20240820Final_Order_No_36296.pdf

Office of the Secretary
Service Date
August 20,2024
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF DIRECT ) CASE NO. DCM-T-24-01
COMMUNICATIONS ROCKLAND, INC.'S )
APPLICATION FOR THE 2023 )
BROADBAND EQUIPMENT TAX CREDIT ) ORDER NO. 36296
On May 28, 2024, Direct Communications Rockland, Inc., ("Company") applied for an
order confirming that equipment it installed in 2023 is "qualified broadband equipment" under
Idaho Code § 63-3029I (Income tax credit for investment in broadband equipment)
("Application"). With this Order, we confirm that the installed equipment is "qualified broadband
equipment"under Idaho Code § 63-3029I.
THE APPLICATION
The Company asserted it made certain investments that constituted qualified broadband
equipment it believed were eligible for the broadband tax credit. See Idaho Code§ 63-3029I(3)(b).
Specifically, the Company stated that its net investment in qualifying broadband equipment in
2023 was$2,590,961.36.The Company indicated that its transmission rates range from 25,000,000
bits per second("bps")to a subscriber and 3,000,000 bps from a subscriber. The Company further
indicated that it served 12,162 Idaho customers—with 65% of those being in regulated service
areas and 35%being in unregulated service areas.
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 §
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).
ORDER NO. 36296 1

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.
When the taxpayer applies,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
company's 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 listed equipment met 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 Staffs recommendations, we find the
Company's equipment identified in Case No. DCM-T-24-01 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 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 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 may petition for
reconsideration within twenty-one (21) days of the service date of this Order about any matter
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. 36296 2

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.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 20th day of
August 2024.
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ORDER NO. 36296 3