20201007Final_Order_No_34811.pdf

ORDER NO. 34811 1
Office of the Secretary
Service Date
October 7, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF INLAND CELLULAR,
LLC FOR A 2019 BROADBAND
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
)
)
)
)
)
)
CASE NO. INC-T-20-01

ORDER NO. 34811

On September 15, 2020, Inland Cellular, LLC (“Company”) applied to the Idaho Public
Utilities Commission (“Commission”) for an order confirming that equipment it installed in 2019
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 2019 its net investment in qualifying
broadband equipment was $2,006,539.47. See Application at 5. Specifically, the Company stated
that it installed equipment associated with technologies to support “[M]obile EVDO and LTE data:
fixed wireless, fiber to the premises: fiber backhaul and, microwave backhaul”. Id. The Company
stated that its broadband network has data transmission rates between 1 Mbps to 1 Gbps 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 asserts that 22.3%
of Idaho subscribers are customers of its broadband network. Id. Finally, the Company confirms
through its Application that the qualifying broadband equipment is an integral part of the
broadband network. Id. at 1 through 5.
THE BROADBAND EQUIPMENT TAX 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
ORDER NO. 34811 2
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
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.
28784.1 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 § 63-3029I. 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-20-01 is “qualified broadband
equipment” eligible for the tax credit under Idaho Code § 63-3029I. 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
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.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for an order confirming
that equipment it installed in 2019 is “qualified broadband equipment” is granted.

1 The Commission issued Order No. 28784 pursuant to Idaho Code § 63-3029I(4), which empowers the Commission
to “issue procedural orders necessary to implement” the statute.
ORDER NO. 34811 3
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 7th
day of October 2020.

PAUL KJELLANDER, PRESIDENT

KRISTINE RAPER, COMMISSIONER

ERIC ANDERSON, COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

I:\Legal\TELEPHONE\INCT2001_final_JH.docx