20251118Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JON KRUCK, COMMISSION STAFF
ERIKA K. MELANSON,DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 18, 2025
SUBJECT: IN THE MATTER OF TDS METROCOM,LLC'S APPLICATION FOR
THE 2024 BROADBAND EQUIPMENT TAX CREDIT; CASE NO. TML-
T-25-01.
BACKGROUND
In 2001, House Bill 377 was enacted, authorizing an 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
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 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 § 63-3029I(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 - NOVEMBER 18, 2025

THE APPLICATION
On August 15, 2025, TDS Metrocom, LLC ("Company") applied to the
Commission seeking approval of the equipment for the broadband tax credit installed
during the 2024 calendar year. Staff reviewed the documentation submitted in the
Application and identified several line items that are not qualified broadband
equipment as set forth in Idaho Code § 63-3029I(3)(b). Staff contacted the Company,
and corrections were made to the tables, and an Amended Application was filed on
October 22, 2025.
In the Amended Application, the Company stated that it provides broadband service
directly to customers in Idaho. Application at 2. The services are offered through FTTP
(Fiber). Id. at 1. The Company disclosed that it provides broadband services to its
customers at transmission rates of a minimum of 200,000,000 bits per second to
subscribers and 200,000,000 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 105,187 broadband customers in Idaho,
with 100%of these customers accessing the broadband network located in the Company's
regulated service areas. Id.
The Company reported investing $44,846,201.93 in qualifying broadband
equipment in 2024, which resulted in a 3% broadband tax credit of$1,345,386.06. Id.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the list of proposed broadband equipment and believes the
identified equipment in the Amended Application 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 a
qualified broadband equipment and forward the approving order, along with a copy of
the Original and Amended Application, to the Idaho Tax Commission.
DECISION MEMORANDUM - 2 - NOVEMBER 18, 2025

COMMISSION DECISION
Does the Commission wish to issue an order confirming the broadband
equipment identified in the Amended Application in Case No. TML-T-25-
01 is a qualified broadband equipment as defined in Idaho Code § 63-3029I(3)(b),
and forward the order and Amended Application to the Idaho Tax Commission?
Jon Kruck
Commission Staff
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DECISION MEMORANDUM - 3 - NOVEMBER 18, 2025