20251118Decision Memo.pdf

DECISION MEMORANDUM
TO: COMMISSIONER LODGE
COMMISSIONER HAMMOND
COMMISSIONER HARDIE
COMMISSION SECRETARY
COMMISSION STAFF
LEGAL
FROM: JON KRUCK, COMMISSION STAFF
JEFFREY R. LOLL,DEPUTY ATTORNEY GENERAL
DATE: NOVEMBER 18, 2025
SUBJECT: IN THE MATTER OF POTLATCH TELEPHONE COMPANY d/b/a TDS
TELECOM'S APPLICATION FOR THE 2024 BROADBAND EQUIPMENT
TAX CREDIT; CASE NO. POT-T-25-01.
On August 15,2025,Potlach Telephone Company dba TDS Telecom("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").
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 § 63-3029I 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).
The equipment must be primarily used to provide services to subscribers in Idaho to
qualify for the credit. Idaho Code § 63-3029I(3)(b)(vii).
DECISION MEMORANDUM - 1 - NOVEMBER 18, 2025

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.
THE APPLICATION
Commission Staff ("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, which
corrected the tables in an amended application it filed on October 21, 2025 ("Amended
Application").
In the Application(in sections unchanged by the Amended Application), the Company
stated that it provides Digital Subscriber Line(DSL) services and Fiber To The Home(FTTH)
in Idaho. Application at 1. The Company disclosed that it provides broadband services to its
customers at transmission rates of a minimum of 1,000,000 bits per second to subscribers and
256,000 bits per second from subscribers.Application at 2. These rates exceed the minimum
statutory speed requirements as set forth in Idaho Code § 63-3029I. The Company
confirmed that during 2024, 100% of customers accessing the broadband network located
in the Company's regulated service areas were served and that customers located outside
of Idaho received no benefit from the installed equipment. Id.
In an attachment to the Amended Application, the Company reported investing
$273,540.30 in qualifying broadband equipment in 2024, which resulted in a 3%
broadband tax credit of$8,206.21. 2024 Potlach Investment Revised 102125 Confidential
at 1.
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 listed in the Amended Application is
DECISION MEMORANDUM - 2 - NOVEMBER 18, 2025

qualified broadband equipment and forward the approving order, along with a copy of the
Application and Amended Application, to the Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an order confirming the broadband
equipment identified in the Amended Application of Case No. POT-T-25-01 is a
qualified broadband equipment as defined in Idaho Code § 63-3029I(3)(b), and forward
the order, Application, and Amended Application to the Idaho Tax Commission?
Jon Kmck
Commission Staff
I:\Utility\UDMEMOSTOT-T-25-01 Decision Memo.docx
DECISION MEMORANDUM - 3 - NOVEMBER 18, 2025