20180511Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER AI\IDERSON
COMIVISSION SECRETARY
LEGAL
WORKING FILE
FROM: DANIEL KLEIN
DATE: MAY 10,2018
RE:THE 2014 BROADBAND EQUIPMENT TAX CREDIT APPLICATION
FOR INLAND CELLULAR, LLC.; CASE NO. INC-T-18-01.
BACKGROUND
ln 2001, House Bill377 was enacted authorizing income tax credit for the installation of
qualifying broadband infrastucture in Idaho. Idaho Code $ 63-30298(3)(a)(ii). In particular,
Section 63-30291allows 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 least
125,000 bps from a subscriber;' Idaho Code $ 63-3291(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 $ 63-3029I(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 qualified 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 ta< credit, an order along with the
original Application is forwarded to the Idaho Tax Commission.
DECISION MEMORANDUM 1 MAY 10,2018
THE APPLICATION
On April 25,2018, the Commission received an Application from Inland Cellular, LLC.
("fnland" or "Company"), seeking approval of the equipment for the broadband tax credit
insta[ed during calendar year 2014. In the Application, Inland states that it installed equipment
associated with technologies to support LTE [Sonet Light Terminating Equipment] for 4G [4m
Generation Mobile System] voice and broadband data, in addition to cellular network
technologies. Inland discloses that it's broadband network has data transmission rates between
10 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. The
Company asserts that96% of its Idaho subscribers have access to the broadband network. Inland
invested approximately $613,878 in 2014 in qualifuing broadband equipment that it confirms is
integral to the broadband network
STAT REVIEW AIYD RECOMMENDATION
Staffhas 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)(b). 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 Order confirming the equipment identified in
Case No. INC-T-18-01 is qualified broadband equipment as defined n ldaho Code $
63-3029(3)(b) and forward it to the Idaho Tax Commission?
)*4(
Daniel Klein
Udmemos/INC-T-18-01 2014 Inland Broadband Tax Credit dcc mcmo
DECISION MEMORANDUM 2-MAY 10,2018
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