States race to relax CPA licensure thresholds: 150-hour requirement faces adjustment
Facing a talent shortage in the accounting industry, dozens of U.S. states are advancing legislation to allow CPA licensure through alternative routes, no longer mandating 150 semester hours of college credit. This move could reshape the national uniform licensure standard that has been in place for decades. CFO Dive provides an interactive map to track policy changes across states in real time.
State legislatures across the United States are racing to take measures to alleviate the talent shortage in the accounting industry—a predicament that has made it harder for financial controllers to build teams. Currently, dozens of states are considering, proposing, or passinglegislation that provides alternative pathways to CPA licensure, or taking other steps to adopt new licensing rules that no longer require 150 semester hours of college credit.
These changes, which are gaining support, have the potential to reshape the relatively uniform CPA licensure system that has been in place in the United States for decades. Previously, most states required applicants to pass the CPA exam, complete 150 semester hours of college credit (effectively equivalent to an extra year of college), plus one year of professional experience. Now, state legislatures and accounting boards are moving to relax educational requirements by eliminating or offering alternatives to bypass the 150-hour rule, typically by substituting an additional year of work experience for the extra year of schooling.
To help financial leaders and accountants stay informed about this shift, CFO Dive's interactive map (see below) tracks the adoption of legislation and new rules by state. We will continuously update the map and related reports so readers can always access our ongoing coverage of CPA licensure issues.