Core Dynamics

  • Illinois lawmakers have passed legislation providing an alternative path to CPA licensure. The state Senate passed House Bill 2459 unanimously on Thursday with a vote of 58-0, as recorded on the Illinois General Assembly website. The bill now awaits the signature of Illinois Governor JB Pritzker to become law.
  • Similar to many other states aiming to attract more talent into the profession, Illinois' bill offers a new path that does not include the 150-credit-hour requirement. Under the bill, CPA candidates can qualify by completing a bachelor's degree focused on accounting, accumulating two years of work experience, and passing the CPA exam.
  • The bill amends the Illinois Public Accounting Act and is set to take effect on January 1, 2027, a full year later than similar legislation in Ohio and six months later than the effective date of Iowa's path bill. Martin Green, senior vice president and legislative counsel for the Illinois CPA Society, said the later date allows time for the development of new administrative rules needed to implement the changes. The Society supports these changes. "We want to get this right," Green said in an interview.

In-Depth Analysis

Since late last year, at least 17 states—and counting—have passed legislation modifying their CPA licensure rules. This growing list includes Ohio, Virginia, Indiana, Minnesota, Iowa, Montana, Tennessee, Georgia, South Carolina, Texas, New Mexico, Utah, Nevada, Oregon, Alaska, Hawaii, and now Illinois.

The intent of these legislative changes is to eliminate or provide alternatives to the previous standard path to licensure, which required 150 semester hours of college credit, one year of professional experience, and passing the CPA exam. Supporters of the new laws within the accounting profession hope to alleviate the accounting talent shortage by removing the 150-hour requirement. They view this requirement as an expensive barrier, typically equivalent to a total of five years of university or graduate study.

Some states, including Illinois, have retained the existing combination of requirements while also offering two additional options: one involving a master's degree in accounting, one year of relevant work experience, and passing the exam; and the other being the aforementioned bachelor's degree path. There are signs that this effort may be putting pressure on states that wish to remain competitive in their accounting profession.

"As states across the Midwest and the nation advance their own legislation to protect and grow their CPA pipelines, passing this legislation is a significant step in keeping Illinois CPAs at the forefront of the national business landscape; it protects the needs of businesses, nonprofits, and government agencies in our state; and it ensures there is a pipeline of next-generation accounting talent ready to step up and serve," said Geoffrey Brown, president and CEO of the Illinois CPA Society (ICPAS), in a statement in a press release.

Nevertheless, Green cautioned Illinois students and schools not to change their course of study or curricula respectively at this time, because the legislation is not retroactive and the formal rulemaking process may take longer than the effective date. "Students and professors are calling and asking if they can start doing this now, and we're saying, 'No, there are no rules in place yet.' If you're an accounting student, it's too early to focus on this now," Green said.