4 CCR 723-53
BASIS, PURPOSE AND STATUTORY AUTHORITY.
The basis and purpose of these rules is to establish procedures relating to the creation of Rural Technology Enterprise Zones (RTEZ) and the associated Internet-access infrastructure technology qualifying for RTEZ income-tax credit as established under §39-32-105, C.R.S. It is intended that these rules promote investment in transmission infrastructure that allows for improved Internet and/or Internet- type access in Colorado's rural areas. These rules are issued pursuant to §39-32-105 and §40-2-108, C.R.S.
BASIS, PURPOSE AND STATUTORY AUTHORITY.
RULE (4 CCR) 723-53-1 APPLICABILITY.
RULE (4 CCR) 723-53-2 DEFINITIONS.
RULE (4 CCR) 723-53-3 DESIGNATION OF RURAL TECHNOLOGY ENTERPRISE ZONE (RTEZ).
RULE (4 CCR) 723-53-4 DESIGNATION OF QUALIFYING INTERNET ACCESS INFRASTRUCTURE TECHNOLOGY INVESTMENTS AND PERCENTAGE OF INVESTMENT TOWARDS CREDIT.
RULE (4 CCR) 723-53-5 REQUEST GUIDELINES.
723-53-5.1 Guidelines.
723-53-5.2Commission Guidelines.
RULE (4 CCR) 723-53-6 COMMISSION RTEZ CERTIFICATION FORM.
RULE (4 CCR) 723-53-7 VARIANCE AND WAIVER.
RULE (4 CCR) 723-53-1. APPLICABILITY.
These rules are applicable to all persons who provide qualifying infrastructure for Internet and/or Internet- type access in designated areas of Colorado. These rules are effective for income tax .3 beginning on or after January 1, 1999 and ending January 2005.
RULE (4 CCR) 723-53-2. DEFINITIONS.
The meaning of terms used in these rules shall be consistent with their general usage in the telecommunications industry unless specifically defined by Colorado statute or this rule. In addition to the definitions in this section, any applicable statutory definitions apply. In the event the general usage of terms in the telecommunications industry or the definitions in this rule conflict with the statutory definitions, the statutory definitions control. As used in these rules, unless the context indicates otherwise, the following definitions apply:
723-53-2.1 Basic Local Exchange Service or Basic Service. The telecommunications service which provides a local dial tone, access line and local usage necessary to place or receive a call within an exchange area and any other services or features that may be added by the Commission under section 40-15-502(2) C.R.S. Basic Service is comprised of those capabilities and services or features listed in Commission Rule 723-2-17.1. 723-53-2.2 Commission. The Public Utilities Commission of the State of Colorado. 723-53-2.3 End-user. Any person or public or private entity either using or requesting Internet or Internet-type access for a computer (s), television (s), or other device(s) capable of receiving transmissions utilizing a digital transmission protocol. End-user does not mean an Internet access provider, Internet service provider, telecommunications service provider, or any reseller of such services.
723-53-2.4 Dedicated transport facility/facilities. Facility or facilities utilized to transport aggregated end-user transmission traffic to a high-bandwidth Internet-backbone or equivalent facility.
723-53-2.5 Hub. The site and its attendant equipment utilized to consolidate or route end-user transmissions to a dedicated transport facility.
723-53-2.6 Hub municipality. The city, town, or village in which the hub resides and at which the dedicated transport facility(ies) begin/terminate.
723-53-2.7 Internet or Internet-type Access. A dedicated physical transmission pathway utilizing a digital transmission protocol (e.g., TCP/IP) that allows connection of a hub to a remote computer network (s).
723-53-2.8 Local Facilities. For purposes of this rule, the physical transmission pathway, wireline or wireless, from the end-user premise to the hub.
723-53-2.9 Provider. For purposes of these rules only, any person providing Internet or Internet- type access to end-users or who facilitates such access. 723-53-2.10 Qualifying Access Infrastructure. The physical components providing Internet or Internet-type access consisting of certain end-user equipment, the local facilities, the hub, and the dedicated transport facilities.
723-53-2.11 Requester. Any person seeking qualification for income tax credit under these rules. 723-53-2.12 Request or Request Form. A submittal to the Commission, made by a requester, which seeks Commission review of the requester's qualification for RTEZ income tax credit under these rules. Requests for RTEZ income tax credit may occur by use of the Request Form created by the Colorado Public Utilities Commission or by submission of information of the type, detail, and amount found on the Commission Request Form.
723-53-2.13 Rural Technology Enterprise Zone(s) (RTEZ). The designated geographic area within which access infrastructure investments qualify for an investor income tax credit. RULE (4 CCR) 723-53-3. DESIGNATION OF RURAL TECHNOLOGY ENTERPRISE ZONE (RTEZ). One (1) Rural Technology Enterprise Zone (RTEZ) is designated for Colorado. This RTEZ encompasses all of Colorado with the following listed exceptions:
1) Denver County;
2) Jefferson County east of Range 71 West and north of Township 6 South;
3) Douglas County north of Township 9 South;
4} Adams County west of Range 65 West;
5) Arapahoe County west of Range 65.West;
6) Boulder County east of Range 72 West;
7) Larimer County east of Range 70 West and south of Township 8 North; 8} El Paso County west of Range 64 West;
9) Ranges 64 West and 65 West of Townships 19 South and 20 South located in Pueblo County;
10) Municipal boundaries of the cities of Greeley and Evans located in Weld County; and 11) Ranges 1 East and 1 West of Townships 1 North and 1 South as surveyed from the Ute Principal Meridian located in Mesa County.
RULE (4 CCR) 723-53-4. DESIGNATION OF QUALIFYING INTERNET ACCESS INFRASTRUCTURE TECHNOLOGY INVESTMENTS AND PERCENTAGE OF INVESTMENT TOWARDS CREDIT. These rules are created to be technology-neutral. All requesters making investments in qualifying infrastructure that meets the requirements of these Rules and who deploy the infrastructure shall be eligible to receive the applicable income tax credit irrespective of the type of technology utilized. 723-53-4.1 General Requirements and Conditions. Qualifying infrastructure must provide Internet or Internet-type Access as defined in 723-53-2.7 over Internet Access Infrastructure as defined in 723-53-2.11. Only physical plant costs qualify as infrastructure investment; no administrative or other costs, such as franchise costs, qualify. Qualifying infrastructure investment may be either non-recurring or recurring costs.
723-53-4.2 Infrastructure Arrangement. Review of an infrastructure arrangement(s) for qualification will be based on the following model:
723-53-4.2.2 A hub which aggregates the upstream and downstream end-user traffic, disseminates downstream end-user traffic, and/or performs other local routing or switching functions;
723-53-4.2.3 A dedicated transport facility over which the aggregated end-user traffic is routed to and from an Internet backbone or similar facility; 723-53-4.2.4 Any combination of technologies that perform analogous functions to those listed above.
723-53-4.2.5 In order for investment in local facilities or a hub to qualify, it must be in connection with an investment in a dedicated transport facility. 723-53-4.3 Local Facilities Investment. To the extent an Access Provider provides or improves the local facilities transmission pathway to an end-user, 100 percent of the provider's non- recurrent physical and construction costs of these provisions/improvements shall be considered as part of the qualifying investment. This may include any end-user premise equipment necessary for the transmission and reception of Internet or Internet-type service transmissions. 723-53-4.4 Hub Investment. One hundred percent of the cost of the non-recurring physical plant investment in the hub that serves an RTEZ is a qualifying investment. 723-53-4.5 Dedicated Transport Facility Investment. One hundred percent of the recurring and non-recurring cost of providing the dedicated transport facility(ies) for aggregation of end-user traffic is a qualifying investment. The dedicated transport facilities must have a minimum transport bandwidth (MTB) of 1.544 Megabits per second (Mbps).
RULE (4 CCR) 723-53-5. REQUEST GUIDELINES.
723-53-5.1 § 39-32-105, C.R.S. Guidelines. Requesters must follow the guidelines and procedures in § 39-32-105, C.R.S., and any rules promulgated by the Colorado Department of Revenue implementing that statute.
723-53-5.2 Commission Guidelines.
723-53-5.2.1 The Requester must provide such information to establish that the investment is in the RTEZ; to establish that the investment qualifies by providing Internet or Internet-type access to end-users; and to establish the dates and amounts of costs incurred as a result of infrastructure deployment.
723-53-5.2.2 The Commission will provide RTEZ request packets to all requesting parties. RTEZ requests will be accepted at the Commission offices during regular business hours. Requests that do not use the Commission request but have equivalent information of the type, detail, and quantity as found on the Commission request form will be accepted. The Commission will treat information filed on a confidential basis in accordance with the Rules Relating to the Claim . of Confidentiality of Information Submitted to the Colorado Public Utilities Commission, 4 Code of Colorado Regulations 723-16.
RULE (4 CCR) 723-53-6 COMMISSION RTEZ CERTIFICATION FORM. 723-53-6.1 Issuance of Certification Form. Requesters that substantiate infrastructure investment in RTEZ will receive a certification from the Commission stating the quantity of infrastructure investment and the amount of associated income tax credit. The Colorado Department of Revenue will determine how a requester may claim such a credit.
RULE (4 CCR) 723-53-7. VARIANCE AND WAIVER.
The Commission may permit variance or waiver from these Rules, if not contrary to law, for good cause shown if it finds that compliance is impossible, impracticable or unreasonable.