HomeMy WebLinkAbout20210407Final_Order_No_34992.pdfORDER NO. 34992 1
Office of the Secretary
Service Date
April 7, 2021
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE 2020
BROADBAND EQUIPMENT TAX CREDIT
APPLICATION FOR SYRINGA
NETWORKS, LLC
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CASE NO. SZ9-T-21-01
ORDER NO. 34992
On February 25, 2021, Syringa Networks, LLC (“Company”) applied for an order
confirming that equipment it installed in 2020 is “qualified broadband equipment” under Idaho
Code § 63-3029I (Income tax credit for investment in broadband equipment). On March 24, 2021,
the Company submitted a revised Exhibit A detailing the broadband equipment the Company
installed in 2020. With this order, we confirm that the installed equipment included in the revised
Exhibit A is “qualified broadband equipment” under Idaho Code § 63-3029I.
THE APPLICATION
In its Application, the Company states that in 2020 its net investment in qualifying
broadband equipment was $1,697,308.59. Revised Exhibit A at 2. The Company asserts it made
certain investments that constitute “qualified broadband equipment.” Application; see Idaho Code
§ 63-3029I(3)(b). The Company states that its fiber optic network is capable of transmission speeds
between 10Mbps and 100Gbps, which meet the required rates of 200,000 bits per second to a
subscriber and 125,000 bits per second from a subscriber. See Application. Finally, the Company
certifies that the equipment it lists in its Application “is necessary to the provision of broadband
service and are an integral part of the broadband network.” Id.
THE BROADBAND EQUIPMENT TAX 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). The statute defines “qualified broadband equipment” as equipment that: (1) 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 § 63-3029I(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
ORDER NO. 34992 2
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 issued Order No. 28784.1
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 the Company’s Application under Idaho Code § 63-3029I. Based on its
review, Staff believes 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 FINDINGS
Having reviewed the Company’s Application and Staff’s recommendation, we find that
the Company’s equipment identified in Case No. SZ9-T-21-01 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.
O R D E R
IT IS HEREBY ORDERED that the Company’s Application for an order confirming
that equipment it installed in 2020 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 regarding any matter decided in this order. Within seven (7) days after any person
1 The Commission issued Order No. 28784 pursuant to Idaho Code § 63-3029I(4), which empowers the Commission
to “issue procedural orders necessary to implement” the statute.
ORDER NO. 34992 3
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 April 2021.
PAUL KJELLANDER, PRESIDENT
KRISTINE RAPER, COMMISSIONER
ERIC ANDERSON, COMMISSIONER
ATTEST:
Jan Noriyuki
Commission Secretary
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