20190912final_order_no_34437.pdf

Office of the Secretary
Service Date
September 12,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF INLAND CELLULAR,)CASE NO.INC-T-19-01
LLC'S APPLICATION FOR A 2018 )INVESTMENT TAX CREDIT FOR )INSTALLING QUALIFYING BROADBAND )ORDER NO.34437EQUIPMENT)
On August 12,2019,Inland Cellular,LLC ("Company")applied to the Idaho Public
Utilities Commission ("Commission")for an order confirming that equipment it installed in 2018
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 states that in 2018 its net investment in qualifying
broadband equipment was $783,113.66.See Application at 3.The Company states that it made
certain investments that constitute "qualified broadband equipment".Id at 2.The Company states
that its transmission rates for subscriber uploads and downloads are between 3 Mbps (3,000,000
bits per second)and 10 Mbps (10,000,000 bits per second),and that this speed meets the
requirements of Idaho Code §63-3029I.Id at 5.The Company also states that 26.5%of the
potential subscribers within its service area are customers of its broadband network.Id.at 3.
Finally,the Company confirms through its exhibits that the qualifyingbroadband equipment is an
integral part of the broadband network.Id at 2 through 9.
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 confirming that the
installed equipment is "qualified broadband equipment"as defined in the statute.Idaho Code §
63-3029I(4).The statute defines "qualified broadband equipment"as equipment that:(1)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));and (2)is "primarily used to provide services in Idaho to Idaho public
subscribers."See Idaho Code §63-3029I(3)(b)(vii).Further,in "the case of a telecommunications
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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 Commission has issued Order No.
28784.'That order specifies the information the taxpayermust 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 ultimatelyapproves
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 §63-3029I.Based on
its review,Staff believes that 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 identified in Case No.INC-T-19-01 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 appropriatefor 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 broadband equipment or other expenses.
ORDER
IT IS HEREBY ORDERED that the Company's Application for an order confirming
that equipment it installed in 2018 is "qualified broadband equipment"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.
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"the statute.
ORDER NO.34437 2
THIS IS A FINAL ORDER.Any person interested in this order (or in issues fmally
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 Ñ
day of September,2019.
PAUL KJ LA ,PRESIDENT
KRPSTINE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
I\Legal\TELEPHONE\INC-T-19-0BINCT]901MH Order.docx
ORDER NO.34437 3