20250624Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JOHAN E. KALALA-KASANDA, COMMISSION STAFF
ERIKA K. MELANSON,DEPUTY ATTORNEY GENERAL
DATE: JUNE 24, 2025
RE: IN THE MATTER OF DIRECT COMMUNICATIONS ROCKLAND
INC.'s APPLICATION FOR THE 2024 BROADBAND EQUIPMENT TAX
CREDIT; CASE NO. DCM-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 § 63-30291 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 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 Idaho Public Utilities Commission ("Commission") an order confirming that
the installed equipment meets the statutory definition of qualified broadband equipment.
Commission Order No. 35297 and Idaho Code § 63-30291(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 - JUNE 24, 2025

THE APPLICATION
On April 14, 2025, Direct Communications Rockland, Inc. ("Company") applied to the
Commission seeking approval of the equipment for the broadband tax credit installed during
the calendar year 2024.
In the Application, the Company stated that it provides basic local exchange service,
broadband telecommunications service,and other telecommunications services in Idaho. Application
at 1. The services offered include Digital Subscriber Line and Ethernet technologies, which are
delivered using both fiber and copper wireline methods. Application at Exhibit A.
The Company disclosed that it provides broadband services to its customers at
transmission rates of 25,000,000 bits per second to subscribers and 3,000,000 bits per second
from subscribers.' Id. These rates exceed the minimum statutory speed requirements as set
forth in Idaho Code § 63-3029I. The Company confirmed that during 2024, it served 12,443
broadband customers,with 65% of these customers located in the Company's regulated service
areas and 35% in non-regulated service areas. Id.
The Company reported investing $7,246,517.31 in qualifying broadband equipment in
2024, which resulted in a 3% broadband tax credit of$217,395.52. Id.
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 Commission Order No. 35297 and
Idaho Code § 63-3029I(3)(b). Staff recommends that the Commission issue an order
confirming that the equipment is qualified broadband equipment and forward the approving
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. DCM-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?
Anything else?
oh#EKalal�al-Kasanda i
Commission Staff
L\Uti1ity\UDMEM0S\DCM-T-25-01 Decision Memo.docx
' This is equivalent to 25 megabits per second to a subscriber and 3 megabits per second from a subscriber or
25mgps/3mgps.
DECISION MEMORANDUM - 2 - JUNE 24, 2025