Independent Counsel Limited Powers Act

Independent Counsel Limited Powers Act - Amends the independent counsel statute (the Act) to grant subpoena authority to the Attorney General in conducting preliminary investigations with respect to application for the appointment of an independent counsel.

Modifies provisions of the Act regarding: (1) persons subject to investigation to exclude any Assistant Attorney General and any individual working in the Department of Justice who is compensated at a rate of pay at or above level III of the executive schedule, the Director and Deputy Director of Central Intelligence and the Commissioner of Internal Revenue, and certain individuals who leave office or position during the incumbency of the President; and (2) crimes subject to investigation to cover persons who may, while in specified positions, have violated Federal criminal law (with exceptions) which involve an abuse of official power or improper influencing of executive, legislative, or electoral decisions.

Directs the Attorney General to apply for the appointment of an independent counsel upon determining that there are substantial (currently, reasonable) grounds to believe that further investigation is warranted, or if specified other conditions are met.

Requires the division of the court, in defining the independent counsel's prosecutorial jurisdiction, to assure that the independent counsel has adequate authority to fully investigate and prosecute all matters directly related (currently, related) to the subject matter with respect to which the Attorney General has requested the appointment of an independent counsel. Repeals provisions permitting such division to expand the independent counsel's jurisdiction.

Directs the division to appoint an independent counsel for a two-year term. Permits such term to be extended if there has been an indictment or if the independent counsel shows the division, in closed session, that the evidence already developed is serious enough to justify further inquiry, or if there is evidence of purposefully dilatory tactics on the part of the subject of the investigation.

Directs that the independent counsel receive compensation at the annual rate (currently, per diem rate equal to the annual rate) of basic pay payable for level IV of the executive schedule.

Prohibits an independent counsel from having other employment.