20051007Decision memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:OCTOBER 5, 2005
RE:QWEST 2003 BROADBAND TAX CREDIT APPLICATION;
CASE NO. QWE-05-18.
BACKGROUND
On September 8, 2005, the Commission received an Application from Qwest Corporation
(Qwest) asking for approval of equipment for the broadband tax credit pursuant to Order No.
28784 and Idaho Code ~ 63-30291(4). To be eligible for the tax credit, the taxpayer must obtain
from the Commission an Order confirming that installed equipment qualifies for the tax credit.
STAFF ANALYSIS
Qwest's Application identifies the Company s broadband investments for the year 2003.
The Application indicated Qwest had installed central office equipment and fiber cables to provide
broadband services to Idaho customers. The Application included general broadband facilities
dedicated line facilities, and inter-office facilities. The Application included a signed affidavit
indicating the submitted investments qualified for the broadband tax credit. The Application
identified a net investment (new investment minus retirements) of over eight million dollars of in
2003.
STAFF REVIEW
In order to qualify for the credit, the broadband equipment must be capable of transmitting
signals at a rate of at least two hundred thousand (200 000) bits per second to a subscriber and at
least one hundred twenty-five thousand (125 000) bits per second from a subscriber. Idaho
DECISION MEMORANDUM OCTOBER 5 , 2005
Code ~ 63-3029I(3)(b). In addition, for a telecommunications carrier, such equipment must "
necessary to the provision of broadband service and an integral part of a broadband network"
Idaho Code ~ 63-3029I(3)(b)(i). Staff has reviewed the list of proposed broadband equipment
submitted by Qwest and believes that the equipment identified meets this statutory criteria.
Therefore, Staff recommends approval of the Application and further recommends that the
Commission forward the approving Order along with a copy of the original Application to the
Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve Qwest's Application for an Order confirming that the
installed equipment qualifies for the broadband investment tax credit?
u:dmemos/vZll 05 bband dm
DECISION MEMORANDUM OCTOBER 5, 2005