20060227_1468.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:FEBRUARY 22, 2006
RE:SYRINGA BROADBAND TAX CREDIT APPLICATION
CASE NO. SZ9-06-
BACKGROUND
On February 21 2006, the Commission received an Application from Syringa Networks
LLC (Syringa) asking for approval of equipment for the broadband tax credit pursuant to Order
No. 28784 and Idaho Code ~ 63-30291(4). To be eligible for the tax credit, the taxpayer must
obtain from the Commission an Order confirming that installed equipment qualifies for the tax
credit.
STAFF ANALYSIS
Syringa s Application indicates that the majority of its 2005 expenditures were for the
completion of work started in previous years, including the installation of its fiber optic cable
network, digital switching equipment, SONET multiplexers, testing equipment, modular routers
and supporting power supply and software. Syringa offers high-speed transport, frame-relay,
and other related services to customers at transmission rates of 1.544 Mbps and higher. The
Company also states that all of its customers are Idaho subscribers. Syringa states that it
invested approximately $500 000 in qualifying broadband equipment during calendar year 2005.
STAFF REVIEW
Staff has reviewed the lists of proposed broadband equipment submitted by Syringa and
believes that the equipment identified qualifies for the investment tax credit pursuant to Idaho
DECISION MEMORANDUM FEBRUARY 22, 2006
Code ~ 63-30291. Therefore , Staff recommends approval of the 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 Syringa s Application for the broadband investment tax
credit?
udmemos/Syringa broadband memo 2
DECISION MEMORANDUM FEBRUARY 22, 2006