Idaho Public Utilities Commission Confirms Farmers Mutual Telecom Inc.'s Broadband Equipment as Eligible for Tax Credit

Strategic Insights -

In a recent order (ORDER NO. 34935), the Idaho Public Utilities Commission has confirmed that equipment installed by Farmers Mutual Telecom Inc. in 2017 meets the statutory requirements for "qualified broadband equipment" under Idaho Code § 63-3029I. This confirmation allows the company to receive an income tax credit for the investment in the broadband equipment. The equipment was deemed eligible after a thorough review by the Commission's Staff, who found that it meets the statutory criteria, including being capable of transmitting signals at rates of at least 200,000 bits per second to a subscriber and 125,000 bits per second from a subscriber.

Key Takeaways:

  • The Idaho Public Utilities Commission has issued an order confirming that equipment installed by Farmers Mutual Telecom Inc. in 2017 is "qualified broadband equipment" under Idaho Code § 63-3029I.
  • The equipment was deemed eligible after a review by the Commission's Staff, who found that it meets the statutory criteria for "qualified broadband equipment".
  • The statutory definition of "qualified broadband equipment" is equipment that is capable of transmitting signals at rates of at least 200,000 bits per second to a subscriber and 125,000 bits per second from a subscriber, and is primarily used to provide services in Idaho to Idaho public subscribers.
  • The Commission has forwarded the order and the application to the Idaho State Tax Commission.
  • The total net investment in the qualifying broadband equipment was $172,710.39 in 2017.
  • The equipment was estimated to be capable of serving more than 3% of Idaho customers.

Statistics:

  • $172,710.39: Total net investment in the qualifying broadband equipment in 2017.
  • 3%: Estimated percentage of Idaho customers who have access to Farmers Mutual Telecom Inc.'s broadband network.
  • 200,000 bps: Minimum transmission rate of signals to a subscriber.
  • 125,000 bps: Minimum transmission rate of signals from a subscriber.

Sources:

  • Farmers Mutual Telecom Inc.'s Application (Case No. FMU-T-20-02)
  • Idaho Code § 63-3029I
  • Idaho Public Utilities Commission's Order (ORDER NO. 34935)
  • Commission Staff's February 10, 2021 Decision Memorandum