20030331_419.pdf

DECISION MEMORANDUM
TO:CO MMISSI 0 NER KJELLAND ER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DOUG COOLEY
DATE:MARCH 27, 2003
RE:DIGITAL EASY CHAIR'S APPLICATION FOR BROADBAND
EQUIPMENT TAX CREDIT - GNR-03-11.
BACKGROUND
On March 17 , 2003 , the Commission received an Application from WestCom, LLC
dba Digital Easy Chair to receive an investment tax credit for eligible broadband equipment
pursuant to Order No. 28784 and Idaho Code 9 63-30291(4). To be eligible for the tax credit, the
taxpayer must apply for and obtain from the Commission an Order confirming that installed
equipment qualifies for the tax credit.
DISCUSSION
Digital Easy Chair stated that, during calendar year 2002, it installed an Internet
switch, routers, servers, optical splitters, optical premises equipment for homes, power supply,
and fiber optic cable to homes in the Bear Creek Subdivision in Meridian, Idaho and on Boeing
Street in Boise, Idaho. The Bear Creek subdivision will have approximately 348 homes when
fully developed. Digital Easy Chair has obtained a Certificate of Public Convenience and
Necessity in Idaho and provides high-speed Internet access, E-mail, and community portal
services to these homes at download and upload transmission rates of 256 kbps to 1.5 Mbps.
STAFF REVIEW
Staffhas reviewed the list of proposed broadband equipment submitted by Digital
Easy Chair and believes that the equipment identified qualifies for the investment tax credit
DECISION MEMORANDUM MARCH 27, 2003
pursuant to Idaho Code 9 63-30291. Therefore, Staff recommends approval of the Company
Application and further recommends that the Commission forward the approving Order along
with a copy of the original Application to the Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve Digital Easy Chair s Application for the broadband
investment tax credit?
udmemos/easy ehair dee memo.
DECISION MEMORANDUM MARCH 27, 2003