20190215Decision Memo.pdf

IIE
DECISION MEMORANDUM
TO COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: DANIEL KLEIN
DATE: FEBRUARY 14,2019
THE 2016 & 2017 BROADBAND EQUIPMENT TAX CREDTT
APPLICATION FOR MILLENNTUM NETWORKS, LLC;
CASE NO. I\INL-T-l8-O I.
I}ACKGROUNI}
In 2001, House Bill377 rvas enactcd authorizing income tax credit for the installation of
qualifyirrg broadband infrastructure in Idaho. Idaho Code $ 63-30298(3XaXii). In particular,
Section 63-30291allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is detined as "those network facilities capable of
transmitting sigr"rals 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(3Xb). If the equipment is installed by a
telecommunications carrier, it must also be "necessary to the provision of broadband sen'ices
and an integral part of a broadband netlork." Idaho Code $ 63-30291(3)(bxi). To be eligible
for ths tax credit. the taxpayer must obtain from the Commission an Order confirming that the
installed equipment meets the statutory definition of qualified broadband equiprnent. Procedural
Order No. 28784 and ldaho Code $ 63-30291(4). Once the Commission has determined thc
installed equipment is eligible for the broadband equipment tax credit, an order along with the
original Application is fonvarded to the ldaho Tax Commission.
DECISION MEMORANDUM TEBRUARY 14,2019I
THE APPLICATION
On December 18.2018, the Commission received an Application from Millennium
Networks, LLC ("Millennium" or "Company"), seeking approval of the equipment for the
broadband tax credit installed during calendar years 2016 and?017 . In the Application,
Millennium states that it installed equipment associated with Cable Modem and High Speed
l]roadband services with transmission rates of l5 to 60 Mbps upstream and 3 to l0 Mbps
downstream, which exceeds the required rates of 200,000 bits per second to a subscriber and
l?5,000 bits per second from a subscriber. The Company asserts that more than 50% olits
Idaho subscribers have access to the broadband network. The Company invested approximateiy
$1,525,854.88 in2016and approximately$1,006,091.85 in20l7 inqualilyingbroadband
equipment that it confirms is integral to the broadband network.
STAFF REVIEW AND RECOMMETI.IDATION
Staff has revierved and audited the list of proposed broadband equipment and believes
the identified equipment qualifies for the investment tax credit pursuant to Procedural Order
Ncr. 28784 and ldaho Cacle $ 63-30291(3)(b). Stafl therefbre, recommends that 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 ldaho Tax Commission.
COMMISSION DECISION
Does the Commission rvish to issue an Ordsr confirming the equipment identified
in Case No. MNL-T-18-01 is qualitied broadband equipment as defined in ldaho Code
$ 63-3029I(3Xb) and forward it to the ldaho"l"ax Commission?
Daniel Klein
[ ]dmcmosil\,llri L-1'- 1 8-0 1 20 l tl M i l lcn iunr Nclvorks Ll.C llroadbnnd'I'ax Credit
DIICISION MEMORANDUI\4 a F'EBRUARY I4,2OI9