20171012final_order_no_33913.pdf

Office ofthe Secretary
Service Date
October 12,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF INLAND CELLULAR,LLC,FOR AN )CASE NO.INC-T-17-O1
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER NO.33913
EQUIPMENT )
On September 21,2017,Inland Cellular,LLC (the “Company”)applied to the Idaho
Public Utilities Commission (“Commission”)for an Order certifying that equipment it installed
in 2016 is “qualified broadband equipment”under Idaho Code §63-30291 (Income tax credit for
investment in broadband equipment).
THE APPLICATION
In its Application,the Company stated that it invested approximately $313,718 in
qualifying broadband equipment in 2016.Application at 8.The Company states it installed
equipment associated with technologies to support LTE [Sonet Light Terminating Equipment]
for 4G [4th Generation Mobile System]voice and broadband data,in addition to cellular network
technologies.Id.at 2.The Company claimed data transmission rates between 1-Mbps and 3
Mbps for 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.Id.The Company
further asserted that approximately 96%of its Idaho subscribers have access to its broadband
network and that the equipment it installed in 2016,as detailed in its Application,is qualifying
broadband equipment integral to its broadband network.Id.at 1 and 9.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §63-3 0291 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 certifying that the
installed equipment is “qualified broadband equipment”as defined in the statute.Idaho Code §
63-30291(4).That 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).Moreover,in “the case of a telecommunications carrier,such
ORDER NO.33913
qualifying equipment shall be necessary to the provision of broadband service and an integral
part of a broadband network.”Idaho Code §63-30291(3)(b)(i).
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.’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 reviewed the Company’s Application under Idaho Code §63-30291 and
Commission Order No.28784.Based on its review,Staff believes that the Company is a
telecommunications carrier and that the listed equipment meets the relevant statutory criteria and
is qualified broadband equipment”that is eligible for the tax credit.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 is “qualified broadband equipment”eligible for the tax credit
under Idaho Code §63-30291.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 certifying 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.
The Commission issued Order No.28784 pursuant to Idaho Code §63-30291(4),which empowers the
Commission to “issue procedural orders necessary to implement”Idaho Code §63-3029(4).
ORDERNO.33913 2
ORDER
IT IS HEREBY ORDERED that the Company’s Application seeking an Order
confirming that it has installed qualified broadband equipment in Idaho during the 2016 calendar
year 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 §6 1-626 and 62-6 19.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /
day of October 2017.
PAUL KJELLANDER,PRESIDENT
KRISTINE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
/J__
/
Diane M.Hanian
Commission Secretary
I :\Legal\LORDERS\INcT]701_sc I .doc
ORDER NO.33913 3