When New York Governor Kathy Hochul signed a bill last Friday providing an alternative path to becoming a Certified Public Accountant (CPA), supporters breathed a sigh of relief. The bill had been awaiting her signature since passing the state legislature in June, sparking speculation about its prospects. Calvin Harris Jr., CEO of the New York State Society of CPAs (NYSSCPA), said, "I know this made some members a bit anxious, but we were never worried." He noted that the bill received near-unanimous support in the legislature, and that previous accounting-related legislation had also waited until November to be signed.

Harris is now focused on the 12-month transition period, with the new law set to take effect on November 21, 2026. He welcomed this arrangement, saying it will be used to finalize details of the new path. "The reality is, once you have a new path, there's a lot to handle," Harris said, noting that a longer transition period allows leadership time to clarify details and lets the industry and similar associations conduct outreach.

This change is part of a nationwide push in the accounting industry to lower barriers to entry. Similar to at least 23 other states, New York will allow CPA candidates to obtain licensure with just 120 college credits (typically equivalent to four years of higher education), two years of relevant work experience, and passing the CPA exam. Unlike some states, New York will retain the existing path, which requires 150 credits (typically equivalent to five years of higher education), one year of experience, and passing the exam. "The 150-credit path is not going away," Harris emphasized.

Looking ahead to the transition period, Harris said it remains to be clarified which specific courses will be required under the 120-credit path. There is currently a preliminary classification, but the specific educational components have not yet been formally determined. "My advice to candidates is to keep an eye on developments," he said.

Currently, the signed bill (A7613B) only stipulates that candidates' coursework should include an "accounting program" of at least 120 semester credits, meeting undergraduate coursework credit requirements as specified in commissioner regulations; or an accounting program of 150 semester credits, also meeting relevant coursework requirements. The ambiguity in the legislation has left some students confused. Jack Castonguay, associate professor of accounting at Hofstra University in New York, said that while students are excited about the change, many questions remain unanswered.

"They and I had hoped the New York State Office of the Professions would issue transition guidance when the bill was signed," Castonguay said in an email Tuesday. But as it stands, students need to make decisions about graduate school in the coming months without knowing whether they'll need 120 or 150 credits when applying, or even whether they should apply to sit for the CPA exam before guidance is issued. "They don't want to risk applying and starting to study, only to find that because they applied early, they're subject to the 150-credit rule rather than the 120-credit rule that doesn't take effect until November 2026," Castonguay said. "I feel regret because I can only guess, and they need concrete answers."

Harris and Castonguay both pushed back against critics' concerns that the new rules could weaken industry standards by reducing college credit requirements. Harris noted that these licensure rules are not unprecedented; many veteran CPAs obtained their licenses before the state shifted to the 150-credit requirement decades ago. Castonguay also mentioned that from accounting to law and medicine, many professions' requirements no longer reflect the current environment—students are better prepared, and there are more internship and job opportunities early in college. Meanwhile, education costs have risen while student loan options have decreased. "Careers, job opportunities, and education have all changed, but these professions' standards haven't responded to the changes," Castonguay said in the email. "They're stuck in the past."

A new era of accounting rules has now swept across roughly half the country. With New York's law enacted, 24 states have now passed new CPA path laws or adopted new licensure rules. According to Robert J. Pawlewicz, assistant professor of accounting at the University of Virginia's Robbins School of Business, Massachusetts, New Jersey, Michigan, and Arkansas may follow suit by the end of the year. For updates on CPA licensure changes, see CFO Dive's tracker.