20160209final_order_no_33469.pdf

Office of the Secretary
Service Date
February 9,2016
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF SYRINGA )
NETWORKS,LLC’S APPLICATION FOR )CASE NOS.SZ9-T-16-O1
AN INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )
EQUIPMENT )ORDER NO.33469
___________________________________________________________________________________
)
On January 28,2016,Syringa Networks,LLC (the “Company”)applied to the
Commission for an Order confirming that 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 §63-30291.
THE APPLICATION
In its Application,the Company describes itself as a “provider of wholesale
broadband telecommunications service,and other telecommunications services in southern Idaho
with maximum transmission speeds of 10-Gig per second.”See Application.The Company
further states that it invested $1,690,541 in qualifying broadband equipment in 2015.See Id.,
Exhibit A (listing Company’s investments in its network).
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §63-3 0291 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:
(I)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));and (2)is “primarily used to provide services
in Idaho to Idaho public subscribers.”See Idaho Code §63-3029I(3)(b)(vii).Further,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-
3 0291(3)(b)(i).
ORDER NO.33469 1
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 tiles 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 FII’DINGS
Having reviewed the Company’s Application and Staff’s recommendation,we find
that the Company’s equipment is “qualified broadband equipment”eligible for the tax credit
under Idaho Code §63-3 0291.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 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 2015 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
ORDER NO.33469
after any person has petitioned for reconsideration,any other person may cross-petition for
reconsideration.See Idaho Code §6 1-626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of February 2016.
ATTEST:
I/
Je&in D.Jewell (1
Commission Seretary
Q:SZ9-T-16-Olkk
iLJj
KRI INE RAPER,COMMISSIONER
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ANDERSON.COMMISSIONER
ORDER NO.33469