20181005Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSTONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING F'ILE
FROM:DAI$IEL T(LEIN
ocToBER 3, 2018DATE:
RE:THE 2015 BROADBAND EQUIPMENT TAX CREDIT APPLICATION
fOR INLAND CELLULAR, LLC.; CASE NO. INC-T-18-02.
BACKGROTJND
In 2001, House Bill377 was enacted authorizing income tax credit for the installation of
qualiffing broadband infrastructure in ldaho. Idaho Code $ 63-30298(3XaXii). 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 a( arate of at least 200,000 bits per seconds @ps) to a subscriber and at least
125,000 bps from a subscriber;' Idaha Code $ 63-3291(3)(b). If tlrc equiprnent is installed by a
telecornmunications carrier, it must also be o'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 [ax credit, the taxpayer must obtain from the Commission an Order confinning that the
installed equipment meets the stalutory definition of qualified broadband equipment. Procedural
Order No. 28784 xd ldaho Code $ $4A291(4). Once the Commission as deterrnined the
installed equipment is eligible for the broadband eqaipment tax credit, an order along with the
original Application is forwarded to the Idaho Tax Comrrrission.
IDECISION MEMORANDUM OCTOBER 3, 20I 8
THE APPLICATION
On August 13, 2018, the Commission received an Application from Inland Cellular,
LLC. ("Inland" or o'Comp6try"), seeking approval of the equipment for the broadband tax credit
installed dwing calendar year 2015. In the Application, lnland states that 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. Inland discloses that its broadband network has data transmission rates between l0
Mbps and I 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 that 87%o of its Idaho subscribers have access to the broadband network. Inland
invested approximately $2,024,892.92 in2015 in qualiffing broadband equipment that it
conlirms is integral to the broadband network
STAFF REVIEW AND RECOMMENDATION
Staff has reviewed and audited the list of proposed broadband equipment and believes the
identified equipment qualifies for the investrnent tax credit pusuant to Procedural Order No.
28784 and ldaho Code $ 63-3029I(3)(b). Stafi therefore, recommends that the Commission
issue an Order confimring 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-18-02 is qualified broadband equipment as defined in ldaho Code
$ 63-3029(3)(b) and forward it to the Idaho Tax Commission?
i:udmemos/ INC-T-I 8-02 201 5 lnland Broadband Tax Credit
DECISION MEMORANDI.'M 1-L'OCTOBER 3,2018
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