20041018_968.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
CO MMISSI 0 NER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DOUG COOLEY
DATE:OCTOBER 13, 2004
RE:BROADBAND TAX CREDIT APPLICATIONS; CASE NOS. COL-04-
AND SIL-04-
BACKGROUND
In September 2004 the Commission received Applications from Silver Star Telephone
Company, Inc. and Columbine Telephone Company dba Teton Telecom asking for approval of
equipment for the broadband tax credit pursuant to Order No. 28784 and Idaho Code 9 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
Columbine Telephone Company.Columbine indicates that, during 2003, it installed
DSL-capable line cards, concentrators, and supporting equipment in providing ADSL and HDSL
broadband services to customers in Teton County. The Application states that transmission rates
are from 128 kbps to 1.5 Mbps. Columbine also installed over 17 miles of fiber optic cable in
2003. Columbine capitalized the labor and overhead costs associated with the installation of this
equipment. The Company states nearly $630 000 of broadband investment for 2003.
Silver Star Telephone Company. Inc. Silver Star states that, during 2003, it installed
additional DSL line cards and over 6 miles of fiber optic cable to provide Asynchronous Digital
Subscriber Line (ADSL) to customers in Bonneville County at speeds from 128 kbps from
subscribers to 1.5 Mbps from subscribers. Silver Star capitalized the labor and overhead costs
DECISION MEMORANDUM OCTOBER 13 2004
associated with the installation of this equipment. The Company s broadband investment for
2003 was approximately $94 000.
ST AFF REVIEW
Staff has reviewed the lists of proposed broadband equipment submitted by the
companies and believes that the equipment identified qualifies for the investment tax credit
pursuant to Idaho Code 9 63-3029I. Staff recommends approval of the Applications and further
recommends that the Commission forward the approving Orders along with a copy of the
original Applications to the Idaho Tax Commission.
COMMISSION DECISION
Should the Commission approve the Applications for the broadband investment tax
credits?
i:udmemos/silverstar columbine 2003
DECISION MEMORANDUM OCTOBER 13 2004