20051205_1409.pdf

DECISION MEMORANDUM
TO:COMMISSIONER KJELLANDER
CO MMISSI 0 NER SMITH
COMMISSIONER HANSEN
COMMISSION SECRETARY
LEGAL
WORKING FILE
FROM:WAYNE HART
DATE:DECEMBER 1 , 2005
RE:PROJECT MUTUAL TELEPHONE COOPERATIVE'S BROADBAND
TAX CREDIT APPLICATION; CASE NO. PRJ-05-01.
BACKGROUND
On November 29 2005, the Commission received an Application from Project Mutual
Telephone Cooperative (Project Mutual) asking for approval of equipment for the broadband tax
credit pursuant to Order No. 28784 and Idaho Code ~ 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
Project Mutual's Application identifies the Company s broadband investments for the
year ended December 31 2004. The application indicated Project Mutual had installed central
office equipment, remote terminal equipment and fiber optic and copper cables to provide ADSL
(asynchronous digital subscriber line), SDSL (synchronous digital subscriber line) and HDSL
(high bit rate digital subscriber line) broadband services to Idaho customers. The application
included a signed affidavit indicating the submitted investments qualified for the broadband tax
credit. The Application identified a total investment under one half of a million dollars.
ST AFF REVIEW
In order to qualify for the credit, the broadband equipment must be capable of
transmitting signals at a rate of at least two hundred thousand (200 000) bits per second to a
DECISION MEMORANDUM DECEMBER 1 , 2005
subscriber and at least one hundred twenty-five thousand (125 000) bits per second from a
subscriber. Idaho Code ~ 63-30291(3)(b). In addition, for a telecommunications carrier, such
equipment must "be necessary to the provision of broadband service and an integral part of a
broadband network"Idaho Code ~ 63-30291(3)(b)(i). Staff has reviewed the list ofproposed
broadband equipment submitted by Project Mutual and believes that the equipment identified
meets this statutory criteria. 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
Does the Commission wish to approve Project Mutual's Application for an Order
confirming that the installed equipment qualifies for the broadband investment tax credit?
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DECISION MEMORANDUM DECEMBER 1 , 2005