Key Takeaways

  • Texas has become the latest state to pass legislation providing an alternative path to CPA licensure that does not require 150 college credit hours. The bill was passed, according to a post on the Texas Society of CPAs (TXCPA) website on Thursday.
  • According to TXCPA, the legislation aims to attract more new talent into the accounting talent pipeline and alleviate the industry's labor shortage. The bill will allow CPA candidates to obtain licensure after completing a bachelor's degree in accounting, accumulating two years of work experience, and passing the CPA exam.
  • Senate Bill 262 has passed both chambers of the state legislature and is now heading to Texas Governor Greg Abbott to be signed into law. In a release, the Texas Society of CPAs said: "This transformative legislation provides an additional path to CPA licensure—helping to strengthen the talent pipeline while maintaining the high standards expected of CPAs as trusted experts."

Deep Dive

CFO Dive's "CPA Licensure Path Tracker" is closely monitoring the introduction and passage of related legislation across the country. Despite early critics' concerns that such changes could lower professional standards, the initiative has gained significant momentum this year.

Texas, along with Tennessee, Indiana, Montana, Iowa, Georgia, Ohio, Virginia, New Mexico, Utah, and Hawaii, has passed legislation eliminating the 150-college-credit-hour requirement—which effectively amounts to an additional year of coursework.

According to TXCPA, the Texas bill passed unanimously in both the state Senate and House. Under the bill, once it takes effect on September 1, 2025, the Texas State Board of Public Accountancy will adopt rules necessary to implement the changes. According to Corey Butler, a spokesperson for the Minnesota Society of CPAs, it is currently unclear whether the bill passed on Wednesday or Thursday. The society is closely tracking CPA licensure path legislation across states.