20221025Final_Order_No_35570.pdf

ORDER NO. 35570 1
Office of the Secretary
Service Date
October 25, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF INLAND CELLULAR
LLC’S APPLICATION FOR A 2021
INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT
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CASE NO. INC-T-22-01

ORDER NO. 35570

On August 29, 2022, Inland Cellular LLC (“Company”) applied for an order confirming
that equipment it installed in 2021 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
The Company asserted it made certain qualifying broadband investments. Application at
2; see also Idaho Code § 63-3029I(3)(b). Specifically, the Company indicated that its net
investment in qualifying broadband equipment in 2021 was $1,350,411.50. See Broadband
Equipment List attached to Application. 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.” Application at 1. 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 25.5% of Idaho
subscribers are customers of its broadband network. Id. Finally, the Company confirms that it
believes the equipment it installed in 2021 qualifies for the tax credit under Idaho Code § 63-
3029I. Id. at 2.
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 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 and “is capable of transmitting signals at a rate of at
ORDER NO. 35570 2
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 public subscribers. See
Idaho Code § 63-3029I(3)(b)(vii). 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 issued Order No. 28784.1
That order specifies the information the taxpayer must include in the broadband tax credit
application. In 2021, in Case No. GNR-T-21-10, the Commission modified the informational
requirements set forth by Order No. 28784. See Order No. 35297. When the taxpayer files the
Application, Commission Staff (“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 believed 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 recommendations, we find that
the Company’s equipment identified in Case No. INC-T-22-01 is “qualified broadband
equipment” eligible for the tax credit under Idaho Code § 63-3029I. 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 2021 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. 35570 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 regarding any matter decided therein. 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 25th day of
October 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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