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(2) Second twelve month exclusion and phase- <br />in. During the second cumulative twelve <br />month period after the date a member who is a <br />person with disabilities of a qualified family is <br />first employed or the family first experiences <br />an increase in annual income attributable to <br />employment, the responsible entity must <br />exclude from annual income of a qualified <br />family fifty percent of any increase in income <br />of such family member as a result of <br />employment over income of that family <br />member prior to the beginning of such <br />employment. <br />(3) Maximum four year disallowance. The <br />disallowance of increased income of an <br />individual family member who is a person <br />with disabilities as provided in paragraph <br />(c)(1) or (c)(2) is limited to a lifetime 48 <br />month period. The disallowance only applies <br />for a maximum of twelve months for <br />disallowance under paragraph (c)(1) and a <br />maximum of twelve months for disallowance <br />under paragraph (c)(2), during the 48 month <br />period starting from the initial exclusion under <br />paragraph (c)(1) of this section. <br />(d) Inapplicability to admission. The <br />disallowance of increases in income as a result <br />of employment of persons with disabilities <br />under this section does not apply for purposes <br />of admission to the program (including the <br />determination of income eligibility or any <br />income targeting that may be applicable). <br />iii29iio Page 6-46 <br />