20180403final_order_no_34021.pdf

Office of the Secretary
Service Date
April 3,2018
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION )CASE NO.SZ9-T-18-01
OF SYRINGA NETWORKS,LLC FOR AN )
INVESTMENT TAX CREDIT FOR )
INSTALLING QUALIFYING BROADBAND )ORDER NO.34021
EQUIPMENT )
On January 25,2018,Syringa Networks,LLC applied to the Idaho Public Utilities
Commission for an Order confirming that equipment it installed for calendar year 2017 is
"qualified broadband equipment"under Idaho Code §63-3029I (Income tax credit for
investment in broadband equipment).With this Order,we confirm that the installed equipment
meets that statutory definition.
THE APPLICATION
In its Application,the Company indicated that in 2017 it invested $4,325,830 in
qualifying broadband equipment.See Application at 4.In the Application,Syringa lists
investments associated with its fiber optic facilities,equipment,and engineering connected with
the broadband network.Syringa states "the list of installed equipment is necessary to the
provision of broadband service and is an integral part of the broadband networks."Syringa
discloses that its broadband network has data transmission rates at a minimum rate of 1.5 Mbps
for both upstream and downstream transmissions with transmission speeds up to 100-Gig per
second.This rate is above the statutory speed requirements pursuant to Idaho Code §63-30291.
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).That statute defines "qualified broadband equipment"as equipment that
qualifies for the Idaho Code §63-3029B capital investment credit that "is capable of transmitting
signals at a rate of at least"200,000 bits per second (bps)to a subscriber and at least 125,000 bits
per second (bps)from a subscriber.Idaho Code §63-3029I(3)(b).In addition,to be "qualified
broadband equipment"the equipment must be "primarily used to provide services in Idaho to
Idaho public subscribers."Idaho Code §63-3029I(3)(b)(vii).Further,in "the case of a
ORDER NO.34021 1
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).
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 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
ultimately approves the application,then the Commission forwards it and the Order to the Idaho
State Tax Commission.
STAFF REVIEW
Staff reviewed and audited the Company's Application under Idaho Code §63-3029I
and Commission Order No.28784.Based on its review and audit,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 certifying 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 FINDINGS
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 §63-3029I.The Company is a telecommunications carrier.Further,the listed
equipment (as presently configured)is an integral part of the Company's broadbandnetwork and
is necessary to the provision of broadband service to Idaho customers.Accordingly,it is
appropriate for the Commission to issue an Order certifying that the Company's equipment is
"qualified broadbandequipment."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 identified in Case No.SZ9-T-18-01 installed in 2017 is "qualified broadband
equipment"is granted.
ORDER NO.34021 2
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.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of April 2018.
PAUL KJELLÁNIP PR ŠIDENT
KRI ÌINE RAPER,COMMISSIONER
ERIC ANDERSON,COMMISSIONER
ATTEST:
Diane M.Hanian
Commission Secretary
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ORDER NO.34021 3