20201113Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DANIEL KTEIN
NOVEMBER 12,2O2ODATE:
RE;THE 2OI9 BROADBAND EQUIPMENT TAX CREDIT APPLICATION
FOR MILLENNIUM NETWORKS, LLC; CASE NO. MNL-T-20-02.
BACKGROUND
In 2001, House Bill 377 was enacted authorizing income tax credit for the installation of
qualiffing broadband infrastructure in ldaho. Idaho Code g 63-30298(3XaXii). In particular,
Section 63-30291 allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is defined as "those netrvork 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." ldaho Code $ 63-3291(3Xb). 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." ldaho Code $ 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 ldaho Tax Commission.
DECISION MEMORANDUM -l-NOVEMBER 12,2O2O
THE APPLICATION
On March 16,2020, the Commission received an Applicarion from Millennium
Networks, LLC ("Millennium" or "Company"). seeking approval of the equipment for the
broadband tax credit installed during catendar year 2019. 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 509'ir of its ldaho subscribers have access
to the broadband network. The Company invested approximately $457,71 7.12 in20l9 in
qualiffing broadband equipment that it confirms is integral to the broadband nerwork.
STAFF REVIEW AND RECOMMENDATION
Staffhas reviewed and audited the list of proposed broadband equipment and believes the
identified equipment qualifies for the investment ta.x credit pursuant to Procedural Order
No. 28784 and ldaho Code $ 63-30291(3Xb). Staff, therefore, recommends that the Commission
issue an Order confirming the equiprnent is qualified broadband equipment and forward the
approving Order along with a copy of the original Application ro the ldaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirming the equipment identified in Case
No. MNL-T-2A'02 is qualified broadband equipment as defined in lclaho Code g 63-30291(JXb)
and forward it to the ldaho Tax Commission?
Daniel KIein
urlmcmos/lr{NL-T-2042 lrlillcnnium Ncrrrorlis, LLC 20lg Broatlbund ro.t CrcrJit
DECISION MEMORANDUM -2-NOVEMBER I2,2O2O