# California Taxes Private Detention Operators

California has enacted AB 1633, which imposes a 25% levy on private immigration-detention operators’ California gross income beginning July 1, 2028, and SB 420, which removes detention facilities from a charitable property-tax exemption. A separate measure, AB 2465, remains pending and could affect certain large businesses tied to immigration enforcement by changing eligibility for state grants, loans, and tax credits. These measures may change operating costs and the economics of detention-related contracts in California; the AB 1633 start date is about 21 months away.

- Operators such as GEO Group and CoreCivic should assess the levy’s effect on California revenue and facility-level costs, and account for the loss of the property-tax exemption under SB 420.
- Contractors and agencies involved in detention operations should factor the enacted tax changes into California contract pricing and financial planning.
- Businesses with immigration-enforcement ties should evaluate potential state funding and tax-credit exposure if AB 2465 advances; the measure is pending, not an enacted requirement.

**Jurisdictions:** sled
**Industries:** Public Safety
**Topics:** Regulatory Compliance, Policy
**Published:** September 29, 2026

### Government Entities
- California State Legislature
- California State Board of Equalization
- U.S. Immigration and Customs Enforcement (ICE)

### Vendors
- GEO Group Inc. (Operator of five ICE detention facilities in California)
- CoreCivic Inc. (Operator of two ICE detention facilities in California)

### Key Quotes
> California is taking action to strengthen transparency, accountability and oversight around immigration enforcement in our state.
> — Gavin Newsom, Governor of California