States move beyond the 150-hour rule

ByPaige Hagy

States are looking beyond the 150-hour requirement for CPA licensure and adding alternative pathways amid the profession's pervasive ongoing talent shortage.

Ohio and Virginia were the first two states to pass legislation establishing new pathways to licensure, with others following suit by introducing similar bills to their state legislatures, including Iowa this week. The bill language varies slightly by state, but one requirement that firmly remains is passing the Uniform CPA Examination.

See below for where things stand in those states that are moving forward on the issue, and read our feature here.

OHIO

Ohio's state governor signed House Bill 238 into law on Jan. 9, which creates additional pathways to licensure.

Starting Jan. 1, 2026, two additional pathways to CPA licensure will be available:

A master's degree with the required accounting coursework, one year of experience and passing the CPA exam; or,
A bachelor's degree with the required accounting coursework, two years of experience and passing the exam.

VIRGINIA

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In mid-February, the Virginia House and Senate passed House Bill 2042 and Senate Bill 1042, backed by the Virginia Society of CPAs, that creates an additional pathway to licensure and ensures practice mobility for out-of-state CPAs.

Starting Jan 1, 2026, an additional pathway to licensure will be available: a baccalaureate degree with the required accounting coursework, two years of experience and passing the CPA exam.

The VSCPA worked with Del. Holly Seibold and Sen. Adam Ebbin with support from VSCPA member and CPA Del. Joe McNamara to pass the bills, which both passed the full General Assembly unanimously.

ARKANSAS

The Arkansas State Board of Accountancy has drafted language to additional pathways to licensure via rule changes. Arkansas is still awaiting approval from the governor's office. Then, the language will go out for a comment period. The state hopes for the rule to go live by January 2026, Arkansas Society of CPAs CEO Marsha Moffitt said.

CALIFORNIA

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The California Board of Accountancy, with the support of the California CPA Society, is sponsoring legislation to add additional pathways to licensure and to ensure practice mobility. The two groups aim to introduce the bill this month.

The bill would establish an additional pathway to licensure: a bachelor's degree with a concentration in accounting, two years of accounting experience and passing the CPA exam (a candidate may substitute a specified master's degree or accounting certificate program for up to one year of the required experience).

FLORIDA

The Florida Institute of CPAs introduced legislation in the state's House and Senate ahead of the 2025 legislative session. The bill would establish three pathways to licensure:

A master's degree in accounting or finance, one year of experience and passing the exam;
A bachelor's degree in accounting or finance, two years of experience and passing the exam; or,
A bachelor's degree in any field, with coursework in accounting and finance, two years of experience and passing the exam.

All three paths include a mandatory minimum concentration in accounting and business coursework.

In May 2024, the Florida Institute of CPAs, in tandem with Nova Southeastern University, announced the Bridge to CPA initiative. The FICPA has five firms signed to participate in the fall 2025 semester and is currently in discussion with additional interested firms.

The program, launched last fall, allows firm employees to complete their additional 30 credit hours through Nova Southeastern's Master's in Accounting program with zero cost to them. Tuition is covered through the combined effort of the university, employer firms, and scholarships from the FICPA and the Florida Department of Business and Professional Regulation.

GEORGIA

On April 7, House Bill 148, supported by the Georgia Society of CPAs, unanimously passed the Georgia General Assembly, adding two pathways to CPA licensure starting Jan. 1, 2026:

A master's degree in accounting or taxation and one year of relevant experience; or,
A bachelor's degree in accounting and two years of pertinent experience.

The two alternatives complement the existing pathway of a bachelor's degree with 150 semester hours and one year of experience.

ILLINOIS

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On Feb. 3, the Illinois CPA Society introduced legislation to create two additional pathways to CPA licensure and ensure practice mobility. Two lawmakers who are also CPAs, Reps. Natalie Manley and Amy Elik, signed on to introduce House Bill 2459.

The bill amends the Illinois Public Accounting Act to add two pathways:

A bachelor's degree with 120 credit hours (including a concentration in accounting), two years of accounting experience and passing the exam; or,
A master's degree, a bachelor's degree with 30 hours of concentration in accounting, one year of accounting experience and passing the exam.

INDIANA

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The Indiana CPA Society introduced House Bill 1143 in the 2025 Indiana Legislative Session that would establish additional pathways to licensure:

A bachelor's degree, two years of experience and passing the exam;
A bachelor's degree with a concentration in accounting, totaling 150 credit hours, one year of accounting experience and passing the exam; or,
A post-baccalaureate degree with a concentration in accounting, one year of accounting experience and passing the exam.

The bill is authored by Rep. Heath VanNatter, coauthored by Rep. Mitch Gore and sponsored by Rep. Linda Rogers.

Separately, last year, Indiana passed a law requiring most of its state's colleges and universities, with a few exceptions, to offer three-year degree programs by July 2025.

IOWA

On April 8, House Bill 177 passed the Iowa Legislature to create an additional pathway for CPA licensure: A bachelor's degree with required accounting coursework, two years of work experience and passing the exam. Assuming Gov. Kim Richard's signs the bill into law, the changes will be effective July 1, 2026.

MASSACHUSETTS

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HD.3145 and SD.1246 were introduced in the Massachusetts Legislature, which advocate for additional pathways and automatic practice mobility.

A bachelor's degree, two years of experience and passing the CPA exam;
A bachelor's degree with 30 additional credit hours, one year of experience and passing the CPA exam; or,
A master's degree, one year of experience and passing the CPA exam.

MINNESOTA

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The Minnesota Society of CPAs introduced a bill in February 2023 that creates two additional pathways: 120 credits and two years of work experience, or 120 credits and both one year of work experience and 120 CPE credits earned concurrently. The current model requires 150 credit hours and one year of work experience.

The 2024 legislative session ended without resolution, but the MNCPA reintroduced the legislation this year.

NEW JERSEY

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The New Jersey Society of CPAs currently offers numerous initiatives, including the CPA Pathway Apprenticeship with Withum and Seton Hall University, and a work-for-credit program with PwC and Saint Peter's University.

The NJCPA is hoping to draft legislation by spring and pass by bill by the summer to create alternatives to the 150-hour rule, according to its CEO and executive director Aiysha "AJ" Johnson.

NEW MEXICO

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House Bill 296 was introduced into the New Mexico legislature, which would establish additional pathways to licensure:

A baccalaureate degree or its equivalent plus thirty credit hours in accounting or business, one year of experience and passing the CPA exam;
A baccalaureate degree with a concentration in accounting or business, two years of experience and passing the exam; or,
A master's degree with a concentration in accounting or business, one year of experience and passing the exam.

NORTH CAROLINA

In early March, the Accounting Workforce Development Act (SB321) was filed in the North Carolina General Assembly, offering an additional pathway to CPA licensure. The bill, backed by the North Carolina Association of CPAs, would allow CPA candidates to become licensed with a bachelor's degree in accounting, two years of relevant work experience and successful completion of the Uniform CPA Exam.

PENNSYLVANIA

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Pennsylvania introduced a Senate bill to add an additional pathway to CPA licensure: 120 college credits, two years of relevant work experience verified by a Pennsylvania CPA and passing the CPA exam.

The existing pathway is still available for candidates.

The initial memo introducing the bill is led by Sen. Scott Hutchinson, R-Venango, and Sen. Nick Pisciottano, D-Allegheny. A companion bill is set to be introduced in the state House by Rep. Ben Sanchez, D-Montgomery, and Rep. Keith Greiner, CPA, R-Lancaster.

OREGON

Senate Bill 797 was introduced in the Oregon State Legislature, which would establish additional pathways to licensure:

A baccalaureate degree, two years or more of experience and passing the CPA exam;
A master's degree, one year or more of experience and passing the exam; or,
A baccalaureate degree or higher and completed 150 credit hours, one year or more of experience and passing the exam.

TENNESSEE

Senate Bill 1316 and House Bill 1330 were introduced in the Tennessee General Assembly on Feb. 10, which would establish additional pathways to licensure and ensure automatic mobility.

TEXAS

Senate Bill 262 and House Bill 1757 were introduced in the Texas Legislature in February, which would establish additional pathways to licensure. Senate Bill 522 was also introduced, which would ensure practice mobility.

UTAH

Senate Bill 15 was introduced in the Utah State Legislature, which would establish additional pathways to licensure and automatic mobility:

A bachelor's degree with a concentration in accounting or business, two years of experience under the supervision of a licensed CPA and passing the CPA exam; or,
A master's degree, one year of experience under the supervision of a licensed CPA and passing the CPA exam.