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HomeMy WebLinkAbout20050816_1285.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER HANSEN COMMISSION SECRETARY LEGAL WORKING FILE FROM:WAYNE HART DATE:AUGUST 12, 2005 RE:CUSTER TELEPHONE CO-OP INC BROADBAND TAX CREDIT APPLICATION; CASE NO. CUS-05- BACKGROUND On June 29 2005, the Commission received an Application from Custer Telephone Co-op Inc. (Custer) 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 Custer s Application indicated it had installed central office equipment and fiber and copper cables to provide DSL services to Idaho customers. The Company asserts that its service provides speeds of between 128K and 512K bits per second for uploads from customers, and 512K and 1.5M bits per second for downloads to customers. The Company further states that the equipment is necessary and integral to its broadband network and that 100% of the investment will be used to provide service to Idaho customers. The Application identified nearly five hundred thousand dollars of investment in 2004. STAFF REVIEW In order to qualify for the credit, the broadband equipment must be 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 DECISION MEMORANDUM AUGUST 12, 2005 63-3029I(3)(b). In addition, for a telecommunications carrier, such equipment must "be necessary to the provision of broadband service and an integral part of a broadband network"Idaho Code 63-3029I(3)(b)(i). Staff has reviewed the list of proposed broadband equipment submitted by Custer and believes that the equipment identified meets this statutory criteria. 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 Custer s Application for the broadband investment tax credit? u:dmemos/custer 05 bband dm DECISION MEMORANDUM AUGUST 12, 2005