20071005Decision memo.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
COMMISSIONER REDFORD
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:GRACE SEAMAN
DATE:OCTOBER 5, 2007
RE:MUD LAKE TELEPHONE COO PERA TIVE' APPLI CA TI 0 N FOR
BROADBAND TAX CREDIT: CASE NO. MLC-07-
BACKGROUND
On September 12, 2007, the Commission received an Application from Mud Lake
Telephone Cooperative Inc. (Mud Lake) seeking approval of equipment for the broadband tax
credit pursuant to Commission Order No. 29784 and Idaho Code ~ 63-30291(4). To be eligible
for the tax credit, the taxpayer must obtain a Commission Order confirming that installed
equipment qualifies for the tax credit.
STAFF ANALYSIS
Mud Lake submitted a Broadband Tax Credit Application for 2006, identifying the
equipment that was installed to provide Digital Subscriber Line (DSL) and Wireless Broadband
services in Clark County and a portion of west em Jefferson County. Mud Lake states that this
equipment will allow network transmission rates of 128K to 1.5M bits per second and that 100%
of the customers served are Idaho residents. The 2006 broadband tax credit investment is
approximately $412 500.
STAFF REVIEW AND RECOMMENDATION
Staff has reviewed the list of proposed broadband equipment submitted by Mud Lake and
believes that the itemized equipment qualifies for the investment tax credit pursuant to Idaho
Code ~ 63-30291. Thus, Staff recommends approval ofthe Application and further recommends
DECISION MEMORANDUM - 1 -OCTOBER 5, 2007
that the Commission forward the approving Order along with a copy of the original Applications
to the Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve Mud Lake s Application for the broadband investment
tax credit?
Ih~
Grace Seaman
i:udrnernos/rn1c-07 -01 btc
DECISION MEMORANDUM - 2 -OCTOBER 5, 2007