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<ns0:Id>20250AB__167598AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
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<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-02</ns0:ActionDate>
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<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-23</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>1675</ns0:MeasureNum>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Members Lee, Bonta, Carrillo, and Ortega</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_ORIGINATING">(Principal coauthors: Assembly Members Schultz, Solache, and Ward)</ns0:AuthorText>
<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_OPPOSITE">(Principal coauthor: Senator Pérez)</ns0:AuthorText>
<ns0:AuthorText authorType="COAUTHOR_ORIGINATING">(Coauthors: Assembly Members Addis, Ahrens, Connolly, Elhawary, Garcia, Mark González, Haney, Harabedian, Jackson, Kalra, McKinnor, Ramos, and Rogers)</ns0:AuthorText>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Lee</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Bonta</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Carrillo</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ortega</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Schultz</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Solache</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ward</ns0:Name>
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<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Pérez</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Addis</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ahrens</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Connolly</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Elhawary</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Garcia</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Mark González</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Haney</ns0:Name>
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<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Harabedian</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Jackson</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Kalra</ns0:Name>
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<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>McKinnor</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Ramos</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>COAUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Rogers</ns0:Name>
</ns0:Legislator>
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<ns0:Title>An act to add and repeal Chapter 16 (commencing with Section 25000) of Part 11 of Division 2 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.</ns0:Title>
<ns0:RelatingClause>taxation, to take effect immediately, tax levy</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Corporation Tax Law: tax expenditures: No Tax Breaks for ICE Contractors Act of 2026.</ns0:Subject>
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<ns0:DigestText>
<html:p>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.</html:p>
<html:p>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 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.</html:p>
<html:p>
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 XIII
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A of the California Constitution, and thus would require for passage the approval of
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<ns0:Numerator>2</ns0:Numerator>
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of the membership of each house of the Legislature.
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<html:p>This bill would take effect immediately as a tax levy.</html:p>
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<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
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<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
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<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>YES</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_D9A363AC-3D8D-45DB-8B06-D30DE5E36E36">
<ns0:Num>SECTION 1.</ns0:Num>
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Chapter 16 (commencing with Section 25000) is added to Part 11 of Division 2 of the
<ns0:DocName>Revenue and Taxation Code</ns0:DocName>
, to read:
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<ns0:LawHeading id="id_99FF263C-F9C3-42A6-8F24-A4A6FED0354D" type="CHAPTER">
<ns0:Num>16.</ns0:Num>
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<ns0:LawHeadingText>Corporations Contracting with the United States Department of Homeland Security and Its Agencies</ns0:LawHeadingText>
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<ns0:Num>25000.</ns0:Num>
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<html:p>This chapter shall be known, and may be cited, as the No Tax Breaks for ICE Contractors Act of 2026.</html:p>
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<ns0:LawSection id="id_984B6800-0D2A-4603-BDF2-E3C30C36D95B">
<ns0:Num>25001.</ns0:Num>
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<html:p>For the purposes of this chapter, the following definitions apply: </html:p>
<html:p>
(a)
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“Contracting corporation” means any taxpayer that contracts with the Department of Homeland Security, either directly or through subcontracts, to provide goods or services.
</html:p>
<html:p>
(b)
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“Department of Homeland Security” refers to the United States Department of Homeland Security and the following agencies that are an operational or support component of the department:
</html:p>
<html:p>
(1)
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United States Customs and Border Protection.
</html:p>
<html:p>
(2)
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United States Immigration and Customs Enforcement.
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<html:p>
(3)
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Management Directorate.
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<html:p>
(c)
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“Tax expenditure” means a credit, deduction, exclusion, exemption, or other tax benefit as provided for by this part.
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<ns0:LawSection id="id_EE896DBF-9D22-4AB9-9641-3EDF8CFA12DD">
<ns0:Num>25002.</ns0:Num>
<ns0:LawSectionVersion id="id_DFF4BDB9-F5D6-4A7B-AB7F-9F4B173813AB">
<ns0:Content>
<html:p>For taxable years beginning on or after January 1, 2027, and before January 1, 2032, a contracting corporation shall not be eligible to claim any tax expenditure for corporations subject to reporting pursuant to Section 13305 of the Government Code.</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_E251498F-D0C9-4043-A400-9AFC2138BA74">
<ns0:Num>25003.</ns0:Num>
<ns0:LawSectionVersion id="id_EDB84CCD-945A-43F0-9011-5BABF8642B45">
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
No later than June 1, 2027, the Franchise Tax Board, in consultation with the Department of Finance, shall estimate the amount of revenue that would have resulted if the modifications made with respect to the calculation of taxable income by this chapter had applied to taxable years beginning on or after January 1, 2026, and before January 1, 2027, and notify the Controller of that amount.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
No later than June 1, 2028, and annually thereafter, the Franchise Tax Board, in consultation with the Department of Finance, shall estimate the amount of additional revenue resulting from the modifications made with respect to the calculation of taxable income by this chapter for the taxable years beginning on or after
January 1 of the calendar year immediately preceding the year in which the estimate is made and before January 1 of the calendar year in which the estimate is made and notify the Controller of that amount.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The California Immigrant Resilience Fund is hereby established in the State Treasury.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Upon receiving the notifications from the Franchise Tax Board pursuant to subdivision (a), the Controller shall transfer an amount equal to the amount estimated by the Franchise Tax Board in those notifications from the General Fund to the California Immigrant Resilience Fund to be made available, upon appropriation by the Legislature, for grants or contracts, and state operations, under the authority of Chapter 5.6 (commencing with Section 13300) of Part 3 of Division 9 of the Welfare and Institutions Code, with organizations qualified pursuant to that
chapter, to provide immigration-related services, including removal defense.
</html:p>
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</ns0:LawSection>
<ns0:LawSection id="id_21DA6456-60A2-4603-A8DF-D18D5578D64A">
<ns0:Num>25004.</ns0:Num>
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<ns0:Content>
<html:p>This chapter shall remain operative only until December 1, 2032, and as of that date is repealed.</html:p>
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<ns0:Num>SEC. 2.</ns0:Num>
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<html:p>This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.</html:p>
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