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HomeMy WebLinkAbout20070917_2050.pdfDECISION MEMORANDUM TO:COMMISSIONER KJELLANDER COMMISSIONER SMITH COMMISSIONER REDFORD COMMISSION SECRETARYLEGAL WORKING FILE FROM:WAYNE HART DATE:SEPTEMBER 10, 2007 RE:VERIZON BROADBAND TAX CREDIT APPLICATION; CASE NO. VZN-07-02. BACKGROUND On June 20, 2007 , the Commission received an Application from Verizon Northwest, Inc (Verizon) 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 Verizon s Application indicated it had installed central office equipment, fiber and copper cables, digital radio, and pairgain devices, all capable of transmitting data in excess of200 000 bits per second to or from the consumer and will be used to provide DSL or high speed data services. The Company indicated the equipment is necessary and integral to its broadband network, and installed in the Bayview, Bonners Ferry, Bovill, Clarkfork, Coeur d' Alene, Deary, Genesee Hayden Lake, Hope, Kellogg, Moscow, Orofino, Peck, Pinehurst, Plummer-Worley, Post Falls Potlatch, Priest River, Rathdrum, Sandpoint, Spirit Lake, St. Maries, Wallace and Weippe exchanges. The Company claims that 100% of the investment will be used to provide service to Idaho customers. The Application identified over four million dollars of investment in 2006. DECISION MEMORANDUM SEPTEMBER 10, 2007 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 ~ 63-30291(3)(b). In addition, for a telecommunications carrier, such equipment must " necessary to the provision of broadband service and an integral part of a broadband network" Idaho Code ~ 63-30291(3)(b)(i). Staffhas reviewed the lists of proposed broadband equipment submitted by Verizon and believes that the equipment identified meets this statutory criterion. 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 Verizon s Application for the broadband investment tax credit? u:dmemosNzn 2007 broadband app memo.doc DECISION MEMORANDUM SEPTEMBER 10, 2007