SACRAMENTO, Calif. — A California bill aimed at eliminating state tax breaks for companies that contract with federal immigration enforcement agencies has advanced out of its first policy committee, moving forward in the legislative process amid ongoing debate over immigration detention practices.
According to a press release from the office of Assemblymember Alex Lee, AB 1675 — titled the No Tax Breaks for ICE Contractors Act — passed the Assembly Revenue and Taxation Committee on April 27 and is now headed to the Assembly Appropriations Committee.
Per the release, the bill would prevent companies that contract with the U.S. Department of Homeland Security and its immigration enforcement agencies from receiving certain California tax credits, including research and employment-based incentives.
Assemblymember Alex Lee’s office said the proposal is intended to ensure that California taxpayer dollars do not financially benefit corporations that support immigration enforcement carried out by the U.S. Immigration and Customs Enforcement and related agencies.
The press release from Lee’s office characterizes current federal enforcement practices as harmful, alleging that immigration agents are conducting arrests without judicial warrants and detaining individuals in facilities run by private contractors.
“ICE and its corporate profiteers are locking up tens of thousands of people without any regard for human dignity,” said Assemblymember Lee, according to the release. “The No Tax Breaks for ICE Contractors Act ensures that public dollars are not enriching corporations that enable ICE’s lawless violence.”
According to the press release, the bill comes at a time when private prison corporations are expanding immigration detention facilities in California. The release said the GEO Group recently opened an additional detention center in McFarland, while CoreCivic began operating a large detention facility in California City.
The press release states that individuals held in these privately operated facilities have reported concerns about conditions, including a lack of adequate food, medical care and hygiene supplies.
The release describes some facilities as overcrowded and cites allegations of human rights abuses.
These reports have become increasingly common in the media, with the American Civil Liberties Union reporting in December 2025 on seven individuals who were detained by ICE and ultimately sued the Trump administration over the conditions they faced while in custody.
The press release also references financial growth within the private detention industry. According to the office of Assemblymember Alex Lee, CoreCivic reported $244.7 million in revenue from ICE contracts in the fourth quarter of 2025, compared with $120.3 million during the same period in 2024.
The office of Assemblymember Lee reported that companies involved in immigration enforcement extend beyond private prison operators and include transportation providers, surveillance technology firms and security contractors.
For example, the release highlights a contract involving Palantir Technologies to develop software used to track immigrants, as well as manufacturing companies that produce restraint equipment used during deportations.
According to the press release, AB 1675 would make companies contracting with the Department of Homeland Security, ICE and related agencies ineligible for several California tax credits, while redirecting resulting revenue toward immigrant legal aid.
The press release states the bill is part of a broader effort to increase oversight of immigration detention practices.
Assemblymember Lee has also introduced AB 1801, which has already passed the Assembly floor and would require greater public input before local governments approve new or expanded detention facility contracts.
The release from the office of Assemblymember Alex Lee concluded by stating that supporters say the legislation reflects growing public concern over immigration enforcement and the role of private corporations.
The bill now heads to the Assembly Appropriations Committee for fiscal review.
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