Tennessee expands paths to CPA licensure

The Tennessee General Assembly passed legislation backed by the Tennessee Society of CPAs adding an extra pathway to a CPA license, as more states make efforts to alleviate the shortage of new accountants.

SB 1316/HB 1330, introduced by Senate Majority Leader Jack Johnson and House Majority Leader William Lamberth on behalf of the administration, was filed for introduction on Feb. 6. The legislation aligns with Tennessee Governor Bill Lee's goal to streamline state boards and simplify licensing. Members of the Tennessee Society of CPAs lobbied for licensing changes in February.

The legislation offers two pathways to licensure for prospective CPAs starting Jan. 1, 2026. Applicants can either:

• Ccomplete the traditional path of at least 150 semester hours of college education including a bachelor's degree plus one year of accounting experience; or,
• Complete at least 120 semester hours of college education including a bachelor's degree plus two years of accounting experience.

For both options, the coursework needs to include an accounting concentration as determined by Tennessee State Board of Accountancy rule.
In addition, the legislation includes CPA practice mobility provisions so CPAs can still practice across state lines. Current and future CPAs who don't have a principal place of business in Tennessee will be able to practice in the state if they hold a valid CPA license in good standing from another state and if, at the time of licensure, they showed evidence of having passed the Uniform CPA Exam. They need to consent to the jurisdiction and disciplinary authority of the TSBOA, comply with the applicable statute and board rules of the state, and cease offering services in Tennessee if their license in the state of issuance is deemed to be no longer valid. These changes will take effect July 1, 2025.

(Read more: See what other states are doing to expand paths to becoming a CPA.)

"This legislation is a key step in ensuring that the demand for skilled accounting professionals, specifically licensed CPAs, can be met now and in the future," said TSCPA president and CEO Kara Fitzgerald in a statement Monday. "Tennessee was a leader in advocating for the 150-hour rule in the 1990s, and as the needs of the profession change, Tennessee will continue to lead in evolving our licensure model to make sure we meet those needs."

The bill will now be sent to Gov. Lee and, once he signs it, will become effective on the dates stated above.

Other states besides Tennessee have been expanding beyond the traditional 150-hour requirement for CPA licensure with alternative pathways. Earlier this month, Iowa added another pathway to CPA licensure and Georgia passed a CPA licensure bill.