Existing law, the Personal Income Tax Law, imposes taxes based upon gross income, and defines “gross income” as all income from whatever source derived, unless specifically excluded. The Personal Income Tax Law conforms to federal law in its treatment of certain exclusions. 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.