20260407Decision 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: APRIL 7, 2026
SUBJECT: IN THE MATTER OF ALBION TELEPHONE COMPANY'S
APPLICATION FOR THE 2025 BROADBAND EQUIPMENT TAX
CREDIT; CASE NO.ALB-T-26-01.
On January 12, 2026, Albion Telephone Company, dba ATC Communications
("Company") applied to the Idaho Public Utilities Commission("Commission") seeking approval
of the equipment for the broadband tax credit installed during the calendar year 2025
("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 200,000 bits per seconds to a subscriber and at least 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).
To be eligible for the tax credit, the taxpayer must obtain from the Commission an
order confirming that the installed equipment meets the statutory definition of qualified
DECISION MEMORANDUM - 1 - APRIL 7, 2026

broadband equipment. Commission Order Nos. 35297 and 36970 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
In the Company's response to Staff s production request, 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 and
10,000,000,000 bits per second to subscribers and 10,000,000,000 bits per second from
subscribers. These rates exceed the minimum statutory speed requirements as set forth
in Idaho Code § 63-3029I. The Company confirmed that during 2025, it served 3,927
Broadband customers and 141 new fiber-served locations in Idaho, with 99% of these
customers accessing the broadband network located in the Company's regulated service
areas. Id.
The Company reported investing $787,747.39 in qualifying broadband
equipment in 2025, which would result in a 3% broadband tax credit of$23,632.42
Id.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed the list of proposed broadband equipment and the Company's
Response to discovery requests, in which the Company clarified that it provides
broadband service directly to customers in Idaho and that the services offered are through
copper and fiber. Company Response to Staff Production Request No. 1. Based on its
review, Staff believes the identified equipment qualifies for the investment tax credit
pursuant to Commission Order Nos. 35297 and 36970 and Idaho Code § 63-3029I(4).
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.
DECISION MEMORANDUM - 2 - APRIL 7, 2026

COMMISSION DECISION
Does the Commission wish to issue an order confirming the broadband
equipment identified in Case No. ALB-T-26-01 is qualified broadband equipment as
defined in Idaho Code § 63-3029I(3)(b), and forward the order and Application to the
Idaho Tax Commission?
Jon ck
Commission Staff
I:\Utility\UDMEMOS\ALB-T-26-01Decision Memo.docx
DECISION MEMORANDUM - 3 - APRIL 7, 2026