20050209_1085.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
COMMISSIONER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:FEBRUARY 2, 2005
RE:SYRINGA BROADBAND TAX CREDIT APPLICATION
CASE NO. SZ9-05-
BACKGRO UND
On January 26, 2005, the Commission received an Application from Syringa Networks
LLC (Syringa) asking for approval of equipment for the broadband tax credit pursuant to Order
No. 28784 and Idaho Code 9 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
Syringa s Application indicates that the majority of its 2004 expenditures were for the
completion of work started in 2002 and 2003, including the installation of its fiber optic cable
network, digital switching equipment, SONET multiplexers, testing equipment, modular routers
and supporting power supply and software. Syringa offers high-speed transport, frame-relay,
and other related services to customers at transmission rates of 1.544 Mbps and higher. The
Company also states that all of its customers are Idaho subscribers. Syringa states that it
invested approximately $447 000 in qualifying broadband equipment during calendar year 2004.
STAFF REVIEW
Staffhas reviewed the lists of proposed broadband equipment submitted by Syringa and
believes that the equipment identified qualifies for the investment tax credit pursuant to Idaho
DECISION MEMORANDUM FEBRUARY 2, 2005
Code 9 63-30291. 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 Syringa s Application for the broadband investment tax
credit?
udmemos/sz9tO5.1 dec memo
DECISION MEMORANDUM FEBRUARY 2, 2005