20130904final_order_no_32886.pdf

Office of the Secretary
Service Date
September 4,2013
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF ONE WAVE NETWORKS,)
LLC’S 2012 BROADBAND EQUIPMENT TAX )CASE NO.OWN-T-13-01
CREDIT APPLICATION.)
)ORDER NO.32886
_____________________________________________________________________________________)
On August 14,2013,One Wave Networks,LLC (the “Company”)applied to the
Commission for an Order confirming that equipment it installed in 2012 is “qualified broadband
equipment”under Idaho Code §63-30291 (Income tax credit for investment in broadband
equipment).With this Order,we confirm that the installed equipment is “qualified broadband
equipment”under Idaho Code §63-30291.
THE APPLICATION
In its Application,the Company says it invested $303,699.03 in qualifying broadband
equipment in 2012.The Company says it is an Internet Services Provider that offers fixed
wireless broadband connectivity services through fixed wireless and packet switching
technologies.The Company says the equipment it installed has transmission rates of 1,000,000
bits per second (“bps”)to 50,000,000 bps.The Company says it installed the broadband
equipment in the Magic Valley and surrounding areas and added about 560 customers.See
Application.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §60-30291 allows a taxpayer to receive an income tax credit for having
installed qualified broadband equipment during a calendar year.Before the taxpayer is eligible
for the tax credit,the taxpayer must first apply to the Commission for an Order confirming that
the installed equipment is “qualified broadband equipment”as defined in the statute.Idaho Code
§63-30291(4).That statute defines “qualified broadband equipment”as equipment that qualifies
for the Idaho Code §63-3029B capital investment credit that “is capable of transmitting signals
at a rate of at least [200,000 bps]to a subscriber and at least [125,000 bps]from a subscriber.”
Idaho Code §63-30291(3)(b).The equipment must also be primarily used to provide services in
Idaho to public subscribers.See Idaho Code §63-30291(3)(b)(vii).Additional requirements
ORDER NO.32886 1
apply to specific types of equipment.In the case of a wireless carrier,1 qualifying equipment is
only that equipment that extends from a transmitting/receiving antenna,including such antenna,
which transmits and receives signals to or from multiple subscribers to a transmitting/receiving
antenna on the outside of the structure in which the subscriber is located.”Idaho Code §63-
30291(3)(b)(iv).Further,packet-switching equipment only qualifies to the extent it is installed
with other qualifying equipment and “is the last in a series of equipment that transmits signals to
a subscriber or the first in a series of equipment that transmits signals from a subscriber.”Idaho
Code §63-30291(3)(b)(v).2
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784.That Order specifies the information the taxpayer must include in the broadband tax
credit application.When the taxpayer files the application,the Commission Staff reviews it to
determine whether the listed equipment meets the statutory definition of “qualified broadband
equipment.”Staff then submits a recommendation to the Commission,If the Commission
ultimately approves the application,the Commission forwards it and the Order to the Idaho State
Tax Commission.
STAFF REVIEW
Staff reviewed the Company’s Application under Idaho Code §63-3 0291.Based on
its review,Staff believes that the Company is a wireless carrier that uses fixed wireless and
packet-switching technologies to offer broadband services,and that the listed equipment is
qualified broadband equipment”as defined in the statute and is eligible for the tax credit.Staff
thus recommended the Commission:(1)issue an Order confirming that the Company’s
equipment is “qualified broadband equipment,”and (2)forward copies of the Application and
Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
Based on our review of the record,we find that the Company is a wireless carrier that
offers broadband services to Idaho customers,and that the Company’s listed equipment is
“qualified broadband equipment”subject to the tax credit under Idaho Code §63-30291.
As used here,“wireless carrier”means “any person,other than a telecommunications carrier,commercial mobile
service carrier,cable operator,open video operator,or satellite carrier,providing broadband services to subscribers
through the radio transmission of energy.See Idaho Code 63-30291(3)(b)(iv).
2 “Packet-switching equipment”is equipment that controls or routes the path of a digital transmission signal that is
assembled into packets or cells.See Idaho Code §63-3029l(3)(b)(v).
ORDER NO.32886
Accordingly,it is appropriate for the Commission to issue an Order confirming that the
Company’s equipment is “qualified broadband equipment.”The Commission makes no findings
regarding the costs of the installed broadband equipment or other expenses.
ORDER
IT IS HEREBY ORDERED that the Company’s Application for an Order confirming
that equipment it installed in 2012 is “qualified broadband equipment”is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served on 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.See Idaho Code §61-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of September 2013.
I
L
PAUL KJELLANDER,PRESIDENT
L
MACK A.REDFORD,COMMISSIONER
MARSHA H.SMITH,COMMISSIONER
ATTEST:
Jn D.Jewe
Commission Secretary
O:OWNTI 30 lkk
ORDER NO.32886 3