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Idaho Public Utilities Commission Order of Fatbeam, LLC'S 2013 Broadband Equipment Tax Credit Application

August 29, 2014



BOISE, Idaho, Aug. 29 -- The Idaho Public Utilities Commission issued the following order:

On June 2. 2014, Fatbeam. LLC (the "Company") applied to the Idaho Public Utilities Commission ("Commission") for an Order confirming that equipment it installed in 2013 is "qualified broadband equipment" under idaho Code section 63-30291 (Income tax credit for investment in broadband equipment). With this Order, we confirm that the installed equipment is "qualified broadband equipment" under Idaho Code section 63-3 0291.

THE APPLICATION

In its Application, the Company says it invested $438,021.80 in qualifying broadband equipment in 2013. The Company says it installed equipment associated with Lit Ethernet and dark fiber services with average transmission rates of 10,000,000,000 bits per second ("bps"). The Company says it deployed services to the Coeur d'Alene School District and to other providers who serve school districts and businesses in the Rathdrum and Grangeville areas, and that its broadband network can serve all of its Idaho customers. See Application.

THE BROADBAND EQUIPMENT TAX CREDIT

Idaho Code section 60-3 0291 allows a taxpayer to receive an income tax credit for having installed qualified broadband equipment during a calendar year. Before the taxpayer is eligible for the tax credit, the taxpayer must first apply to the Commission for an Order confirming that the installed equipment is "qualified broadband equipment" as defined in the statute. Idaho Code section 63-30291(4). That statute defines "qualified broadband equipment" as equipment that qualifies for the Idaho Code section 63-3029B capital investment credit that "is capable of transmitting signals at a rate of at least [200,000 bps] to a subscriber and at least [125,000 bps] from a subscriber." Idaho Code section 63-30291(3)(b). In addition, to be "qualified broadband equipment" the equipment must be "primarily used to provide services in Idaho to Idaho public subscribers."

See Idaho Code section 63-30291(3)(b)(vii). Further, in "the case of a telecommunications carrier, such qualifying equipment shall be necessary to the provision of broadband service and an integral part of a broadband network." Idaho Code section 63-30291(3)(b)(i).

In furtherance of its statutory responsibility, the Commission has issued Order No. 28784. That Order specifies the information the taxpayer must include in the broadband tax credit application. When the taxpayer files the application, the Commission Staff reviews it to determine whether the listed equipment meets the statutory definition of "qualified broadband equipment." Staff then submits a recommendation to the Commission. If the Commission ultimately approves the application, then the Commission forwards it and the Order to the Idaho State Tax Commission.

STAFF REVIEW

Staff reviewed the Company's Application under Idaho Code section 63-30291. Based on its review, Staff believes that the Company is a telecommunications carrier and that the listed equipment meets the statutory criteria and is "qualified broadband equipment" that is eligible for the tax credit. Staff thus recommended the Commission: (1) issue an Order confirming that the Company's equipment is "qualified broadband equipment," and (2) forward copies of the Application and Order to the Idaho State Tax Commission.

COMMISSION FINDINGS

Having reviewed the Company's Application and Staffs recommendation, we find that the Company's equipment is "qualified broadband equipment" subject to the tax credit under Idaho Code section 63-3 0291. The Company is a telecommunications carrier. Further, the listed equipment (as presently configured) is an integral part of the Company's broadband network and is necessary to the provision of broadband service to Idaho customers. Accordingly, it is appropriate for the Commission to issue an Order confirming that the Company's equipment is "qualified broadband equipment." The Commission makes no findings regarding the costs of the installed broadband equipment or other expenses.

ORDER

IT IS HEREBY ORDERED that the Company's Application for an Order confirming that equipment it installed in 2013 is "qualified broadband equipment" is granted.

IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application be served on the Idaho State Tax Commission.

THIS IS A FINAL ORDER. Any person interested in this order (or in issues finally decided by this order) may petition for reconsideration within twenty-one (21) days of the service date of this order with regard to any matter decided in this order. Within seven (7) days after any person has petitioned for reconsideration, any other person may cross-petition for reconsideration. See Idaho Code sectionsS 61-626 and 62-6 19.

DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this L9 day of August 2014.

PAUL KJELLANDER, PRESIDENT

MACK A. REDFORD, COMMISSIONER

MARSHA H. SMITH, COMMISSIONER

ATTEST:

Jean D Jewel!

Commission Secretary

CC AutoTriage5rn-140830-30FurigayJane-4843058 30FurigayJane


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