Key Takeaways

  • North Carolina lawmakers passed a bill in the House on Tuesday that provides an alternative path to becoming a licensed CPA that does not require 150 college credit hours, equivalent to five years of higher education, according to the North Carolina General Assembly website.
  • The Accounting Workforce Development Act (Senate Bill 321) still needs to be signed into law by Governor Josh Stein. The bill would allow candidates with a bachelor's degree or higher with a major in accounting, two years of experience in the accounting field, and who have passed the CPA exam to obtain a license. The current path, which requires 150 credit hours, a bachelor's degree in accounting, one year of experience, and passing the CPA exam, would remain in place. The bill is expected to take effect on January 1, 2026.
  • The North Carolina Association of CPAs called the bill's passage a milestone, stating it "marks a significant victory in strengthening our state's accounting talent pipeline," according to a statement on the association's website.

Dive Insight

Including North Carolina, at least 20 states have passed CPA pathway bills aimed at alleviating the accounting talent shortage, typically by substituting an extra year of professional experience for the additional year of college education that the 150-credit-hour requirement entails. Supporters of lowering the credit threshold say this requirement discourages many students from choosing the accounting profession.

North Carolina's vote follows similar legislation passed by New York lawmakers earlier this month. Since late last year, Ohio, Virginia, Indiana, Minnesota, Iowa, Montana, Tennessee, Georgia, South Carolina, Texas, New Mexico, Utah, Nevada, Oregon, Alaska, Hawaii, Illinois, Connecticut, New York, and now North Carolina have all passed CPA pathway bills.

The bill passed unanimously in both chambers of the North Carolina General Assembly: the House passed it 109-0 on Tuesday, and the state Senate passed it 45-0 on April 3. The bill was sponsored by four Republican state senators: Danny Britt Jr., Brad Overcash, Tim Moffitt, and Michael Lazzara.

Other states, such as Virginia, have also successfully positioned similar measures as workforce development initiatives. Emily Walker, vice president of advocacy and pipeline at the Virginia Society of CPAs, previously told CFO Dive that the state's CPA law also passed unanimously and received bipartisan support because the bill was framed as removing barriers to work. Meanwhile, some states' CPA bills have stalled this year, including in Florida and Maine.

In North Carolina, the bill was introduced to the state House as a jobs bill, according to Robert Broome, vice president of advocacy and outreach at the North Carolina Association of CPAs. The state faces a national trend: difficulty filling vacancies left by retiring baby boomer accountants.

But unlike other states, the new legislation does not require adjustments to how CPAs licensed in other states who wish to work in North Carolina are treated. This is because North Carolina already has a substantial equivalency system: accountants with a valid out-of-state license, no criminal record, and who comply with the law can practice in the state without paying a fee or notifying the state, Broome said.

"North Carolina is an example of how substantial equivalency works," Broome said in an interview. "We are in a different situation than many other states."

For updates on CPA licensure changes, check out CFO Dive's related tracker.

Editor's note: This story has been updated to include comments from the North Carolina Association of CPAs.