20250513Decision 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: MAY 13, 2025
RE: IN THE MATTER OF INLAND CELLULAR'S APPLICATION FOR THE
APPROVAL OF ITS IDAHO BROADBAND EQUIPMENT TAX CREDIT
FOR THE YEAR 2023; CASE NO. INC-T-24-01.
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 63-30291 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 second to a subscriber and at least one
hundred twenty-five thousand (125,000) bits per second 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 - MAY 13, 2025

THE APPLICATION
On August 14, 2024, the Commission received an Application from Inland Cellular LLC
("Company"), seeking Commission determination that the broadband equipment installed during
the calendar year 2023 meets the statutory definition of qualified broadband equipment. On April
25, 2025, the Company submitted an addendum to its Application, updating its Idaho broadband
equipment list.
The Company represented that it offers the following broadband services to its customers:
Evolution Data Optimized ("EVDO")' mobile data, fixed, and fiber LTE2 mobile data. These
services are offered using networks such as Mobile EVDO and LTE data, fixed wireless, fiber to
the premises("FTTP"), fiber backhaul,microwave backhaul, and mmWave3 (or millimeter wave).
The Company disclosed that the transmission rates it offers to its customers depend on the
type of network used by the customer. Thus,the EVDO mobile data provides a transmission speed
rate of 3 Mbps download and 1 Mbps upload; the LTE mobile data provides 10 Mbps download
and 3 Mbps upload; the FTTP provides a transmission speed rate that ranges from 100 Mbps to 1
Gbps; the fixed wireless network provides the transmission speed rate that ranges from 3 Mbps
download / 1 Mbps upload to 100 Mbps download / 20 Mbps upload; and finally the microwave
backhaul network provides transmission rate that ranges from 50 Mbps to 3 Gbps. The mmWave
provides a transmission rate that ranges from 250 Mbps to 1 Gbps. All of these transmission speed
rates exceed the minimum statutory speed requirements under Idaho Code § 63-3029I. The
Company confirmed that it served 22,717 subscribers, or 12.76 percent, of the potential available
178,047 customers.
The Company reported that it invested $424,942.42 in 2023 in qualifying
broadband equipment. The Company confirmed that all the purchased equipment listed is
necessary for the provision of broadband service and is an integral part of its broadband network.
Pursuant to Idaho Code § 63-3029I (2), the credit permitted for the qualified investment in
qualified broadband equipment in Idaho is three percent (3%), and the Company is entitled
to a tax credit in the amount of$12,748.27.
EVDO is a telecommunications standard for the wireless transmission of data through radio signals. EVDO is 3G
mobile broadband technology.
2 Long Term Evolution(LTE). This is a standard for wireless high-speed data transmission.
3 Millimeter wave is defined as the Extremely High Frequency(EHF)range from 30GHz to 300GHz,so named
because those are the frequencies where wavelengths get as short as one millimeter.
DECISION MEMORANDUM - 2 - MAY 13, 2025

STAFF REVIEW AND RECOMMENDATION
Staff reviewed the list of proposed broadband equipment and believes the identified
equipment qualifies for the investment tax credit pursuant to Procedural Order No. 35297 and
Idaho Code § 63-3029I(3)(b). Staff, therefore, recommends that the Commission issue an Order
confirming the equipment is qualified broadband equipment and forward the approved Order along
with a copy of the original Application to the Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirming the broadband equipment
identified in Case No. INC-T-24-01 is qualified broadband equipment as defined in Idaho Code §
63-30291(3)(b) and forward it to the Idaho Tax Commission?
�l
AohanKalala-Kasanda
Commission Staff
I:\Uti1ity\UDMEM0S\INC-T-24-01 Decision Memo.docx
DECISION MEMORANDUM - 3 - MAY 13, 2025