20200925Decision Memo.pdf

RE
DECISION MEMORANDI]M
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: DANIEL KLEIN
DATE: SEPTBMBER}A,2t20
THE 2019 BROADBAND EQUIPMENT TAX CREDIT APPLICATION
FOR INLAND CELLULAR, LLC.; CASE NO. INC-T-20-01.
BACKGROUND
ln 2001, I-louse Bill 377 was enacted authorizing income tax credit for the installation of
qualilying broadband infrastructure in Idaho . Itlaho Code $ 63-30298(3XaXii). In particular,
Section $4A291allows 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." ldaho Code $ 63-30291(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 has determined the
installed equipment is eligible for the broadband equiprnent tax credit, an order along with the
original Application is fbrwarded to the ldaho Tax Commission.
DECISION MEMORANDUM SEPTEMBER24,2O2O
THE APPLICATION
On September 15, 2020, the Commission received an Application from Inland Cellular,
LLC' ("lnland" or "Company"), seeking approval of the equipment for the broadband tax credit
installed during calendar year 2019. In the Application, Inland states that it installed equipment
associated with technologies to support "mobile EVDO and LTE data: fixed wireless, fiber to the
premises: fiber backhaul and, microwave backhaul". Inland discloses that its broadband network
has data transmission rates between I Mbps to I 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. The Company asserts that22.3o/o of ldaho subscribers are customers
of its broadband network. Inland invested approximately $2,006 ,53g.47 in 2019 in qualiffing
broadband equipment that it confirms 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 investment tax credit pursuanr to Procedural Order No.
28784 and ldaho Code $ 63-30291(3Xb). Stafl therefore, recommends thar 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-20-01 is qualified broadband equipment as define d in ldaho Code
$ 63-30291(3Xb) and forward ir to the Idaho Tax Commission?
Daniel Klein
[.]dmemos/[NC-T-20-01 dec nremo
DECISION MEMORANDUM -2-SEPTEMBER 24,2020