20150317final_order_no_33251.pdf

Office of the Secretary
Service Date
March 17,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF TW TELECOM OF )
IDAHO,LLC’S 2012 BROADBAND )CASE NO.TWT-T-14-01
EQUIPMENT TAX CREDIT APPLICATION.)
________________________________)
ORDER NO.33251
On February 18.2014,tw telecom of Idaho,lic (the “Company”)applied to the Idaho
Public Utilities Commission (“Commission”)for an Order confirming that equipment it installed
in 2012 is “qualified broadband equipment”under Idaho Code §63-30291 (Income tax credit for
investment in broadband equipment).The Company filed an Amended Application on August 4,
2014.1
With this Order,we confirm that the installed equipment is “qualified broadband
equipment”under Idaho Code §63-30291.
THE APPLICATION
In its Application,the Company says in 2012 it installed $3,528,187.04 of equipment
through which the Company delivers broadband services “via a private fiber optic based network
which uses Sonet,Ethernet and [Dense Wavelength Division Multiplexingj equipment.”The
Company says it installed the equipment in Ada,Bannock.Bingham,Bonneville,Canyon,
Kootenai.Madison,Minidoka,Nez Perce,and Power counties,and that its broadband network
can serve all of its Idaho business customers.The Company says its network can transmit
signals at rates of 1.5 megabits per second (1,500,000 bits per second (“bps”))to 10 gigabits per
second (10,000,000,000 bps).See Application.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §60-30291 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
qualifies for the Idaho Code §63-3029B capital investment credit that “is capable of transmitting
This Order refers to the Company’s Amended Application as the “Application.”
ORDERNO.33251 1
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,to be “qualified broadband equipment”
the equipment must be “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 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 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 §63-30291.Based on
its review,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 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 is “qualified broadband equipment”subject to the tax credit under
Idaho Code §63-30291.The Company is a telecommunications carrier.Further,the listed
equipment (as presently configured)is an integral part of the Company’s broadband network and
is necessary to the provision of broadband service to Idaho customers.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.
ORDER NO.33251
ORDER
IT IS HEREBY ORDERED that the Company’s Application is granted.The
Commission confirms that the equipment the Company installed in 2012 is “qualified broadband
equipment”under Idaho Code §63-30291.
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 §6 1-626 and 62-6 19.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this /7
dayofMarch20l5.-
7 7____—
PAUL KJELLANDER PRESIDENT
.
MACK A.REDFORD,COMMISSIONER
4/A
KR TINE RAPER,COMMISSIONER
ATTEST:
mmission Secretary
O:TWT-T-14-O1_kk
ORDER NO.33251 3