Key Takeaways

  • Wisconsin Governor Tony Evers signed a CPA licensure reform bill on Thursday, effective immediately. The Wisconsin Institute of Certified Public Accountants (WICPA) confirmed the news in a press release on Friday. The new law allows Wisconsin applicants with a bachelor's degree to choose a new certification path: passing the CPA exam and accumulating two years of relevant work experience, without needing to complete additional higher education requirements.
  • Assembly Bill 696 is now 2025 Wisconsin Act 166, which revises several requirements for the CPA exam and practice and adds "more flexible, balanced paths between education and work experience... aligning Wisconsin with other Midwestern states to encourage more people to enter the profession." The governor's office stated this in a statement forwarded to CFO Dive via WICPA.
  • This industry-driven nationwide reform aims to reverse the decline in accounting program enrollment by offering alternative certification paths that do not require 150 credit hours or five years of higher education. WICPA President and CEO Tammy Hofstede said in a statement: "The number of new CPAs entering the profession remains a hot topic and a challenge for firms and organizations of all sizes. Addressing workforce development is complex and involves many variables, and making the CPA license more accessible is critical to securing the future of the profession."

Dive Brief

Wisconsin's new CPA bill, in the state nicknamed "the Badger State," comes as state legislatures across the country are rapidly passing and submitting similar licensure reform bills for governors to sign.

Late last month, New Hampshire lawmakers sent their respective CPA bills to Governor Kelly Ayotte's desk for signature. This week, Arizona lawmakers submitted a CPA licensure bill to Governor Katie Hobbs on Wednesday; on Friday, a Kansas CPA pathway bill was presented to Governor Laura Kelly; meanwhile, Kentucky Governor Andy Beshear has signed that state's legislation.

"The 120-credit rule has essentially become the status quo," said Jack Castonguay, associate professor of accounting at Hofstra University in New York, in an email. He noted that states are effectively repealing the 150-credit rule that should not have been passed in the first place. "Today's underclassmen will not know a world that requires 150 credits. When people mention CPA, they will understand it means graduating, passing the exam, and working for a few years."

Overall, since the beginning of last year, about 34 states have incorporated new laws or rules offering alternative pathways into their regulations, according to statistics from Robert J. Pawlewicz, assistant professor of accounting at the Robins School of Business at the University of Richmond in Virginia, who has been tracking licensure reform across the country.

The pace of reform has far exceeded what many expected just a few months ago. For example, some experts closely watching the issue predicted that a few states would still be holding out by the end of this year. But as it stands now, there are no true "wait-and-see" states. Even states that have not yet introduced legislation—Maine, North Dakota, and Wyoming—have indicated plans to reform, according to the Minnesota Society of Certified Public Accountants.

For ongoing tracking of CPA licensure reform developments, visit CFO Dive'stracking page。