![](data:image/svg+xml;base64,PD94bWwgdmVyc2lvbj0iMS4wIiBlbmNvZGluZz0iVVRGLTgiPz4KPHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHhtbG5zOnhsaW5rPSJodHRwOi8vd3d3LnczLm9yZy8xOTk5L3hsaW5rIiB3aWR0aD0iMTQ4Ny41cHQiIGhlaWdodD0iMTkyNXB0IiB2aWV3Qm94PSIwIDAgMTQ4Ny41IDE5MjUiIHZlcnNpb249IjEuMiI+CjxnIGlkPSJzdXJmYWNlNSI+CjwvZz4KPC9zdmc+Cg==)
as provided in section 102 of the Pennsylvania ABLE Act.
"Internal Revenue Code." The Internal Revenue Code of 1986
(Public Law 99-514, 26 U.S.C. ยง 1 et seq.).
"Pennsylvania ABLE Act." The act of April 18, 2016 (P.L.128,
No.17), known as the Pennsylvania ABLE Act.
"Pennsylvania ABLE Savings Program." The program established
under the Pennsylvania ABLE Act.
"Qualified disability expense." The term shall have the same
meaning as provided in section 102 of the Pennsylvania ABLE Act.
"Rollover distribution." The term shall have the same
meaning as provided in section 102 of the Pennsylvania ABLE Act.
Section 3. Contributions and distributions.
(a) Exemption.--Subject to subsection (b), the following
shall be exempt from all taxation by the Commonwealth and its
political subdivisions:
(1) Undistributed earnings on an account.
(2) A rollover distribution that is excludable from tax
under section 529A(c) of the Internal Revenue Code.
(3) An amount distributed from an account that is
excludable from tax under section 529A(c) of the Internal
Revenue Code.
(b) Deduction.--
(1) An amount paid as a contribution into an account
shall be deductible from taxable income on the annual
personal income tax return.
(2) The amount paid as a contribution to an account
allowable as a deduction under this section shall be subject
to an annual limitation not to exceed the threshold for
exclusion from gifts as provided in section 2503(b) of the
Internal Revenue Code, per designated beneficiary.
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