20230328Decision Memo.pdf

DECISION MEMORANDUM - 1 - MARCH 28, 2023
DECISION MEMORANDUM

TO: COMMISSIONER ANDERSON
COMMISSIONER HAMMOND
COMMISSIONER LODGE
COMMISSION SECRETARY
LEGAL
WORKING FILE

FROM: JOHAN E. KALALA-KASANDA
MICHAEL DUVAL

DATE: MARCH 28, 2023

RE: IN THE MATTER OF SYRINGA NETWORKS, LLC APPLICATION FOR
THE 2022 BROADBAND EQUIPMENT TAX CREDIT;
CASE NO. SZ9-T-23-01.

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 confirming that 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 - 2 - MARCH 28, 2023
THE APPLICATION
On February 23, 2023, the Commission received an Application from Syringa Networks,
LLC. (“Syringa” or “Company”), seeking approval of the equipment for the broadband tax credit
installed and put into operation during calendar year 2022. On March 06, 2023, the Company
submitted an Amended Application in compliance with Commission’s Order No. 35297 in Case
No. GNR-T-21-10. 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 transmits data at a minimum rate of 1.5 MB per
second or 12,000,000 bits per second for both upload and download. This is the transmission
speed available to its customers. This rate meets the statutory requirements pursuant to Idaho
Code § 63-3029I. Syringa invested approximately $1,930,095.92 in 2022 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 investment tax credit pursuant to Order No. 35297 and
Idaho Code § 63-3029I(3)(b). Staff, therefore, recommends that the Commission issue an order
confirming the 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 confirming the equipment identified in Case
No. SZ9-T-23-01 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-23-01 2022 Syringa Broadband Tax Credit