20240529Final_Order_No_36198.pdf

Office of the Secretary
Service Date
May 29,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CUSTER TELEPHONE ) CASE NO. CTB-T-24-01
BROADBAND SERVICES LLC'S )
APPLICATION FOR THE 2023 )
BROADBAND EQUIPMENT TAX CREDIT ) ORDER NO. 36198
On March 25, 2024, Custer Telephone Broadband Services LLC ("Company") applied for
an order confirming that equipment it installed in 2023 is "qualified broadband equipment"under
Idaho Code § 63-3029I("Application"). With this Order,we confirm that the installed equipment
identified in the Application is "qualified broadband equipment"under Idaho Code § 63-3029I.
THE APPLICATION
The Company asserted that it provides basic local exchange service, broadband
telecommunications service, and other telecommunications services in Idaho. The Company
represented that the transmission rate of its broadband network to its lowest subscribed rate is 512
Kilobytes ("Kb") per second to the subscriber, and 128 Kb from the subscriber. The Company
stated that its lowest advertised rate is 10 Megabytes ("Mb")per second to a subscriber, and 1 Mb
per second from a subscriber. The Company stated that its highest advertised rate is 1 Gigabyte
per second to a subscriber, and 200 Mb per second from a subscriber. The Company further
indicated that it served 1,950 customers out of an estimated 3,100 possible customers in Salmon,
Idaho.
The Company disclosed that it invested approximately $1,502,924.491 in "qualifying
broadband equipment"during 2023 eligible for the investment tax credit authorized by Idaho Code
§ 63-3029I. Finally, the Company certified the equipment listed in its Application "qualifies for
the tax credit"under Idaho Code § 63-3029I.
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 the installed
1 Staff s decision memorandum in the case indicates that the Company disclosed that it invested approximately
$21,502,924.49. This is a typographical error. The Application indicates that the Company invested only
$1,502,924.49.
ORDER NO. 36198 1

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 and "is capable of transmitting signals at a rate of at
least [200,000 bps] to a subscriber and at least [125,000 bps] from a subscriber" (Idaho Code §
63-3029I(3)(b)); and (2) is primarily used to provide services in Idaho to public subscribers. See
Idaho Code § 63-3029I(3)(b)(vii). 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 issued Order No. 28784.2
That order specifies the information the taxpayer must include in the broadband tax credit
application. In Case No. GNR-T-21-10,the Commission modified the informational requirements
set forth by Order No. 28784. See Order No. 35297.
When the taxpayer applies, Commission Staff ("Staff') reviews the application 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 § 63-3029I. Based on its
review, Staff believed that the equipment listed in the Company's Broadband Equipment List
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 recommendations, we find the
Company's equipment identified in Case No. CBT-T-24-01 is "qualified broadband equipment"
eligible for the tax credit under Idaho Code § 63-30291. Accordingly, it is appropriate for the
Commission to issue this Order confirming the Company's equipment is "qualified broadband
z 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. 36198 2

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 Application for an order confirming that
equipment it installed in 2023 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 regarding any matter decided therein. 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 29t' day of
May 2024.
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ERIC NDE SON, PRESIDENT
J R. HAMMOND JR., COMMISSIONER
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EDWARD LODGE, COMY4SSIONER
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Commission Secretary
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ORDER NO. 36198 3