100 STAT. 2752
PUBLIC LAW 99-514—OCT. 22, 1986
any underpayment, to the extent such underpayment was created or increased by any provision of this Act.
Subtitle F—Provisions Regarding Judicial
, Proceedings SEC. 1551. LIMITATIONS ON AWARDING OF COURT COSTS AND CERTAIN FEES MODIFIED. (a) MAXIMUM DOLLAR LIMITATION REMOVED.—Subsection (b) of
section 7430 (relating to awarding of court costs and certain fees) is amended by striking out paragraph (1) and redesignating paragraphs (2), (3), and (4) as paragraphs (1), (2), and (3), respectively. (b) AWARDING OF COURT COSTS AND CERTAIN FEES DENIED I F PREVAILING PARTY PROTRACTS PROCEEDINGS.—Section 7430(b) (relat-
ing to limitations to awarding of court costs and certain fees) is amended by adding at the end thereof the following new paragraph: "(4)
COSTS
DENIED
WHERE
PARTY
PREVAILING
PROTRACTS
PROCEEDINGS.—No award for reasonable litigation costs may be made under subsection (a) with respect to any portion of the civil proceeding during which the prevailing party has unreasonably protracted such proceeding." (c) ADDITIONAL LIMITATIONS ON FEES OF EXPERT WITNESSES AND
ATTORNEYS.—Subparagraph (A) of section 7430(c)(1) (defining reasonable litigation costs) is amended to read as follows: "(A) IN GENERAL.—The term 'reasonable litigation costs' includes— "(i) reasonable court costs, and "(ii) based upon prevailing market rates for the kind or quality of services furnished— ^^^' "(I) the reasonable expenses of expert witnesses in connection with the civil proceeding, except that no expert witness shall be compensated at a rate in excess of the highest rate of compensation for expert witnesses paid by the United States, "(II) the reasonable cost of any study, analysis, engineering report, test, or project which is found uby the court to be necessary for the preparation of the party's case, and i. "(Ill) reasonable fees paid or incurred for the services of attorneys in connection with the civil , 'c,^:. '^. proceeding, except that such fees shall not be in excess of $75 per hour unless the court determines i t ' that an increase in the cost of living or a special ^ factor, such as the limited availability of qualified attorneys for such proceeding, justifies a higher rate." (d) DEFINITION OF PREVAILING PARTY.—Subparagraph (A) of section 7430(c)(2) (defining prevailing party) is amended— (1) by striking out "was unreasonable" in clause (i) and inserting in lieu thereof "was not substantially justified", and (2) by striking out "and" at the end of clause (i), by striking out the period at the end of clause (ii) and inserting in lieu thereof ", and", and by adding at the end thereof the following new clause:
�
