20190806final_order_no_34396.pdf

Office of the Secretary
Service Date
August 6,2019
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.POT-T-19-01
OF POTLATCH TELEPHONE COMPANY )DBA TDS TELECOM FOR AN )
INVESTMENT TAX CREDIT FOR )ORDER NO.34396QUALIFYINGBROADBANDEQUIPMENT)
INSTALLATION )
On July 1,2019,Potlatch Telephone Company dba TDS Telecom ("TDS"or
"Company")applied to the Idaho Public Utilities Commission ("Commission")for an order
confirming that equipment it installed in 2018 is "qualified broadband equipment"under Idaho
Code §63-3029I (Income tax credit for investment in broadband equipment).
On July 17,2019,TDS filed an amendment to its Application to add "capital
expenditures relating to bonding and fiber deployment to the list of equipment types that the
Company is requesting that the [C]ommission determine is 'qualified broadband equipment[.]'"
Amendment to Application at 1.
With this Order,we confirm that the installed equipment is "qualified broadband
equipment"under Idaho Code §63-3029I.
THE APPLICATION
In its Application filed on July 1,2019,TDS stated it invested $237,400.40 in
qualifying broadband equipment in 2018 as listed and itemized in Attachment 2 included with its
Application.On July 17,2019,TDS filed an amendment to its Application with the Commission
representing that it had actually invested $348,198.51 in qualifying broadband equipment in
2018 rather than the lesser amount that it had set forth in its Application.See Attachment l to
Amendment to Application.The Company asserts the investment of $348,198.51 allowed it to
install broadband equipment associated with Digital Subscriber Line ("DSL")service.
Application at 1;see also Amendment to Application at 1.TDS asserts that its broadband
network has data transmission rates of 256 kilobits per second to 3 megabits per second
("Mbps")upstream and 1 Mbps to 100 Mbps downstream.Application at p.2.The Company
also states that 96%of its Idaho subscribers have access to its broadband service.Id.Finally,
the Company certifies that the equipment set forth in Attachment 1 to the Amendment to the
ORDER NO.34396 1
Application is necessary for the provision of broadband service and an integral part of its
broadband network.Id.
THE BROADBAND EQUIPMENTTAX CREDIT
Idaho Code §63-3029I 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 §63-3029I(4).The statute defines "qualified broadband equipment"as equipment that:(1)
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 §63-3029I(3)(b));(2)in "the case of a telecommunications carrier,
such 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));and is "primarily used to
provide services in Idaho to public subscribers[.]"See Idaho Code §63-3029I(3)(b)(vii).
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
ultimatelyapproves the application,then the Commission forwards it and the order to the Idaho
State Tax Commission.
STAFF REVIEW
Staff reviewed TDS's Application under Idaho Code §63-3029I.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 broadbandequipment"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.
I The Commission issued Order No.28784 pursuant to Idaho Code §63-3029I(4),which provides the Commission
authority to "issue procedural orders necessary to implement"the income tax credit for investment in broadband
equipment.
ORDER NO.34396 2
COMMISSION FINDINGS
Having reviewed TDS's Application and Staff's recommendation,we find that the
Company's equipment identified in Case No.POT-T-19-01 is "qualified broadband equipment"
eligible for the tax credit under Idaho Code §63-3029I.The Company is a telecommunications
carrier.Further,the listed equipment (as presently configured)is an integral part of the
Company's broadband network and is necessary to the provision of broadband service to Idaho
customers.Accordingly,it is appropriate for the Commission to issue an order confirmingthat
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 TDS's Application for an order confirming that
equipment it installed in 2018 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.
ORDER NO.34396 3
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of August 2019.
PAUL KJELLÁ ER,PRESIDENT
KRISTINE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
Diane M.Hanian
Commission Secretary
POTTl901 BTC_jrh
ORDER NO.34396 4