1. (a) As used in this chapter, "service enhancement improvement costs" means costs that an eligible utility incurs in connection with an eligible addition, including the following:

   1. (1) Depreciation expenses.
   2. (2) For a municipally owned utility or a not-for-profit utility, extensions and replacements, to the extent that the extensions and replacements are not provided for through depreciation, in the manner provided for in IC 8-1.5-3-8 or IC 8-1-2-125 .
   3. (3) For a municipally owned utility or a not-for-profit utility, debt service on funds borrowed to pay for the eligible addition.
   4. (4) Property taxes to be paid by the eligible utility based upon the first assessment date following the placement in service of the eligible addition.
   5. (5) Pretax return for a public utility.
2. (b) The term does not include fines or penalties assessed against or imposed on an eligible utility for violating laws, regulations, or consent decrees related to a requirement.

As added by P.L.137-2020, SEC.15.