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

Existing law, the Personal Income 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 Personal Income Corporation Tax Law conforms to federal law in its treatment of certain exclusions. exclusions and credits. Existing law provides for certain programs for free legal services for indigent persons.

This bill would state the intent of the Legislature to enact future legislation known as the No Tax Breaks for ICE Contractors Act of 2026 that would, among other things, commencing with tax year 2027, prohibit a corporation that contracts with the United States Department of Homeland Security for goods or services from being eligible to pay employees on a pretax basis for the employer pension contributions exclusion, require revenue savings be directed toward legal services for people in the federal immigration legal process, and deem the act inoperative for any single tax year upon specified determinations by the Governor and Attorney General. 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 expenditures, as defined, otherwise available under the Corporation Tax Law to any taxpayer that contracts with United States Department of Homeland Security, 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.