20100507final_order_no_31077.pdf

Office of the Secretary
Service Date
May 7, 2010
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION
OF MIDV ALE TELEPHONE EXCHANGE
FOR AN INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFYING BROADBAND
EQUIPMENT ORDER NO. 31077
CASE NO. MID-10-
On April 8, 2010, the Commission received an Application from Midvale Telephone
Exchange ("Midvale ) asking for approval of a broadband tax credit for 2006 and 2007 pursuant
to Commission Order No. 28784 and Idaho Code 9 63-30291(4).
THE APPLI CA TI 0
In its Application, Midvale states that it has installed equipment associated with
Digital Subscriber Line (DSL) and Asynchronous Transfer Mode (ATM) services with a
minimum transmission rate of 45 Mbps. Midvale asserts that 95% of its customers in five of the
six exchanges can be served by the Company s broadband network. Midvale s Application
discloses that the Company invested approximately $277 500 in 2006 and $634 200 in 2007 in
qualifying broadband equipment.
STAFF REVIEW
Staff has reviewed the list of proposed broadband equipment submitted by Midvale
and believes the identified equipment qualifies for the investment tax credit pursuant to
Procedural Order No. 28784 and Idaho Code 9 63-30291(3)(b). Staff also believes that the
expenditures identified by Midvale, a telecommunications provider, were for equipment that is
necessary for the provision of broadband services and an integral part of a broadband network."
Staff recommended that the Commission issue an Order confirming the equipment is qualified
broadband equipment, as defined in Idaho Code 9 63-3029I(3)(b)(i), and forward a copy of the
Order to the Idaho Tax Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the broadband tax credit, the taxpayer must first
obtain an Order from the Commission "confirming that the installed equipment is qualified
broadband equipment." Idaho Code 9 63-30291(4). "In the case of a telecommunications
ORDER NO. 31077
carrier, such qualifying equipment shall be necessary to the provision of broadband service and
an integral part of a broadband network.Idaho Code 9 63-3029I(3)(b)(i).
Based upon our review of the Application and the recommendations of the Staff, we
find that Midvale s Application for a qualifying broadband equipment Order should be granted.
Midvale has adequately demonstrated that the equipment identified in its Application
qualifying broadband equipment subject to the tax credit. Further, we find that Midvale is a
telecommunications carrier and, as presently configured, the installed equipment is an integral
part of the Company s broadband network and that it is necessary to facilitate the delivery of
broadband Internet service to Idaho customers. It is therefore appropriate for the Commission to
issue this Order confirming that the equipment identified in Midvale s Application is qualifying
broadband equipment installed during the 2006 and 2007 calendar years.
ORDER
IT IS HEREBY ORDERED that Midvale Telephone Exchange s Application for an
Order certifying that it installed qualifying broadband equipment during the 2006 and 2007
calendar years is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of Midvale
Application be served upon 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. Idaho Code 99 61-626, 63-30291(4).
ORDER NO. 31077
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this ?-f40
day of May 2010.
/I ~rJI . KEMPTON , PRE ENT
MARSHA H. SMITH, COMMISSIONER
MACK A. REDFORD, C
ATTEST:
fj
~. JeWell
Commission Secretary
O:MID-IO-
ORDER NO. 31077