20260827Staff Comments.pdf

RECEIVED
August 27, 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 CABLE ONE, INC.'S )
APPLICATION FOR BROADBAND TAX ) CASE NO. GNR-T-26-04
CREDIT CERTIFICATION FOR 2025 )
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 May 1, 2026, Cable One, Inc. ("Company") applied to the Commission for an order
confirming that equipment the Company installed during 2025 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
subscriber." Idaho Code § 63-3029I(3)(b). If the equipment is installed by a telecommunications
STAFF COMMENTS 1 AUGUST 27, 2026

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§ 63-30291(3)(b)(vii).
To be eligible for the tax credit,the taxpayer must obtain an order from the Commission to
confirm that the installed equipment meets the statutory definition of qualified broadband
equipment. Commission Order No. 35297 and Idaho Code § 63-30291(4). 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 § 63-30291(3)(b)," and to "[l]ist the brand,
manufacturer, model numbers of the installed equipment, number of items, and total cost." Order
No. 35297, Attachment A. 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.
STAFF ANALYSIS
Staff reviewed the Company's Application for the Idaho Broadband Equipment Tax Credit
for investments made during calendar year 2025. The Company represents that it offers high-
speed data broadband services to its customers at a minimum transmission rate of 100 megabits
per second and a maximum transmission rate of 2 gigabits per second through a hybrid of coaxial
cable and fiber. Application at 2. The Company states that it serves a total of 232,098 Idaho
customers and estimates that 98.2% of its customers access its broadband network. Id. The
Company affirms that during 2025, it made investments in Idaho that constitute "qualified
broadband equipment"under Idaho Code § 63-3029I(3)(b). Id. The Company reports investing
$49,518,578 in qualified broadband equipment during 2025. Application, Exhibit B.
After reviewing the initial Application, Staff was unable to verify the assets listed in the
Application. Staff propounded production requests to obtain additional information to determine
if the list of equipment and costs included in the Company's Application qualified for the
Broadband Equipment Tax Credit authorized under Idaho Code § 63-3029I. In the Company's
response to Staff Production Request No. 1,the Company provided a list of broadband equipment
and assets in an Excel format. Order Nos. 35297 and 36970 state that the list must include the
brand, manufacturer, model number, quantity, and total cost. Staff was able to verify some of the
STAFF COMMENTS 2 AUGUST 27, 2026

assets listed in the spreadsheet as broadband equipment. Staff was unable to verify the items that
had physical addresses, installation costs, and projects numbers as broadband equipment.
In the Company's response to Production Request No.2,it stated that labor costs associated
with broadband equipment installation were included in the cost of each asset listed and allocated
to each item based on relative cost. Additionally, the Company stated that during a previous
broadband credit application process, it was advised to include labor costs in the asset cost basis,
consistent with Generally Accepted Accounting Principles ("GAAP"). Response to Production
Request No. 2. Staff has no record of communication,through email or phone,with the Company,
and the alleged advice is inconsistent with Idaho Code § 63-3029I and Order Nos. 28784, 35297,
and 36970. Staff is also unclear about the reference to GAAP as GAAP is enforced by the
Securities and Exchange Commission and only applies to publicly traded companies and its public
reporting requirements. GAAP does not apply to any rule or statute enforced by the Idaho Public
Utilities Commission or the Idaho State Tax Commission, nor does it apply to the legislatures
intent to provide tax credits for specific equipment.
Staff reviewed the Company's Application under Idaho Code § 63-3029I and Commission
Order Nos. 35297, 28784 and 36970. Based on its review, Staff was unable to determine if the
assets listed in the Company's Application is qualified broadband equipment eligible for the tax
credit. The Company has not provided sufficient information for Staff to determine the amount
attributable solely to qualifying broadband equipment, thus Staff recommends the Commission
deny the Company's Application.
STAFF RECOMMENDATION
Staff recommends the Commission deny the Company's Application for the Idaho
Broadband Equipment Tax Credit.
Respectfully submitted this 27th day of August 2026.
Jeffrey R. Loll
Deputy Attorney General
Technical Staff. Jon Kruck
I:\Utility\UMISC\COMMENTS\GNR-T-26-04 Comments.docx
STAFF COMMENTS 3 AUGUST 27, 2026

CERTIFICATE OF SERVICE
I HEREBY CERTIFY THAT I HAVE THIS 27th DAY OF AUGUST 2026,
SERVED THE FOREGOING COMMENTS OF THE COMMISSION STAFF IN CASE
NO. GNR-T-26-04, BY E-MAILING A COPY THEREOF, TO THE FOLLOWING:
DAFENG ZHU
SENIOR TAX MANAGER
CABLE ONE, INC.
210 E. EARLL DR
PHOENIX, AZ 85012
EMAIL: Dafeng Zhugcableone.biz
PATRICIA JORD N, SECRETARY
CERTIFICATE OF SERVICE