20220311Decision Memo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:JOHAN E.KALALA-KASANDA
RILEY NEWTON
DATE:MARCH 11,2022
RE:THE 2021 BROADBAND EQUIPMENTTAX CREDIT APPLICATION
FOR SYRINGA NETWORKS,LLC;CASE NO.SZ9-T-22-01.
BACKGROUND
In 2001,House Bill 377 was enacted authorizing income tax credit for the installation of
qualifying broadband infrastructure in Idaho.Idaho Code §63-3029B(3)(a)(ii).In particular,
Section 63-3029I allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is defined as "those network facilities capable of
transmitting signals at a rate of at least 200,000 bits per seconds (bps)to a subscriber and at least
125,000 bps from a subscriber."Idaho Code §63-329I(3)(b).If the equipment is installed by a
telecommunications carrier,it must also be "necessary to the provision of broadband services
and an integral part of a broadband network."Idaho Code §63-3029I(3)(b)(i).To be eligible
for the tax credit,the taxpayer must obtain from the Commission an order confirmingthat the
installed equipment meets the statutory definition of qualified broadband equipment.Procedural
Order No.28784 and Idaho Code §63-3029I(4).Once the Commission has determined the
installed equipment is eligible for the broadband equipment tax credit,an order along with the
original Application is forwarded to the Idaho Tax Commission.
DECISION MEMORANDUM -1 -MARCH 11,2022
THE APPLICATION
On January 28,2022,the Commission received an Application from Syringa Networks,
LLC.("Syringa"or "Company"),seeking approval of the equipment for the broadband tax credit
installed during calendar year 2021.In the Application,Syringa lists the investments associated
with its fiber optic facilities,equipment,and engineering connected with the broadband network.
The Company represents that "the list of installed equipment is necessary to the provision of
broadband service and is an integral part of the broadband networks."Furthermore,the
Company discloses that its broadband network has data transmission rates at a minimumrate of
1.5 MB per second or 12,000,000 bits per second for both upload and download speed available
to customers.This rate meets the statutory requirements pursuant to Idaho Code §63-30291.
Syringa invested approximately $2,259,651.70in 2021 in qualifying broadband equipment that it
confirms is integral to the broadband network.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed and audited the list of proposed broadband equipment and believes the
identified equipment qualifies for the investmenttax credit pursuant to Order No.35297 and
Idaho Code §63-30291(3)(b).Staff,therefore,recommends that the Commission issue an order
confirmingthe equipment is qualified broadband equipment and forward the approving order
along with a copy of the Application to the Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an order confirmingthe equipment identified in Case
No.SZ9-T-22-01 is qualified broadband equipment as defined in Idaho Code §63-3029I(3)(b)
and forward it to the Idaho Tax Commission?
Johan E.Kalala-Kasanda
Udmemos/SZ9-T-22-01 2021 Syringa Broadband Tax Credit
DECISION MEMORANDUM -2 -MARCH 11,2022