California AB490 allows a deduction for car loan interest payments on personal use vehicles from gross income.

California AB490 amends the Revenue and Taxation Code to allow a deduction for interest paid on a qualified motor vehicle loan from gross income. This deduction applies to each taxable year beginning on or after January 1, 2026, and before January 1, 2031. A "qualified motor vehicle loan" is defined as a loan obtained by the taxpayer for a personal use vehicle, and the deduction is limited to one such loan per taxpayer. The deduction aims to assist Californians in managing the cost of vehicle ownership, considering average monthly interest rates and loan terms.

California AB490 allows a deduction for car loan interest payments on personal use vehicles from gross income.

California AB490 amends the Revenue and Taxation Code to allow a deduction for interest paid on a qualified motor vehicle loan from gross income. This deduction applies to each taxable year beginning on or after January 1, 2026, and before January 1, 2031. A "qualified motor vehicle loan" is defined as a loan obtained by the taxpayer for a personal use vehicle, and the deduction is limited to one such loan per taxpayer. The deduction aims to assist Californians in managing the cost of vehicle ownership, considering average monthly interest rates and loan terms.