20181010final_order_no_34168.pdf

Office of the Secretary
Service Date
October 10,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )OF INLAND CELLULAR,LLC FOR AN )CASE NO.INC-T-18-03
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER NO.34168
EQUIPMENT )
On August 13,2018,Inland Cellular,LLC (the "Company")applied to the Idaho
Public Utilities Commission ("Commission")for an Order certifying that equipment it installed
in 2017 is "qualified broadband equipment"under Idaho Code §63-3029I (income tax credit for
investment in broadband equipment).With this Order,we confirm that the installed equipment
is "qualified broadband equipment"under Idaho Code §63-3029I.
THE APPLICATION
In its Application,the Company stated that in 2017 it installed $345,146 of qualifying
broadband 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.Application at 2.The Company stated that its broadband network
has data transmission rates between 10 Mbps and 3 Mbps for subscriber downloads and uploads
which exceeds the required rate(s)of 200,000 bits per second to a subscriber and 125,000 bits
per second from a subscriber.Id.The Company asserted that 87%of its Idaho subscribers have
access to its broadband network.Id.The Company stated that the above described investment
represents equipment that is integral to its broadband network.Id.at 1.
THE BROADBAND EQUIPMENTTAX CREDIT
Idaho Code §63-3029I 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 certifyingthat the
installed equipment is "qualified broadband equipment"as defined in the statute.Idaho Code §
63-3029I(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).In addition,qualified broadband equipment must be "primarily
used to provide services in Idaho to public subscribers."Idaho Code §63-3029I(3)(b)(vii).
ORDER NO.34168 1
Further,in "the case of a telecommunications carrier,such qualifying equipment shall be
necessary to the provision of broadband service and an integral part of a broadband network."
Idaho Code §63-3029I(3)(b)(i).
In furtherance of its statutory responsibility,the Comrnission has issued Order No.
28784.1 That Order specifies the information the taxpayer must include in the broadband tax
credit application.When the taxpayer files the application,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 resulting Order to
the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed the Company's Application under Idaho Code §63-3029I and
Commission Order No.28784.Based on its review,Staff believes the Company is a
telecommunications carrier and that the listed equipment meets the 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 §63-3029I.The Company is a wireless provider and the listed equipment 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 confirming that the Company's equipment is "qualified broadband equipment."
The Commission makes no findings regarding the costs of the installed broadbandequipment or
other expenses.
I 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 §63-3029I(4).
ORDER NO.34168 2
ORDER
IT IS HEREBY ORDERED that the Company's Application seeking an Order
confirmingthat it has installed qualified broadband equipment in Idaho during the 2017 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 §§61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /N
day of October 2018.
PAUL KJELLANDER,PRESIDENT
KR INE RAPER,CO ISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
INCTl803 BTC se
ORDER NO.34168 3