20260521Staff Comments.pdf

RECEIVED
May 21, 2026
JEFFREY R. LOLL IDAHO PUBLIC
DEPUTY ATTORNEY GENERAL UTILITIES COMMISSION
IDAHO PUBLIC UTILITIES COMMISSION
PO BOX 83720
BOISE, IDAHO 83702
[phone]
IDAHO BAR NO. 11675
Attorney for the Commission Staff
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF CENTURYTEL OF )
IDAHO, INC.'S APPLICATION FOR THE ) CASE NO. CEN-T-25-01
IDAHO BROADBAND TAX CREDIT FOR )
THE YEAR 2022 )
COMMENTS OF THE
COMMISSION STAFF
COMMISSION STAFF ("STAFF") OF the Idaho Public Utilities Commission
("Commission"),by and through its attorney of record, Jeffrey R. Loll, Deputy Attorney General,
submits the following comments.
BACKGROUND
On December 2,2025, CenturyTel of Idaho, Inc. ("Company") applied to the Commission
for an order confirming that equipment the Company installed during 2022 is"qualified broadband
equipment" under Idaho Code § 63-3029I (Income tax credit for investment in broadband
equipment) ("Application").
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
STAFF COMMENTS 1 MAY 21, 2026

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 an order from the Commission
confirming that the installed equipment meets the statutory definition of qualified broadband
equipment. Idaho Code § 63-3029I(4)Commission Order Nos. 35297 and 36970. Prior to making
such a determination, the Commission requires applicants to submit "a specific list of the
equipment or types of equipment that the applicant is requesting that the Commission determine
is `qualified broadband equipment' as defined in Idaho Code § 63-3029I(3)(b)," and to "[1]ist the
brand, manufacturer, model numbers of the installed equipment, number of items, and total cost."
Order No. 35297, Attachment A. The Commission has emphasized that its "role in applications
for broadband equipment tax credit is limited to `confirming that the installed equipment is
qualified broadband equipment"' and does not extend to approving costs for non-equipment
project expenditures for credit. Order No. 36970 (quoting 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 Company represents that during 2022; it offered broadband services to 5,368 out of
5,726 Idaho living units it billed (94 percent). Application, Exhibit 2. The Company represents
that it uses various forms of digital subscriber line-based equipment, including asymmetric digital
subscriber line and very high bitrate digital subscriber line technology, to deliver service over a
mix of fiber optic and metallic cable. Application at 1. The Company states that it provides
broadband services to its customers at minimum transmission rates of 500,000 bits per second
("bps") for downloads and 250,000 bps for uploads. Id.
The Company reported investing $695,937 in qualifying broadband equipment during
2022. Application at 1.
STAFF ANALYSIS
Staff reviewed the Application and documentation submitted to the Commission. As
part of the review process, Staff audited the list of broadband equipment submitted by the
Company. During the review, Staff was unable to verify that the broadband equipment listed
STAFF COMMENTS 2 MAY 21, 2026

complied with the requirements of Commission Order Nos. 35297and 36970, which requires
the Company to provide the brand, manufacturer, model numbers of the installed equipment,
number of items, and total cost of the listed broadband equipment. The Company did not
provide a brand, manufacturer, or model number for any of the items included in its list.
Application, Exhibit No. 1.
On December 11, 2025, Staff requested the missing information through production
requests. In its response on January 2, 2026, the Company provided a list that was identical
to the one originally submitted in the Application without including the missing required
information. Company's Response to Staff Production Request No. 1. Staff was unable to
verify any of the items in the list as qualifying broadband equipment pursuant to Idaho
Code § 63-3029I(3)(b) and Commission Order Nos. 35297 and 36970.
The Company reported that it invested$695,937 in qualifying broadband equipment
in 2022. Staff was unable to verify the items listed in the spreadsheet submitted with the
Application.
STAFF RECOMMENDATION
Staff recommends that the Commission issue an order denying the Company's
Application.
Respectfully submitted this 21 st day of May 2026.
Jeffrey R. Loll
Deputy Attorney General
Technical Staff: Jon Kruck, Allison Moore
I:\Utility\UMISC\COMMENTS\CEN-T-25-01 Comments.docx
STAFF COMMENTS 3 MAY 21, 2026

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 21st DAY OF MAY 2026, SERVED
THE FOREGOING COMMENTS OF THE COMMISSION STAFF, IN CASE NO.
CEN-T-25-01, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING:
Company:
TONI L. MINCIC, SR. DIRECTOR, TAX
931 14TH STREET
DENVER, CO 80202
E-MAIL:
[e-mail]
PATRICIA JORDA9, SECRETARY
CERTIFICATE OF SERVICE