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 ALBION TELEPHONE COMPANY'S
APPLICATION FOR THE 2024 BROADBAND EQUIPMENT TAX
CREDIT; CASE NO.ALB-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). Idaho Code § 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 to a subscriber and at least
one hundred twenty-five thousand (125,000) bits per second from a subscriber." Idaho Code §
63-3029I(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 that 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 22, 2025, the Commission received an Application from Albion Telephone
Company ("Company") seeking approval of the equipment for the broadband tax credit installed
during the calendar year 2024.
In the Application, the Company represented that the broadband services it offers to its
customers are associated with Digital Subscriber Line, wireless, and fiber-to-the-home
technologies. This is carried out using Fujitsu, Adva, Juniper, and Brocade in the Company's
backbone network and several brands of digital loop carriers, including Adtran and Calix. The
Company asserted that, in 2024, as part of upgrading its network infrastructure, it added 1.2 miles
of copper and duct and 97.14 miles of fiber cable and duct.
The Company confirmed that it offers broadband services to its customers at transmission
rates that range from 25 megabits per second to 10 gigabits per second for both upstream and
downstream transmissions. The Company stated that, during 2024, it added 57 new internet
customers, bringing the total number of its customer base to 3,917, and 99% of its Idaho
subscribers have access to its broadband network. The Company represents that it invested
$2,006,608.58 in 2024 in qualifying broadband equipment that it confirmed is integral to its
broadband network, which equates to a 3%broadband tax credit of$60,198.26.
STAFF REVIEW AND RECOMMENDATION
Staff has reviewed 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 § 63-30291(3)(b). Staff recommends the Commission issue an order confirming the
equipment is qualified broadband equipment and forward the approving order along with a copy
of the original Application to the Idaho Tax Commission.
DECISION MEMORANDUM - 2 - MARCH 25, 2025

COMMISSION DECISION
Does the Commission wish to issue an order confirming the broadband equipment
identified in Case No. ALB-T-25-01 is qualified broadband equipment as defined in Idaho Code
§ 63-3029I(3)(b), and forward the order and Application to the Idaho Tax Commission?
Jo an E. Kalala-Kasanda
Commission Staff
I:\Uti1ity\UDMEM0S\ALB-T-25-01 Decision Memo.docx
DECISION MEMORANDUM - 3 - MARCH 25, 2025