20250819Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JOHAN E. KALALA-KASANDA, COMMISSION STAFF
JEFFREY R. LOLL,DEPUTY ATTORNEY GENERAL
DATE: AUGUST 19, 2025
RE: IN THE MATTER OF SAFELINK INTERNET LLC DBA ANTHEM
BROADBAND's APPLICATION FOR THE 2015-2023 BROADBAND
EQUIPMENT TAX CREDIT; CASE NO. SLI-T-25-02.
On May 29, 2025, SafeLink Internet LLC, doing business as Anthem Broadband
("Company"), applied to the Idaho Public Utilities Commission ("Commission") seeking
approval for a broadband tax credit for the equipment installed during the 2015-2023 calendar
years. On June 27, 2025, the Company filed an addendum to its Application ("Application
Addendum"), providing additional documentation in support of its Application.
THE BROADBAND EQUIPMENT TAX CREDIT
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
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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-
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.
THE APPLICATION
In the Application, the Company stated that it is an Idaho-based entity dedicated to
expanding and improving broadband connectivity across the state. Application Addendum at 1.
The Company noted that it provides both wireless internet and fiber-optic services, delivering
reliable, high-speed internet access to businesses and residents, including those in rural and
underserved areas. Id. The Company represented that it uses both Fiber-To-The-Home and
Fixed Wireless technologies to deliver these services. Id. The Company stated that its network
expansion continues to support economic growth and digital inclusion in the state. Application
Id.
The Company represented that, as of December 31, 2023, it served 13,684 Idaho
customers and 4,930 customers outside of Idaho,totaling 18,614,with Idaho representing 73.5%
of the network. Application Addendum Exhibit A. The Company stated that from 2015 to 2023,
the total number of customers grew from 10,258 to 18,614. Id.
The Company provided the transmission rates it offered to customers from 2015 to 2023.
Application Addendum Exhibit C. The Company stated that, during this period, the lowest
transmission rates for broadband subscribers consistently met or exceeded state requirements.
Id. The Company reported that the lowest download speed increased from 1 megabit per second
("Mbps") to 15 Mbps, while the lowest upload speed rose from 0.25 Mbps to 3 Mbps. Id.
Additionally, the Company indicated that in 2019, its network's capacity expanded significantly
to reach up to 1000 Mbps for both download and upload speeds. Id. During this period, the
average lowest download speed was 9,000 kilobits per second("Kbps"), and the average lowest
upload speed was 2,025 Kbps. Id. The Company maintained that the consistent and improving
speeds demonstrate its network's ability to deliver reliable, high-performance broadband
service.
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The Company represented that, from 2015 to 2023, it invested $16,409,827.71 in
qualifying broadband equipment, which amounts to a 3% broadband tax credit totaling
$492,294.83. Application Addendum at 1. The Company stated that these investments include
essential infrastructure and equipment necessary for the expansion and enhancement of
broadband services. 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. SLI-T-25-02 is qualified broadband equipment as defined in Idaho
Code § 63-30291(3)(b), and forward the order and Application to the Idaho Tax Commission?
Vohan ."Klalala-Kasanda
Commission Staff
I:AUti1ity\UDMEM0S\SLI-T-25-02 Decision Memo.docx
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