Idaho Tax Credits Lead to Greater Broadband Connectivity

A tax incentive passed by the state legislature in 2001 could result in the broadband connectivity of much of southern Idaho by the end of this year. The law created a five-year, 3 percent tax credit for companies that expand broadband Internet connections to rural areas.

Contact: Paul Kalomiris Economic and Technology Policy Studies NGA

Syringa Networks, a consortium of independent telecommunications providers from Idaho and Wyoming, reported recently that as a result of the incentive, 80 percent of the population of southern Idaho would have broadband connectivity by the end of 2002. The firms also are using loans and loan guarantees from the U.S. Department of Agriculture to complete their work. The $36 million network of fiber optic cable rings (totaling 1,400 miles of wiring) will serve about 150,000 people.

Broadband works by servicing information – at very high speeds and over very long distances – using digital bit streams carried over a fiber-optic infrastructure. The credits are in effect from Jan. 1, 2001 through Dec. 31, 2005.

Related Links:

* Idaho tax credit legislation (HB 377, Section 8) http://www3.state.id.us/oasis/2001/H0377.html