20200306Decision Memo.pdf

RE
DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM: DANIEL KLEIN
DATE: MARCH 5,2020
THE 2018 BROADBAND EQUIPMENT TAX CREDIT APPLICATION
FOR MILLENNIUM NETWORKS, LLC; CASE NO. MNL-T-20-01.
BACKGROUND
In 2001, House Bill377 was enacted authorizing income tax credit for the installation of
qualiffing broadband infrastructure in Idaho. Idaho Code g 63-3029B(3)(a)(ii). 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 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." Idaho Code g 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 as determined the
installed equipment is eligible for the broadband equipment tax credit, an order along with the
original Application is forwarded to the Idaho Tax Commission.
DECISION MEMORANDUM MARCH 5,2020
THB APPLICATION
On January 14,2020, 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 year 2018. An Amendment to the Application
was filed on March 3,2020. In the Application, Millennium states that it installed equipment
associated with Cable Modem and High Speed Broadband 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 125,000 bits per second from a subscriber. The Company
asserts that more than 50o/o of its Idaho subscribers have access to the broadband network. The
Company invested approximately $4 12,645,1 3 in 201 8 in qualifuing 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 pursuant to Procedural Order No.
28784 and ldaho Code $ 63-30291(3)(b). Stafl, therefore, 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 Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirming the equipment identified in
Case No. MNL-T-20-01 is qualified broadband equipment as defined in ldaho Code
$ 63-3029I(3)(b) and forward it to the ldaho Tax Commission?
0
Daniel Klein
Udmernos,MNL-T-20-01 2018 Millennium Netu,orks [.LC Broadband Tari Credit
DECISION MEMORANDUM 1L-MARCH 5,2020