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Home/Bills/AB 490California · 2025–2026 Regular Session
Assembly BillFailedRevenue and Taxation

AB 490: Personal Income Tax Law: deduction from gross income: car loan interest payments.

California · Assembly · 2025–2026 Regular Session · last verified February 3, 2026

What AB 490 does, verified February 3, 2026

The bill allows a deduction from adjusted gross income for interest paid on a qualified motor vehicle loan for taxable years beginning in 2026 and ending in 2031. This deduction is limited to one qualified motor vehicle loan per taxpayer. The deduction aims to achieve specific goals, such as promoting responsible borrowing and reducing debt burdens. The bill also requires additional information and performance indicators to be included in any new tax expenditure. The bill takes effect immediately as a tax levy.

Bill journey
IntroducedComplete
2In CommitteeCurrent
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. (2026-02-02)Alert me
Recent actions7 total · showing 5
Feb. 02, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Jan. 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
May. 05, 2025In committee: Set, second hearing. Held under submission.
Mar. 17, 2025In committee: Set, first hearing. Referred to REV. & TAX. suspense file.
Feb. 24, 2025Referred to Com. on REV. & TAX.
Full action history, 2 earlier actionsConnect Plus
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