20160930final_order_no_33612.pdf

Office of the Secretary
Service Date
September 30, 2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )
OF POTLATCH TELEPHONE COMPANY ) CASE NO. POT-T-16-01
DBA TDS TELECOM FOR AN )
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND ) ORDER NO. 33612
_E_Q-=-U_I_P_M_E_N_T ___________ )
On September 12, 2016, Potlatch Telephone Company dba TDS Telecom (the
"Company") applied to the Idaho Public Utilities Commission ("Commission") for an Order
confirming that certain equipment it installed in 2015 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 § 63-3029!.
THE APPLICATION
In its Application, the Company states it invested approximately $282,000 in
qualifying broadband equipment in 2015. See Application at 4. The Company states it installed
equipment associated with Digital Subscriber Line (DSL), which is integral to the network that
permits broadband signaling to occur. See Id. at 2. The Company asserts that its broadband
network has data transmission rates above the minimum required rates of 200 Kbps to a
subscriber and 125 Kbps from a subscriber. The Company states that the equipment was
installed in the Juliaetta, Kendrick and Troy, Idaho exchanges and asserts that 94% of the
Company's total Idaho subscribers have access to its broadband network. Id.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code § 63-30291 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
§ 63-3029!( 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). Further, in "the case of a telecommunications carrier, such
ORDER NO. 33612
qualifying equipment shall be necessary to the provision of broadband service and an integral
part of a broadband network." Idaho Code§ 63-3029I(3)(b)(i).
In furtherance of its statutory responsibility, the Commission has issued Order No.
28784. 1 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, then the Commission forwards it and the Order to the Idaho
State Tax Commission.
STAFF REVIEW
Staff reviewed the Company's Application under Idaho Code § 63-30291. Based on
its review, Staff believes that the Company is a telecommunications carrier and that the listed
equipment meets the statutory criteria and is "qualified broadband equipment" that 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
Having reviewed the Company's Application and Staffs recommendation, we find
that the Company's equipment is "qualified broadband equipment" eligible for the tax credit
under Idaho Code § 63-30291. The Company is a telecommunications carrier. Further, the listed
equipment (as presently configured) is an integral part of the Company's Idaho broadband
network and is necessary for the provision of broadband service to Idaho customers.
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 certain equipment it installed in 2015 is "qualified broadband equipment" is granted.
1 The Commission issued Order No. 28784 pursuant to Idaho Code § 63-3029!(4), which empowers the
Commission to "issue procedural orders necessary to implement" Idaho Code§ 63-3029(4).
ORDER NO. 33612 2
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 2016.
ATTEST:
O:POT-T-16-0l_sc
ORDER NO. 33612 3