2005 Idaho Code - 63-3029I — INCOME TAX CREDIT FOR INVESTMENT IN BROADBAND EQUIPMENT

                                  TITLE  63
                             REVENUE AND TAXATION
                                  CHAPTER 30
                                  INCOME TAX
    63-3029I.  INCOME TAX CREDIT FOR INVESTMENT IN BROADBAND EQUIPMENT. (1)
Subject to the limitations of this section, for taxable years beginning after
January 1, 2001, there shall be allowed to a taxpayer a nonrefundable credit
against taxes imposed by sections 63-3024, 63-3025 and 63-3025A, Idaho Code,
for qualified expenditures in qualified broadband equipment in Idaho.
    (2)  The credit permitted in subsection (1) of this section shall be three
percent (3%) of the qualified investment in qualified broadband equipment in
Idaho and shall  be in addition to the credit for capital investment permitted
by section 63-3029B, Idaho Code.
    (3)  As used in this section the term:
    (a)  "Qualified investment" shall be as defined in section 63-3029B, Idaho
    Code.
    (b)  "Qualified broadband equipment" means equipment that qualifies for
    the credit for capital investment permitted by section 63-3029B, Idaho
    Code, and is capable of transmitting signals at a rate of at least two
    hundred thousand (200,000) bits per second to a subscriber and at least
    one hundred twenty-five thousand (125,000) bits per second from a
    subscriber, and
         (i)   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. "Telecommunications
         carrier" has the meaning given such term by section 3(44) of the
         communications act of 1934, as amended, but does not include a
         commercial mobile service provider.
         (ii)  In the case of a commercial mobile service carrier, such
         qualifying equipment shall extend from the subscriber side of the
         mobile telecommunications switching office to a
         transmitting/receiving antenna, including such antenna, on the
         outside of the structure in which the subscriber is located.
         "Commercial mobile service carrier" means any person authorized to
         provide commercial mobile radio service to subscribers as defined in
         section 20.3 of title 47, Code of Federal Regulations (10-1-99 ed.),
         as amended.
         (iii) In the case of a cable or open video system operator, such
         qualifying equipment shall extend from the subscriber's side of the
         headend to the outside of the structure in which the subscriber is
         located. The terms "cable operator" and "open video system operator"
         have the meanings given such terms by sections 602(5) and 653,
         respectively, of the communications act of 1934, as amended.
         (iv)  In the case of a satellite carrier or a wireless carrier other
         than listed above, such qualifying equipment is only that equipment
         that extends from a transmitting/receiving antenna, including such
         antenna, which transmits and receives signals to or from multiple
         subscribers to a transmitting/receiving antenna on the outside of the
         structure in which the subscriber is located. "Satellite carrier"
         means any person using the facilities of a satellite or satellite
         services licensed by the federal communications commission and
         operating a fixed-satellite service or direct broadcast satellite
         services to provide point-to-multipoint distribution of signals.
         "Other wireless carrier" means any person, other than a
         telecommunications carrier, commercial mobile service carrier, cable
         operator, open video operator, or satellite carrier, providing
         broadband services to subscribers through the radio transmission of
         energy.
         (v)   In the case of packet switching equipment, such packet
         equipment installed in connection with other qualifying equipment
         listed in subsections (3)(b)(i) through (3)(b)(iv) of this section,
         provided it is the last in a series of equipment that transmits
         signals to a subscriber or the first in a series of equipment that
         transmits  signals from a subscriber. "Packet switching" means
         controlling or routing the path of a digital transmission signal
         which is assembled into packets or cells.
         (vi)  In the case of multiplexing and demultiplexing equipment, such
         equipment only to the extent that it is deployed in connection with
         providing broadband services in locations between packet switching
         equipment and the structure in which the subscriber is located.
         "Multiplexing" means the transmission of two (2) or more signals over
         a communications  circuit without regard to the communications
         technology.
         (vii) Any property not primarily used to provide services in Idaho to
         public subscribers is not qualified broadband equipment.
    (4)  No equipment described in subsections (3)(b)(i) through (3)(b)(vi) of
this section shall qualify for the credit provided in subsection (1) of this
section until the taxpayer applies to and obtains from the Idaho public
utilities commission an order confirming that the installed equipment is
qualified broadband equipment. Applications submitted to the commission shall
be governed by the commission's rules of procedure. The commission may issue
procedural orders necessary to implement this section.
    (5)  The credit allowed by subsection (1) of this section together with
any credits carried forward under subsection (7) of this section shall not, in
any one (1) taxable year, exceed the lesser of:
    (a)  The amount of tax due under sections 63-3024, 63-3025 and 63-3025A,
    Idaho Code, after allowance for all other credits permitted by this
    chapter; or
    (b)  Seven hundred fifty thousand dollars ($750,000).
When credits earned in more than one (1) taxable year are available, the
oldest credits shall be applied first.
    (6)  In the case of a group of corporations filing a combined report under
subsection (t) of section 63-3027, Idaho Code, credit earned by one (1) member
of the group but not used by that member may be used by another member of the
group, subject to the provisions of subsection (7) of this section, instead of
carried over. For a combined group of corporations, credit carried forward may
be claimed by any member of the group unless the member who earned the credit
is no longer included in the combined group.
    (7)  If the credit allowed by subsection (1) of this section exceeds the
limitation under subsection (5) of this section, the excess amount may be
carried forward for a period that does not exceed the next fourteen (14)
taxable years.
    (8)  In the event that qualified broadband equipment upon which the credit
allowed by this section has been used ceases to qualify for the credit allowed
by section 63-3029B, Idaho Code, or is subject to recapture of that credit,
the recapture of credit under this section shall be in the same proportion and
subject to the same provisions as the amount of credit required to be
recaptured under section 63-3029B, Idaho Code.
    (9)  (a) Subject to the requirements of this subsection, a taxpayer who
    earns and is entitled to the credit or to an unused portion of the credit
    allowed by this section may transfer all or a portion of the unused credit
    to:
         (i)   Another taxpayer required to file a return under this chapter;
         or
         (ii)  To an intermediary for its use or for resale to a taxpayer
         required to file a return under this chapter.
    In the event of either such a transfer, the transferee may claim the
    credit on the transferee's income tax return originally filed during the
    calendar year in which the transfer takes place and, in the case of
    carryover of the credit, on the transferee's returns for the number of
    years of carryover available to the transferor at the time of the transfer
    unless earlier exhausted.
    (b)  Before completing a transfer under this subsection, the transferor
    shall notify the state tax commission of its intention to transfer the
    credit and the identity of the transferee. The state tax commission shall
    provide the transferor with a written statement  of the amount of credit
    available under this section as then appearing in the commission's records
    and the number of years the credit may be carried over. The transferee
    shall attach a copy of the statement to any return in regard to which the
    transferred credit is claimed.
    (c)  In the event that after the transfer the state tax commission
    determines that the amount of credit properly available under this section
    is less than the amount claimed by the transferor of the credit or that
    the credit is subject to recapture, the commission shall assess the amount
    of overstated or recaptured credit as taxes due from the transferor and
    not the transferee. The assessment shall be made in the manner provided
    for a deficiency in taxes under this chapter.
    (10) In addition to other needed rules, the state tax commission may
promulgate rules prescribing, in the case of S corporations, partnerships,
trusts or estates, a method of attributing the credit under this section to
the shareholders, partners or beneficiaries in proportion to their share of
the income from the S corporation, partnership, trust or estate.