20200818_dk3.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER RAPER
COMMISSIONER ANDERSON
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:DANIEL KLEIN
DATE:AUGUST 12,2020
RE:TDS METROCOM,LLC'S 2019 BROADBAND EQUIPMENTTAX
CREDIT;CASE NO.TML-T-20-01.
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 defmed 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 equipment is 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 confirmingthat the
installed equipment meets the statutory definition of qualified broadband equipment.Procedural
Order No.28784 and Idaho Code §63-3029I(4).Once the Commission as 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 -AUGUST 12,2020
THE APPLICATION
On July 13,2020,the Commission received an Application from TDS Metrocom,LLC.
("TDS"or "Company"),seeking approval of the equipment for the broadband tax credit installed
during calendar year 2019.In the Application,TDS states that it installed broadband equipment
associated with Fiber to the Premise network ("FTTP).TDS discloses that its broadband
network has data transmission rates of 400 Mbps upstream and 1Gbps downstream.These rates
exceed the minimum statutory speed requirements pursuant to Idaho Code 63-3029I.The
Company estimates that 100%of its Idaho customers have access to its broadband network
within its designated service areas.TDS invested approximately $268,844.72 in 2019 in
qualifying broadband equipment that it confirms is integral to the broadband network.
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 confirming the 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 confirming the equipment identified in
Case No.TML-T-20-01 is qualified broadband equipment as defined in Idaho Code
§63-3029I(3)(b)and forward it to the Idaho Tax Commission?
Daniel Klein
Udmemos/TML-T-20-01 2019 TDS Metrocom Broadband Tax Credit
DECISION MEMORANDUM -2 -AUGUST 12,2020