(1) All property and income of the ABLE Trust Fund, as an instrumentality of the state, is exempt from all taxation by the state and by its political subdivisions.

(2) Any contributor or payor to a Mississippi ABLE Program account may deduct from their Mississippi taxable income any contributions or payments to an account or accounts in the ABLE Trust Fund up to a maximum annual amount limit established by Congress for such accounts for single, joint and other filers. Contributions or payments for such tax years may be made after such calendar years but before the deadline for making contributions to an individual retirement account under federal law for such years. The earnings portion of any withdrawals from an account that are not qualified withdrawals, as well as any amounts included in such nonqualified withdrawals previously deducted from taxable income under this section, shall be included in the gross income of the recipient of the withdrawal for purposes of the Mississippi Income Tax Law in the year of such withdrawal.

(3) Additionally, the participation of any Mississippi resident in the Mississippi ABLE Program or any other qualified ABLE Program, shall not preclude the resident from receiving any benefit or assistance provided by the State of Mississippi for which they are eligible. Funds in an individual’s Mississippi ABLE account or any other ABLE account shall be exempt from any consideration when any agency or subdivision of the state is determining an individual’s eligibility for state-provided assistance. Likewise, any tangible assets purchased with Mississippi ABLE account funds or any other ABLE account funds which are not otherwise disqualified as a countable resource of a program participant shall be exempt from consideration when determining such person’s eligibility provided by the state, to the extent allowable under federal law.