20200528Final_Order_No_34678.pdf

ORDER NO. 34678 1

Office of the Secretary
Service Date
May 28, 2020
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION

IN THE MATTER OF QWEST
CORPORATION’S APPLICATION FOR A
2018 INVESTMENT TAX CREDIT FOR
INSTALLING QUALIFIED BROADBAND
EQUIPMENT
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CASE NO. QWE-T-20-01

ORDER NO. 34678

On January 14, 2020, Qwest Corporation ("Company") applied to the Idaho Public
Utilities Commission ("Commission") for an order confirming that equipment the Company
installed in 2018 is "qualified broadband equipment" under Idaho Code § 63-3029I (Income tax
credit for investment in broadband equipment). On April 22, 2020, the Company filed an
Amended Application.
With this Order, we confirm that the installed equipment is "qualified broadband
equipment" under Idaho Code § 63-3029I.
THE AMENDED APPLICATION
In the Amended Application the Company represents it is a telecommunication carrier.
Amended Application at 1. The Company asserts it installed equipment associated with various
forms of DSL-based broadband services using a mix of fiber and metallic cable transport in 56
Idaho exchanges. Id. Qwest discloses that its broadband network has data transmission rates of
256 Kbps and higher for subscriber downloads and uploads, which exceeds the required rates of
200,000 bits per second to a subscriber and 125,000 bits per second from a subscriber. Id. at 2.
The Company asserts that 96% of its Idaho subscribers have access to the broadband network. Id.
Qwest invested approximately $39,511,203 in 2018 in qualifying broadband equipment it confirms
is integral to 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
ORDER NO. 34678 2

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
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 has 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 ("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 has reviewed and audited the list of proposed broadband equipment and believes
the identified equipment qualifies for the investment tax credit pursuant to procedural Order No.
28784 and Idaho Code § 63-3029I(3)(b). Staff recommends that the Commission issue an Order
confirming the equipment is qualified broadband equipment and forward the approving Order and
a copy of the Amended Application to the Idaho Tax Commission.
COMMISSION FINDINGS
Having reviewed the Company's Amended Application and Staff's recommendation,
we find that the Company's equipment identified in Case No. QWE-T-20-01 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.
ORDER
IT IS HEREBY ORDERED that the Company's Amended Application for an order
confirming that equipment the Company installed in 2018 is "qualified broadband equipment" is
granted.

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. 34678 3

IT IS FURTHER ORDERED that a copy of this Order and a copy of the Amended
Application be served on the Idaho State Tax Commission.
THIS IS A FINAL ORDER. Any person interested in 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 §§ 61-
626 and 62-619.
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this 28th
day of May 2020.

__________________________________________
PAUL KJELLANDER, PRESIDENT

__________________________________________
KRISTINE RAPER, COMMISSIONER

__________________________________________
ERIC ANDERSON, COMMISSIONER

ATTEST:

_________________________________
Diane M. Hanian
Commission Secretary

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