20190219_Daniel2jo.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DANIEL KLEIN
DATE:FEBRUARY 14,2019
RE:THE 2016 &2017 BROADBAND EQUIPMENTTAX CREDITAPPLICATIONFORMILLENNIUMNETWORKS,LLC;
CASE NO.MNL-T-18-01.
BACKGROUND
In 2001,House Bill 377 was enacted authorizing income tax credit for the installation of
qualifying broadband infrastructure in Idaho.Idaho Code §63-3029B(3)(a)(ii).In particular,
Section 63-3029I allows a taxpayer to receive an investment tax credit for eligible broadband
equipment installed during a calendar year.
Qualified broadband equipment is defined as "those network facilities capable of
transmitting signals at a rate of at least 200,000 bits per seconds (bps)to a subscriber and at least
125,000 bps from a subscriber."Idaho Code §63-329I(3)(b).If the equipmentis installed by a
telecommunications carrier,it must also be "necessary to the provision of broadband services
and an integral part of a broadband network."Idaho Code §63-3029I(3)(b)(i).To be eligible
for the tax credit,the taxpayer must obtain from the Commission an Order confirming that the
installed equipment meets the statutory definition of qualified broadband equipment.Procedural
Order No.28784 and Idaho Code §63-3029I(4).Once the Commission has determined the
installed equipment is eligible for the broadband equipment tax credit,an order along with the
original Application is forwarded to the Idaho Tax Commission.
DECISION MEMORANDUM -1 -FEBRUARY 14,2019
THE APPLICATION
On December 18,2018,the Commission received an Application from Millennium
Networks,LLC ("Millennium"or "Company"),seeking approval of the equipment for the
broadband tax credit installed during calendar years 2016 and 2017.In the Application,
Millennium states that it installed equipment associated with Cable Modem and High Speed
Broadband services with transmission rates of 15 to 60 Mbps upstream and 3 to 10 Mbps
downstream,which exceeds the required rates of 200,000 bits per second to a subscriber and
125,000 bits per second from a subscriber.The Company asserts that more than 50%of its
Idaho subscribers have access to the broadband network.The Company invested approximately
$1,525,854.88in 2016 and approximately $1,006,091.85 in 2017 in qualifying broadband
equipment that it confirms is integral to the broadbandnetwork.
STAFF REVIEW AND RECOMMENDATION
Staff has reviewed and audited the list of proposed broadband equipment and believes
the identified equipment qualifies for the investment tax credit pursuant to Procedural Order
No.28784 and Idaho Code §63-3029I(3)(b).Staff,therefore,recommends that the Commission
issue an Order confirmingthe equipment is qualified broadband equipment and forward the
approving Order along with a copy of the original Application to the Idaho Tax Commission.
COMMISSION DECISION
Does the Commission wish to issue an Order confirmingthe equipment identified
in Case No.MNL-T-18-01 is qualified broadband equipment as defined in Idaho Code
§63-3029I(3)(b)and forward it to the Idaho Tax Commission?
Daniel Klein
Udmemos/MNL-T-18-01 2018 Millenium Networks LLC Broadband Tax Credit
DECISION MEMORANDUM -2 -FEBRUARY 14,2019