadband network has data transmission
rates between l0 Mbps and 3Mbps lor 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 approximately 96od of its ldaho subscribers have access to
the broadband network. During 2016, the Company invested approximately $3 I 3,71 8 in
quali$ing broadband equipment that it confirms is integral to the broadband network.
STAFF REVIE\il AND RECOMMENDATION
Staffhas reviewed the list of proposed broadband equipment and believes the identifred
equipment qualifies for the investment tax credit pursuant to Procedural Order No. 28784 and
Idaho Code $ 63-30291(3Xb). Stafi 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 ldaho Ta:r Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirming the equipment identified in
Case No. INC-T-17-01 is qualified broadband equipment as defined in ldaho Code $
63-3029(3)(b) and forward it to the Idaho Tax Commission?
U;'Dccision Memo9Broadbsnd Tax CrcdisjlNc-T-17-01 lnland Ccllular, LLC., BB Tax Crcdit
DECISION MEMORANDUM .,ocToBER ?,20t7