20170413final_order_no_33740.pdf

Office of the Secretary
Service Date
April 13,2017
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF )
SYRINGA NETWORKS,LLC SEEKING A )CASE NO.SZ9-T-17-O1
BROADBAND INVESTMENT TAX CREDIT )
CERTIFICATION )ORDER NO.33740
________________________________________________________________________________)
On January 24,2017,Syringa Networks,LLC applied to the Commission for an
Order certifying that in 2016 it installed “qualified broadband equipment.”Idaho Code §63-
3 0291 (Income tax credit for investment in broadband equipment).
THE APPLICATION
Syringa stated in its Application that it provides broadband telecommunications and
other telecommunications services in southern Idaho.The Company provided the Commission
with an itemized inventory of installed equipment related to fiber optic facilities,equipment,and
engineering connected with the broadband network.Syringa asserted its network is able to
transmit signals at a minimum rate of 1.5 Mbps for both upstream and downstream
transmissions.According to Syringa,its total 2016 broadband investment was $3,052,000.
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 “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).In addition,qualified broadband
equipment must be “primarily used to provide services in Idaho to public subscribers.”Idaho
Code §63-30291(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 §63-30291(3)(b)(i).
In furtherance of its statutory responsibility,the Commission has issued Order No.
28784 that specifies the information the taxpayer must include in a broadband tax credit
application.When the taxpayer files the application,the Commission Staff reviews it to
ORDER NO.33740 1
determine whether the listed equipment meets the statutory definition of “qualified broadband
equipment.”Staff then submits a recommendation to the Commission.If the Commission
approves the application,the Commission will direct that the application,and the Order
approving it be forwarded to the Idaho State Tax Commission.
STAFF REVIEW
Staff reviewed Syringa’s Application in light of Idaho Code §63-30291 and
Commission Order No.28784.After review,Staff concluded that Syringa is a
telecommunications carrier and that the listed equipment meets the statutory criteria of qualified
broadband equipment eligible for the tax credit.Staff recommended that the Commission:(1)
issue an Order confirming that Syringa’s equipment is “qualified broadband equipment,”and (2)
forward copies of the Application and this Order to the Idaho State Tax Commission.
COMMISSION FINDINGS
In order to be eligible to obtain the broadband tax credit,a taxpayer must first obtain
an Order from the Commission “confirming that the installed equipment is qualified broadband
equipment.”Idaho Code §63-30291(4).“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 §63-30291(3)(b)(i).
Based upon our review of Syringa’s Application and the recommendation of Staff,we
approve the Company’s Application.Syringa adequately demonstrated that the equipment
identified in its Application qualifies as broadband equipment eligible for the tax credit.The
Commission finds that Syringa is a telecommunications carrier and the installed equipment is an
integral part of the Company’s broadband network and that it is necessary to facilitate the
delivery of broadband internet service to Idaho customers.Therefore,the Commission certifies
in this Order that the equipment identified in Syringa’s Application 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 Syringa’s Application seeking an Order certifying
that it has installed qualifying broadband equipment in Idaho during the 2016 calendar year is
approved.
ORDER NO.33740 2
IT IS FURTHER ORDERED that the Commission Secretary serve this Order
Syringa’s Application 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.Idaho Code §61-626,63-30291(4).
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this I)
day of April 2017.
PAUL KJEL A ,RESIDENT
ATTEST:
2
Diane M.Hanian
Commission Secretary
O:SZ9-T-17-O 1_bk
ERIC ANDERSON,COMMISSIONER
ORDER NO.33740 3