20221007Final_Order_No_35555.pdf

ORDER NO. 35555 1

Office of the Secretary
Service Date
October 7, 2022
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF POTLATCH
TELEPHONE COMPANY D/B/A TDS
TELECOM BROADBAND EQUIPMENT TAX
CREDIT FOR JANUARY 1, 2021 -
DECEMBER 31, 2021
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CASE NO. POT-T-22-01

ORDER NO. 35555

On July 12, 2022, Potlatch Telephone Company d/b/a TDS Telecom (“TDS” or
“Company”) filed an Application with the Idaho Public Utilities Commission (“Commission”)
seeking approval for Idaho State tax credit for qualifying broadband equipment installed during
the calendar year 2021.
TDS represented that it offered Digital Subscriber Line (DSL) services to customers in the
State of Idaho and had begun offering fiber to the home (FTTH) services in some locations as early
as June 2020. The Company disclosed that the lowest broadband network data transmission rate
offered to customers was 5Mbps/512kbs and up to 1Gig symmetrical where passive optical
network (PON) had been deployed. The Company represented that PON is a system commonly
used by telecommunications network providers that brought fiber optic cabling and signals all or
most of the way to the end user. Depending on where the PON terminated, the system could be
described as fiber to the curb, fiber to the building or fiber to the home. The Company represented
that the transmission rates that the Company offered exceeded the minimum statutory speed
requirements under Idaho Code § 63-3029I. The Company quantified the percentage of its Idaho
customers, by location, who had access to broadband, as of December 31, 2021, in Table No. 1
below:
Table No. 1
Speed Tier Percentage
more than 100Mbps x 25Mbps 40
25Mbps x 5Mbps 22
25Mbps x 3Mbps 6
10Mbps x 1Mbps 19
4Mbps x 1Mbps 2
1Mbps x 256kbps 5
Less than 1Mbps x 256kbps 6
Total 100%
ORDER NO. 35555 2

The Company also stated that it invested $871,213.90 in 2021 for qualifying broadband
equipment, and the Company confirmed that the equipment was integral to its broadband network.
THE BROADBAND EQUIPMENT TAX CREDIT
In 2001, House Bill 377 was enacted authorizing income tax credit for the installation of
qualifying broadband infrastructure in Idaho. Idaho Code § 63-3029B(3)(a)(ii). Section 63-3029I
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 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 § 63-329I(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 § 63-3029I(3)(b)(i). To be
eligible for the tax credit the taxpayer must obtain an order from the Commission confirming that
the installed equipment meets the statutory definition of qualified broadband equipment.
Commission Order No. 35297 and Idaho Code § 63-3029I(4). Once the Commission has
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.
STAFF REVIEW
Staff reviewed the Company’s Application under Idaho Code § 63-3029I and Order No.
35297. Based on its review, Staff believed the listed equipment met the statutory criteria and was
“qualified broadband equipment” that was eligible for the tax credit. Staff recommended the
Commission issue an order confirming that the Company’s equipment was “qualified broadband
equipment,” and forward copies of the Application and order to the Idaho State Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company’s Application and Staff’s recommendation, we find that the
Company’s equipment identified in Case No. POT-T-22-01 is “qualified broadband equipment”
eligible for the tax credit under Idaho Code § 63-3029I. 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 NO. 35555 3

ORDER
IT IS HEREBY ORDERED that the Company’s Application for an order confirming that
equipment it installed in 2021 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 may petition for
reconsideration within twenty-one (21) days of the service date upon this Order regarding 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 7th day of
October 2022.

ERIC ANDERSON, PRESIDENT

JOHN CHATBURN, COMMISSIONER

JOHN R. HAMMOND JR., COMMISSIONER

ATTEST:

Jan Noriyuki
Commission Secretary

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