How States are Rethinking CPA Licensure to Address the Accountant Shortage

As of May 2025, several U.S. states have enacted or proposed changes to their Certified Public Accountant (CPA) licensure requirements. These modifications aim to address the growing shortage of accountants by providing more flexible pathways to licensure. Here’s a summary of the states that have implemented or are considering changes:

States with Enacted CPA Licensure Changes

Colorado

Effective Date: December 15, 2024
Key Updates:
- Internship hours can now count toward both educational credit and the 1,800-hour work experience requirement.
- Audit coursework requirement reduced from 6 to 3 credit hours focusing on U.S. GAAS.
- Elimination of the mandatory 3-credit ethics course, though ethics remains integrated into curricula.

South Carolina

Effective Date: June 30, 2025
New Pathways:
- Education: Bachelor’s degree (120 credits) in accounting or a related field.
- Experience: Two years (2,000 hours) of relevant professional work experience, verified by a CPA supervisor.
- Exam: Passing all parts of the Uniform CPA Examination.

Connecticut

Effective Date: October 1, 2025
New Pathways:
- Master’s degree + 1 year of experience + CPA Exam
- Bachelor’s degree + 30 additional credit hours + 1 year of experience + CPA Exam
- Bachelor’s degree + 2 years of experience + CPA Exam

Washington

Effective Date: November, 20 2025
New Pathways:
- Bachelor’s Degree Path: A bachelor’s degree with an accounting concentration. Two (2) years of relevant accounting experience. Passing the Uniform CPA Exam.
- Graduate Degree Path: A post-baccalaureate degree with an accounting concentration. One (1) year of relevant accounting experience. Passing the Uniform CPA Exam.
- Existing 150-Hour Path (Sunsetting): The traditional 150-semester-hour education requirement, along with experience and exam requirements, remains available but will sunset (end) on December 31, 2035, as per the model legislation.

Hawaii

Effective Date: Already “in effect”
New Pathway:
- Allows a bachelor’s degree plus additional work experience (like three years total if only a bachelor’s is held) as an alternative to the standard 150-credit hour requirement.

Pennsylvania

Effective Date: Already “in effect”
New Pathway:
- New pathway allowing licensure with a bachelor’s degree (120 credits) + 2 years of relevant experience + CPA Exam

Ohio

Effective Date: January 1, 2026
New Pathways:
- Bachelor’s degree + 2 years of relevant experience + CPA Exam
- Master’s degree + 1 year of experience + CPA Exam
Additional Changes: Allows CPAs from other states to practice in Ohio without additional certification, enhancing interstate mobility.

Virginia

Effective Date: January 1, 2026
New Pathways:
- Bachelor’s degree + 2 years of relevant experience + CPA Exam
- Bachelor’s degree + 30 additional credit hours + 1 year of experience + CPA Exam
- Master’s degree + 1 year of experience + CPA Exam
Note: All candidates must complete 24 upper-level accounting credits and 24 business credits.

Georgia

Effective Date: January 1, 2026
New Pathways:
- Bachelor’s degree in accounting + 2 years of relevant experience + CPA Exam
- Master’s degree in accounting or taxation + 1 year of relevant experience + CPA Exam
Additional Changes: Broadens practice privilege mobility, allowing out-of-state CPAs with licenses in good standing to practice in Georgia without obtaining a separate state license, provided they meet Georgia’s education requirements and have passed the national CPA Exam.

Montana

Effective Date: January 1, 2026
New Pathway:
- A bachelor’s degree with specific accounting and business coursework and one year of relevant experience.
Additional Changes:
- Completion of 150 semester hours of college credit (including specific accounting and business courses), a bachelor’s degree, and one year of relevant experience (at least 2,000 hours).

New Jersey

Effective Date: January 1, 2026
New Pathways:
- Pathway 1 (Traditional): 150 college credits (like a Master’s or Bachelor’s + 30 extra) + 1 year of experience + passing the CPA Exam.
- Pathway 2 (New Option): A Bachelor’s Degree + 2 years of work experience + passing the CPA Exam.

Oregon

Effective Date: January 1, 2026
New Pathways:
- Bachelor’s degree + 2 years (4,000 hours) of qualifying experience + CPA Exam.

Nevada

Effective Date: January 1, 2026
New Pathways:
- Allowing licensure with a bachelor’s degree in accounting, two years of relevant professional experience, and passing the CPA Exam

North Carolina

Effective Date: January 1, 2026
New Pathways:
- Bachelor’s degree in accounting + 2 years of relevant experience + CPA Exam
- 150 credit hours with a bachelor’s or higher degree in accounting + 1 year of relevant experience + CPA Exam
Additional Changes:
- Broadens qualifying experience to include teaching accounting at accredited colleges or universities, along with private or public accounting work under a licensed CPA.
- Aims to address the state’s CPA shortage by offering more flexible licensing routes while maintaining exam and experience rigor.
- Reinforces practice mobility by allowing out-of-state CPAs in good standing to practice in North Carolina without obtaining a separate NC license.

Tennessee

Effective Date: January 1, 2026
New Pathways:
- Bachelor’s or master’s degree with 150 credit hours + 1 year of experience + CPA Exam
- Bachelor’s degree with 120 credit hours + 2 years of experience + CPA Exam

Minnesota

Effective Date: January 1, 2026
New Pathway:
- Bachelor’s + Experience: Bachelor’s Degree + 2 years (24 months) of relevant professional experience + Pass Uniform CPA Exam.
- Master’s + Experience: Master’s Degree + 1 year (12 months) of relevant professional experience + Pass Uniform CPA Exam.

California

Effective Date: January 1, 2025
New Pathways:
- 120-Unit Track: Bachelor’s degree (120 credits) + 2 years general accounting experience + Pass CPA Exam.
- 150-Unit Track (Traditional): 150 total credits (including master’s or additional undergrad) + 1 year general accounting experience + Pass CPA Exam.

Alaska

Effective Date: January 1, 2025
New Pathways:
- New Bachelor’s Pathway: A bachelor’s degree with an accounting concentration, two years of relevant work experience, and passing the CPA Exam.
- Master’s Pathway: A master’s degree with an accounting concentration, one year of experience, and passing the CPA Exam.
- Traditional Pathway: The existing requirement of 150 credit hours (often a master’s or bachelor’s plus extra courses) with one year of experience remains an option.

New Mexico

Effective Date: 2026
New Pathways:
- Bachelor’s + Experience: A bachelor’s degree (with an accounting or business concentration) plus two years (24 months) of relevant work experience and passing the CPA Exam.
- Master’s + Experience: A master’s degree with an accounting or business concentration, one year (12 months) of experience, and passing the CPA Exam.

Utah

Effective Date: July 1, 2026
New Pathway:
- Bachelor’s degree + 2 years of professional experience + CPA Exam
Change: Removes the 150-credit-hour education requirement, offering an alternative route to licensure.

Iowa

Effective Date: July 1, 2026
New Pathway:
- Education: A bachelor’s degree with required accounting coursework (often 120 credit hours).
- Experience: Two years (or 4,000 hours) of relevant accounting work experience.
- Exam: Passing the Uniform CPA Examination.

Delaware

Effective Date: July 1, 2026
New Pathways:
- Master’s Degree Route: A post-baccalaureate degree (Master’s) with an accounting concentration, plus 1 year (2,000 hours) of relevant experience and passing the CPA Exam.
- 150-Hour Route: 150 total college credits (including a degree with an accounting concentration) plus 1 year (2,000 hours) of relevant experience and passing the CPA Exam.
- Bachelor’s Degree Route: A Bachelor’s degree with an accounting concentration, plus 2 years (4,000 hours) of relevant experience and passing the CPA Exam.

Texas

Effective Date: August 1, 2026
New Pathway:
- Bachelor’s degree + 2 years of work experience + CPA Exam

New York

Effective Date: November 21, 2026
New Pathway:
- Education: 120 college credit hours (including accounting/business coursework).
- Experience: Two years (24 months) of relevant work experience.
- Exam: Pass the Uniform CPA Examination.

Illinois

Effective Date: January 1, 2027
Two New pathways:
- Bachelor’s degree with 120 credit hours + 2 years of relevant experience + CPA Exam
- Master’s degree + 1 year of experience + CPA Exam

Indiana

Effective Date: January 1, 2027
New Pathway:
- A bachelor’s degree + two years of relevant experience + passing the CPA Exam.
Additional Changes:
- The traditional 150-credit-hour path (with one year experience) remains available as an option.

States with Proposed or Pending CPA Licensure Changes

Arkansas

Proposal: Introduces a second pathway with 120 credit hours and 2 years of experience, in addition to the existing 150-hour requirement.
Status: Pursuing rule changes; supported by the Arkansas State Board of Public Accountancy.

New Hampshire

Proposal: Considering a rule to create a second pathway to licensure.
Status: Language not yet released; under consideration.

Florida

Proposed Pathways:
- Master’s degree in accounting/finance + 1 year of experience + CPA Exam
- Bachelor’s degree in accounting/finance + 2 years of experience + CPA Exam
- Bachelor’s degree in any field with accounting/finance coursework + 2 years of experience + CPA Exam
Status: Senate Bill 160, which included these pathways, passed the Senate but stalled in the House in 2025. A new bill with these provisions is anticipated to be reintroduced in the 2026 legislative session.

Michigan

Proposed Pathway:
- Allowing candidates to qualify with a bachelor’s degree, two years (2,000 hours) of relevant work experience, and passing the CPA Exam, instead of the traditional 150-credit hour requirement.
Status: The Michigan House passed the bill (HB 4893) in late 2025. The legislation now moves to the Senate for consideration.

Multi-front Efforts Address CPA and Accountant Shortage

The evolving landscape of CPA licensure across the United States reflects a strategic response to the profession’s growing talent shortage and the need for greater flexibility. These changes reflect a nationwide effort to make the CPA profession more accessible while maintaining high standards. AICPA, state CPA societies, CPA firms and the Controllers Council have initiatives to reverse the talent shortage, including building awareness about CPA and accounting career opportunities, and funding scholarships for CPA students.

*Note: Last updated on December 18th, 2025