20250325Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JOHAN E. KALALA-KASANDA, COMMISSION STAFF
CHRIS BURDIN,DEPUTY ATTORNEY GENERAL
DATE: MARCH 25, 2025
RE: IN THE MATTER OF SYRINGA NETWORKS,LLC's APPLICATION
FOR THE 2024 BROADBAND EQUIPMENT TAX CREDIT;
CASE NO. SZ9-T-25-01.
BACKGROUND
In 2001, House Bill 377 was enacted, authorizing income tax credit for the installation of
qualifying broadband infrastructure in Idaho. Idaho Code § 63-3029B(3)(a)(ii). In particular,
Section 63-3029I allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is defined as equipment "capable of transmitting signals
at a rate of at least two hundred thousand (200,000) bits per seconds (bps) to a subscriber and at
least one hundred twenty-five thousand (125,000) bps from a subscriber." Idaho Code § 63-
329I(3)(b). If the equipment is installed by a telecommunications carrier, it must also be
"necessary to the provision of broadband services and an integral part of a broadband network."
Idaho Code § 63-3029I(3)(b)(i). To be eligible for the tax credit, the taxpayer must obtain from
the Commission an order confirming that the installed equipment meets the statutory definition of
qualified broadband equipment. Commission Order No. 35297 and Idaho Code § 63-3029I(4).
Once the Commission has determined the installed equipment is eligible for the broadband
equipment tax credit, an order along with the original Application is forwarded to the Idaho Tax
Commission.
DECISION MEMORANDUM - 1 - MARCH 25, 2025

THE APPLICATION
On January 28, 2025, the Commission received an Application from Syringa Networks,
LLC. ("Syringa"or"Company"), seeking approval of equipment for the broadband tax credit that
was installed and put into operation during the calendar year 2024.
In the Application, Syringa lists the capital investments associated with its fiber optic
facilities and equipment connected with its broadband network. The Company stated that"the list
of installed equipment is necessary to the provision of broadband service and is an integral part of
the broadband networks." The Company represented that the broadband services it offers to its
customers are associated with Ethernet, Internet, Voice, Colocationl, and SD-WAN2
Technologies.
The Company disclosed that its broadband network transmits data to its customers at the
minimum upload and download speed rate of 1.5 megabits per second (Mbps) or 12,000,000 bits
per second for both upload and download data transmission. This rate meets the statutory
requirements pursuant to Idaho Code § 63-3029I. In addition, the Company stated that, as of
December 31, 2024, it provided services to approximately 700 Idaho customers.
The Company represents that it has invested $5,648,030.75 in 2024 in qualifying
broadband equipment that is integral to its broadband network. This amounts to a broadband
investment tax credit of$169,440.92, which is 3% of the total investment made in 2024.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed and audited the list of proposed broadband equipment and believes the
identified equipment qualifies for the investment tax credit pursuant to Commission Order No.
35297 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
along with a copy of the Application to the Idaho Tax Commission.
1 Colocation is the strategy of businesses deploying their own IT equipment but hosting it in data centers run by
third-party vendors.Using colocation is a convenient way for businesses to access the benefits of private data
centers without the challenges of running them.
z A Software-Defined Wide Area Network(SD-WAN)is a wide area network that uses software-defined networking
technology,such as communicating over the Internet using overlay tunnels,which are encrypted when destined for
internal organization locations.
DECISION MEMORANDUM - 2 - MARCH 25, 2025

COMMISSION DECISION
Does the Commission wish to issue an order confirming the equipment identified in Case
No. SZ9-T-25-01 is qualified broadband equipment as defined in Idaho Code § 63-3029I(3)(b)
and forward the order to the Idaho Tax Commission?
�X"
ohan E. Kalala-Kasanda
Commission Staff
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DECISION MEMORANDUM - 3 - MARCH 25, 2025