20250807Final_Order_No_36708.pdf

Office of the Secretary
Service Date
August 8,2025
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CUSTER TELEPHONE ) CASE NO. CTB-T-25-01
BROADBAND SERVICES LLC'S )
APPLICATION FOR THE 2024 BROADBAND )
EQUIPMENT TAX CREDIT ) ORDER NO. 36708
On April 2, 2025, Custer Telephone Broadband Services LLC ("Company") applied to the
Idaho Public Utilities Commission ("Commission") for an order confirming that equipment the
Company installed during 2024 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 BROADBAND EQUIPMENT TAX CREDIT
In 2001,the Idaho Legislature enacted House Bill 377 authorizing an income tax credit for
the installation of qualifying broadband infrastructure in Idaho. Idaho Code § 63-3029B. Section
63-3029I allows a taxpayer to receive an income tax credit for eligible broadband equipment
installed during a calendar year. Qualified broadband equipment is defined as those network
facilities "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 § 63-3029I(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 income tax credit, the taxpayer must obtain an order from the
Commission confirming that the installed equipment meets the statutory definition of qualified
broadband equipment. Commission Order No. 35297; Idaho Code § 63-3029I(4). Once the
Commission has determined the installed equipment is eligible for the income tax credit, the
Commission will issue an order granting the application, and the Commission will forward the
order and application to the Idaho Tax Commission.
THE APPLICATION
The Company stated that it provides basic local exchange service, broadband
telecommunications service, and other telecommunications services in Idaho. Application at 1.
ORDER NO. 36708 1

The broadband services the Company offers to its customers are associated with cable modem
high-speed internet,fixed wireless,and Fiber-to-the-Home technologies.Application at Exhibit A.
The Company described its network as a fiber optic-fed cable system that provides cable modem
service, fiber optic transport electronics, fiber optic backbone, distribution cable, and a fixed
wireless network. Id.
The Company confirmed that it offers broadband services to its customers at the following
transmission rates: (i) the lowest subscribed rate is 1.5 Megabits per second ("Mbps") to a
subscriber and 512 Kilobits per second from a subscriber; (ii)the lowest advertised rate is 50 Mbps
to a subscriber and 50 Mbps from a subscriber; and (iii) the highest advertised rate is I gigabit to
and from subscribers.Id. The Company states that these rates exceed the minimum statutory speed
requirements under Idaho Code§ 63-3029I.The Company confirmed that during 2024,it provided
broadband services to 2,011 customers out of an estimated 4,117 potential customers in Salmon,
Idaho, representing 48%. Id.
The Company reported that it invested $5,978,746 in 2024 in qualifying broadband
equipment, resulting in a 3% broadband tax credit totaling $179,362. Id. The Company asserted
that all of the purchased equipment listed is necessary for providing broadband service and is an
integral part of its broadband network.Id.
STAFF REVIEW
Commission Staff("Staff') reviewed the Company's Application under Idaho Code § 63-
3029I and Order No. 35297. Staff Memo at 3. Based on its review, Staff believed that the listed
equipment met the statutory criteria and was qualified broadband equipment that was eligible for
the tax credit. Id. Staff 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 the order to the Idaho State Tax Commission.Id.
COMMISSION FINDINGS
Having reviewed the Company's Application and Staffs recommendations, the
Commission finds that the Company's equipment identified in Case No. CTB-T-25-01 is qualified
broadband equipment eligible for the tax credit under Idaho Code § 63-3029I. The Commission
makes no findings regarding the costs of the installed broadband equipment or other expenses.
ORDER NO. 36708 2

ORDER
IT IS HEREBY ORDERED that the Company's Application for an order confirming that
equipment it installed in 2024 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 regarding any matter
decided herein.Within seven(7)days after any person has petitioned for reconsideration,any other
person may cross-petition for reconsideration. See Idaho Code §§ 61-626 and 62-619.
DONE by order of the Idaho Public Utilities Commission at Boise, Idaho this 71h day of
August 2025.
G
EDWARD LODGE, COM SSIONER
R. HAMMOND JR., COMMISSIONER
HARME, c6mmisSIONER
ATTEST:
M n'013afri"?-kahez
Commission Secretary
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ORDER NO. 36708 3