Requirements for scholarship granting organizations

An organization meets the requirements of this subsection if—

(A) such organization provides scholarships to 10 or more students who do not all attend the same school,

(B) such organization spends not less than 90 percent of the income of the organization on scholarships for eligible students,

(C) such organization does not provide scholarships for any expenses other than qualified elementary or secondary education expenses,

(D) such organization provides a scholarship to eligible students with a priority for— (i) students awarded a scholarship the previous school year, and (ii) after application of clause (i), any eligible students who have a sibling who was awarded a scholarship from such organization,

(E) such organization does not earmark or set aside contributions for scholarships on behalf of any particular student, and

(F) such organization— (i) verifies the annual household income and family size of eligible students who apply for scholarships to ensure such students meet the requirement of subsection (c)(2)(A), and (ii) limits the awarding of scholarships to eligible students who are a member of a household for which the income does not exceed the amount established under subsection (c)(2)(A).

(A) In general A scholarship granting organization may not award a scholarship to any disqualified person.

(B) Disqualified person For purposes of this paragraph, a disqualified person shall be determined pursuant to rules similar to the rules of section 4946.