HARRISBURG — Gov. Tom Wolf on Monday signed a law allowing the creation of tax-exempt savings accounts for people with disabilities and their families.

The ABLE accounts — short for Achieving a Better Life Experience — can be used for a range of disability-related expenses, including health care, housing and transportation, according to the governor’s office.

Savings in the accounts are not counted toward eligibility determinations for Medical Assistance health insurance, and the first $100,000 will not count toward determining eligibility for Social Security payments.

Maureen Cronin, executive director of The Arc of Pennsylvania, the state’s largest disability advocacy organization, said the change eliminates a disincentive to work while allowing families the peace of mind of putting money aside for a loved one. Previously, people could not receive Medical Assistance if they had more than $2,000 in a checking account.

“This is a huge advancement for people with disabilities,” she said.

Earnings on money in the accounts will not be taxed, so long as they are spent on a qualifying expense, said Scott Sloat, spokesman for the Pennsylvania Treasury, which will administer the program.

Mr. Wolf signed the bill in Hershey. He was accompanied by U.S. Sen. Bob Casey, D-Pa., who championed a proposal, signed by President Barack Obama in 2014, that permits states to establish the tax-free savings programs.

Treasury has posted information about the ABLE savings accounts online at http://​pa529.com/​able.html

The state aims to begin offering the program in the final months of 2016, according to the governor’s office.

The bill signed by Mr. Wolf was sponsored by Sen. Lisa Baker, R-Luzerne. It passed the Senate and the House unanimously.

Karen Langley: klangley@post-gazette.comor 717-787-2141 or on Twitter @karen_langley

First Published: April 19, 2016, 4:00 a.m.