20151006final_order_no_33392.pdf

Office of the Secretary
Service Date
October 6,2015
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF QWEST CORPORATION
DBA CENTURYLINK QC’S BROADBAND )CASE NO.QWE-T-15-05
EQUIPMENT TAX CREDIT APPLICATION )
FOR 2014.)ORDER NO.33392
_____________________________________________________________________________________)
On September 9,2015,Qwest Corporation dba CenturyLink QC (“Qwest”or
“Company”)applied to the Commission for an Order confirming that equipment it installed for
calendar year 2014 is “qualified broadband equipment”under Idaho Code §63-30291 (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,Qwest indicated that in 2014,its net investment in qualifying
broadband equipment was S25.403.249.See Application at 1.According to the Company,
Qwest uses terrestrial wireline technology and various forms of DSL-based equipment,and a
mix of fiber optic and metallic cable,supporting traditional telephony services.Id.The
Company stated that the equipment is capable of transmitting signals at between 256 kilobits per
second (kbps)to 40 megabits per second (mbps),to or from a customer.1 Id.at 2.The Company
also stated that the equipment was installed in and around exchanges in Moscow.Lewiston,
Deary,Troy,Bovill,Genessee,Potlatch,and Orofino.Id.
THE BROADBAND EQUIPMENT TAX CREDIT
Idaho Code §63-30291 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
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 §63-30291(3)(b).In addition,to be “qualified
One rnbps equals 1,000 kbps.One kbps equals 1,000 bits per second (bps).
ORDER NO.33392 1
broadband equipment”the equipment must be “primarily used to provide services in Idaho to
Idaho public subscribers.”See Idaho Code §63-30291(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 Qwest’s Application under Idaho Code §63-30291.Based on its
review,Staff believes that Qwest is a qualified telecommunications provider,and that its listed
equipment meets the statutory criteria for “qualified broadband equipment”that is eligible for the
tax credit.Staff also believes the Company’s identified expenditures “were for equipment that is
‘necessary for the provision of broadband services and an integral part of a broadband network.”
Decision Memorandum at 2.Stall thus recommended that the Commission:(1)issue an Order
confirming Qwest’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 Qwest’s Application and Staffs recommendation.we find that the
Company’s equipment is “qualified broadband equipment”eligible for the tax credit under Idaho
Code §63-30291.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,based on what has been provided,we find it appropriate to issue an
Order confirming that Qwest’s equipment is “qualified broadband equipment.”The Commission
makes no findings regarding the costs of the installed broadband equipment or other expenses.
ORDER NO.33392 2
ORDER
IT IS 1-IEREBY ORDERED that Qwest Corporation dba CenturyLink QC’s
Application for an Order confirming that equipment it installed for 2014 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 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 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise,Idaho this
day of October 2015.
PAUL KJELLANER,PkES1DENT
1/LLa,L14
MARSHA SMITH,COMMISSIONER
KR1SINE RAPER,COMMISSIONER
ATTEST:
C mmission ecretarv
O:QWE-T-I 5-O5djh
ORDER NO.33392 3