20240606Final_Order_No_36215.pdf

Office of the Secretary
Service Date
June 6,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CENTURYTEL OF ) CASE NO. CEN-T-23-02
IDAHO,INC.'S APPLICATION FOR THE )
2022 BROADBAND EQUIPMENT TAX )
CREDIT ) ORDER NO. 36215
On December 27, 2023, CenturyTel of Idaho, Inc., ("Company") applied to the Idaho
Public Utilities Commission ("Commission") for an order confirming that equipment it installed
in 2022 is "qualified broadband equipment"under Idaho Code § 63-3029I (income tax credit for
investment in broadband equipment) ("Application"). With this Order, we deny the Company's
Application. The Company failed to provide sufficient and required information for the
Commission to find that the installed equipment in question is "qualified broadband equipment"
in accordance with Commission Order No. 35297.
THE APPLICATION
The Company asserted it made certain investments that constituted qualified broadband
equipment. See Idaho Code § 63-3029I(3)(b). Specifically, the Company stated that its net
investment in qualifying broadband equipment in 2022 was $517,170. The Company indicated
that its lowest transmission rates were 500,000 and 250,000 bits per second("bps") for downloads
and uploads, respectively. The Company further indicated that approximately 94% of its Idaho
subscribers had access to the broadband network in 2022. Finally, the Company stated that it
believed that the equipment listed in its Application was necessary to the provisioning of
broadband service and qualified the Company for the broadband 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
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 §
ORDER NO. 36215 1

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. 28784.1
That Order specifies the information the taxpayer must include in the broadband tax credit
application. In 2021, in Case No. GNR-T-21-10, the Commission modified the informational
requirements set forth by Order No. 28784. See Order No. 35297. In this order, the Commission
stated that a qualifying applicant would need to"[p]rovide a specific list of the equipment or types
of equipment that the applicant is requesting that the Commission determine is `qualified
broadband equipment' as defined in Idaho Code § 63-3029I(3)(b)." Order No. 35297 at 6.
Additionally, Order No. 35927 stated that a compliant applicant would need to "[l]ist the brand,
manufacturer, model numbers, of the installed equipment, number of items, and total cost."Id.
When an applicant files an application requesting the tax credit in question, Commission
Staff ("Staff") reviews it to determine whether the listed equipment meets the definition of
"qualified broadband equipment" in accordance with Commission mandates. 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 and previous
Commission orders. Based on its review, Staff was unable to determine whether the listed
equipment met the statutory criteria and is "qualified broadband equipment"that is eligible for the
tax credit. In its May 14, 2024, Decision Memorandum, Staff thus recommended the Commission
deny the Company's Application. Staff stated that the Company repeatedly failed to respond to
audit requests and its Application was not in compliance with the requirements of Order No.
35297. Staff argued the Company had failed to provide required information about the equipment,
including the brand, model number, and manufacturer. Staff described a timeline of repeated
requests from Staff to the Company seeking this information.Despite Staff s efforts,the necessary
information was never provided by the Company. Therefore, Staff recommended a denial of the
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. 36215 2

Application. Staff stated that the Company could resubmit a new application after it made
sufficient efforts to ensure that such an application would be compliant with Commission
standards.
COMMISSION FINDINGS
Having reviewed the Company's Application and Staffs recommendations, we rind the
Company's Application failed to properly describe the broadband equipment in question—thus
failing to comply with the requirements of Order No. 35927. Accordingly, it is inappropriate for
the Commission to issue an order confirming the Company's equipment is "qualified broadband
equipment"in compliance with Order No. 35927. The Company's Application is denied. As noted
by Staff, the Company may bring this matter to the Commission when the Company can provide
the required information.
ORDER
IT IS HEREBY ORDERED that the Company's Application for an order confirming that
equipment it installed in 2022 is "qualified broadband equipment" is denied.
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 about 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.Idaho Code §§ 61-626 and 62-619.
ORDER NO. 36215 3

DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 6th day of
June 2024.
AAA-
ERIC ANDERSON, PRESIDENT
R. HAMMOND JR., COMMISSIONER
G
EDWARD LODGE, QOMMISSIONER
ATTEST:
VWc4 Ba#Waakhe
Commission Secretary
I ALegal\TELECOWCENT2302_Final_md.docx
ORDER NO. 36215 4