AB 1675: Corporation Tax Law: tax expenditures: No Tax Breaks for ICE Contractors Act of 2026.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law, the Corporation Tax Law, imposes taxes based upon gross income, and defines “gross income” as all income from whatever source derived, unless specifically excluded. Existing law allows various credits against the taxes imposed by that law. The Corporation Tax Law conforms to federal law in its treatment of certain exclusions and credits. Existing law provides for certain programs for free legal services for indigent persons.

This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, enact the No Tax Breaks for ICE Contractors Act of 2026, which would deny all tax credits otherwise available under the Corporation Tax Law to any taxpayer that contracts with United States Department of Homeland Security, except as provided. The bill would establish the California Immigrant Resilience Fund in the State Treasury. The bill would require the Franchise Tax Board, in consultation with the Department of Finance, to estimate the amount of additional revenue resulting from the provisions of the bill, notify the Controller of that amount, and require the Controller to transfer that amount to the fund. The bill would make moneys in the fund available to provide immigration-related services, including removal defense, as provided, upon appropriation by the Legislature.

This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

This bill would take effect immediately as a tax levy.

Sponsors

Sponsors by party (alphabetical): Democratic 21

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 24, 2026In committee: Set, first hearing. Hearing canceled at the request of author.
2. June 16, 2026From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on REV. & TAX.
3. June 10, 2026Referred to Com. on REV. & TAX.
4. May 28, 2026In Senate. Read first time. To Com. on RLS. for assignment.
5. May 27, 2026Read third time. Passed. Ordered to the Senate. (Ayes 54. Noes 20. Page 5487.)
6. May 18, 2026Read second time. Ordered to third reading.
7. May 14, 2026From committee: Do pass. (Ayes 11. Noes 4.) (May 14).
8. May 14, 2026Joint Rule 62(a), file notice suspended. (Page 5030.)
9. May 13, 2026In committee: Set, first hearing. Referred to APPR. suspense file.
10. April 30, 2026Re-referred to Com. on APPR.
11. April 29, 2026Read second time and amended.
12. April 28, 2026From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 5. Noes 2.) (April 27).