Iowa passed legislation creating an additional pathway to CPA licensure.
Under the new pathway, CPA candidates will be eligible for licensure upon completing a bachelor's degree with the required accounting coursework, two years of relevant accounting work experience and completion of the CPA exam. The legislation also ensures practice mobility to allow out-of-state CPAs to operate in Iowa.
The bill, backed by the Iowa Society of CPAs, passed both chambers of the Iowa Legislature with a unanimous Senate vote and now awaits Gov. Kim Reynolds' signature. If signed into law, the changes will be effective July 1, 2026.
Iowa's two existing licensure pathways will remain: a bachelor's degree plus a master's degree in accounting and one year of work experience, or a bachelor's degree with the required accounting coursework plus 30 additional college credits and one year of work experience. Both paths require passing the CPA exam.
"This legislation reflects a forward-thinking approach to licensure that preserves the integrity of the CPA while opening the door to more aspiring professionals," ISCPA interim CEO Ardis Kelley said in a statement. "At a time when the profession is experiencing a decline of new licensees and increase in retirements, this is a much-needed step to attract new talent."
Various state CPA societies and state boards of accountancy are pushing for alternative paths to a CPA license to alleviate the shortage of accountants.
"We are thrilled Iowa is leading the way on these critical changes," Kelley added. "CPAs are essential to the financial well-being of businesses, government agencies and nonprofits. Removing unnecessary hurdles while maintaining high professional standards will help ensure our communities continue to benefit from a strong, thriving CPA profession."
