HomeMy WebLinkAbout20220222_jk1rq.pdfDECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:JOHAN E.KALALA-KASANDA
RILEY NEWTON
DATE:FEBRUARY 17,2022
RE:THE 2021 BROADBAND EQUIPMENTTAX CREDIT APPLICATION
FOR ALBION TELEPHONE COMPANY,CASE NO.ALB-T-22-01.
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 63-30291 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 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.
Commission Order No.35297 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.
DECISIONMEMORANDUM -l -FEBRUARY 17,2022
THE APPLICATION
On January 20,2022,the Commission received an Application from Albion Telephone
Company.("Albion"or "Company"),seeking approval of the equipment for the broadband tax
credit installed during calendar year 2021.In the Application and in the follow up inquiries from
Staff,Syringa discloses that its broadband network has data transmission rates at a minimumrate
of 6 Mbps for few customers who are on old,grandfatheredplan.However,the Company is
planning on doing away with that speed,in the next couple of months,and upgrade customers to
the minimumrate of 25 Mbps for both upstream and downstream transmissions with
transmission speeds up to l Gbps.This rate is above the statutory speed requirements pursuant
to Idaho Code §63-30291.The Company asserts that 99%of its Idaho subscribers have access
to the broadband network.Albion invested approximately $1,864,460 in 2021 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.35297 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.ALB-T-22-01 is qualified broadband equipment as defined in Idaho Code §63-3029I(3)(b)
and forward it to the Idaho Tax Commission?
an E.Kalala-Kask
Udmemos/ALB-T-22-Ol Albion Broadband Tax Credet
DECISION MEMORANDUM -2 -FEBRUARY 17,2022