20221004_INCT2201_jk3.pdf

DECISION MEMORANDUM
TO:COMMISSIONER ANDERSON
COMMISSIONER CHATBURN
COMMISSIONER HAMMOND
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:JOHAN E.KALALA-KASANDA
MICHAEL DUVAL
DATE:OCTOBER 4,2022
RE:THE 2021 BROADBAND EQUIPMENTTAX CREDIT APPLICATION
FOR INLAND CELLULAR,LLC;CASE NO.INC-T-22-01.
BACKGROUND
In 2001,House Bill 377 was enacted authorizing income tax credit for the installation of
qualifyingbroadband 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 second to a subscriber and at least
125,000 bits per second from a subscriber.Idaho Code §63-3029I(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 Procedural Order No.35297 and Idaho Code §63-3029I(4).
Once the Commission has determinedthe installed equipment is eligible for the broadband
equipment tax credit,an order along with the original Application is forwarded to the Idaho State
Tax Commission.
DECISIONMEMORANDUM -)-OCTOBER 4,2022
THE APPLICATION
On August 29,2022,the Commission received an Application from Inland Cellular,
LLC.("Inland"or "Company"),seeking approval of the equipment for the broadband tax credit
installed during calendar year 2021.In the Application,Inland represents that it installed
equipment associated with technologies to support "mobile EVDO and LTE data:fixed wireless,
fiber to the premises:fiber backhaul and,microwave backhaul."Inland discloses that its
broadband network has data transmission rates which exceeds the statutory required rates of
200,000 bits per second to a subscriber and 125,000 bits per second from a subscriber.This is
shown in Table No.1 below:
Table No.1:Transmission Rates
Data Transmission Rate
EVDO mobile data:3Mbps down/1 Mbps up
LTE mobile data:10 Mbps down /3 Mbps up
Fiber to the premises:from 100 Mbps to 1 Gbps
from 3 Mbps down/1Mbps up to 100 Mbps down /20
Fixed wireless:Mbps up
Microwaves backhaul:from 50 Mbps to I Gbps
The Company asserts that 26,894 subscribers of 105,365 of its Idaho subscribers are
customers of its broadband network or 25.5%.Infand invested approximately $1,350,411.50in
2021 in qualifying broadband equipment that it confirms is integral to the broadband network.
STAFF REVIEW AND RECOMMENDATION
Staff reviewed and audited the list of proposed broadband equipment and believes the
equipment qualifies for the investment tax credit pursuant to Procedural Order No.35297 and
Idaho Code §63-3029I(3)(b).Therefore,Staff recommends that the Commission issue an order
confirming the equipment is qualified broadband equipment and forward that order along with a
copy of the Application to the Idaho State Tax Commission.
DECISION MEMORANDUM -2 -OCTOBER 4,2022
COMMISSION DECISION
Does the Commission wish to issue an order confirmingthe equipment identified in Case
No.INC-T-22-01 is qualified broadband equipment as defined in Idaho Code §63-3029I(3)(b)
and forward it to the Idaho State Tax Commission?
o an E.Kalala-Kasanda
Udmemos/INC-T-22-01 Decision Memo
DECISION MEMORANDUM -3 -OCTOBER 4,2022