California Assembly Targets ICE Contractors in Pair of Tax Bills

May 28, 2026, 12:22 PM UTC

The California Assembly on Wednesday advanced two bills giving companies incentives to limit collaboration with federal immigration enforcement agencies.

One of the measures (AB 1633) would impose a 50% gross receipts tax on income companies earn running immigration detention facilities in the state. The other (AB 1675) would prevent the state from giving tax breaks to companies that contract with federal immigration agencies.

The gross receipts tax passed the Assembly on a 58-18 vote and the bill to scale back tax breaks passed 54-20. Both bills now head to the state Senate.

The California legislature has ...

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