For decades, becoming a CPA meant completing 150 college credit hours, typically requiring an extra year of school beyond a bachelor’s degree. Now that’s changing. In 2025, the American Institute of Certified Public Accountants (AICPA®) and the National Association of State Boards of Accountancy (NASBA) approved model legislation allowing states to offer another path: a bachelor’s degree with an accounting concentration (120 credit hours) plus two years of professional experience. Many states have enacted or are implementing the pathway as of 2026. If you assumed you needed more school to become a CPA, it may be time to check your state’s requirements.
Why States Are Changing the 150-Hour Rule
The extra year of education required to reach 150 credit hours can add time and cost to the CPA licensure process. With concerns about the accounting talent pipeline, states and professional organizations have been exploring more flexible ways for candidates to meet licensure requirements without changing the standards of the CPA Exam. In 2025, AICPA and NASBA approved an updated model framework that gives states another option.
What the New Model Says
The AICPA/NASBA model offers three paths to licensure:
| Path One (New) | Path Two (Existing) | Path Three (Existing) |
|---|---|---|
| Bachelor’s degree in accounting with an accounting concentration (120 credit hours) + two years of professional accounting experience + passage of the CPA Exam | Bachelor’s degree in accounting with an accounting concentration (120 credit hours) + 30 additional credit hours (150 total) + one year of professional accounting experience + passage of the CPA Exam | Graduate degree in accounting + one year of professional accounting experience + passage of the CPA Exam |
The key trade-off in Path One is straightforward: Instead of spending time and money earning 30 more academic credits, candidates complete an additional year of professional experience. The CPA Exam and credential remain the same. What changes is the combination of education and experience used to qualify for licensure.1
How the Experience Requirement Works
The new pathway pairs a bachelor’s degree with additional professional experience, with specific requirements determined at the state level. Some states define that experience in years, while others establish a required number of hours or additional criteria.
In other words, the 120-hour pathway does not eliminate a licensure requirement. It shifts more of the candidate’s preparation from the classroom to professional experience. Always check your state board’s requirements to determine exactly what experience qualifies.
States that Have Enacted Alternative CPA Licensure Pathways
The table below shows states with enacted legislation as of August 2026. Effective dates matter: A state may have enacted a new pathway before candidates can actually use it. Check your state board’s website to confirm that the pathway is in effect and review its current education and experience requirements before applying.2,3
| State | Effective Date | Experience Requirement |
|---|---|---|
| Alabama | Oct. 1, 2026 | 2 years |
| Alaska | Jan. 1, 2026 | 2 years of relevant work experience |
| Arizona | Dec. 31, 2026 | 2 years |
| Arkansas | March 5, 2026 | 2 years |
| California | Jan. 1, 2027 | 2 years of general accounting experience |
| Colorado | Jan. 1, 2027 | 1,800 hours (internship eligible) |
| Connecticut | Oct. 1, 2025 | 2 years |
| Delaware | July 1, 2026 | 2 years |
| Georgia | Jan. 1, 2026 | 2 years |
| Hawaii | April 10, 2025 | 2 years of professional public-accountancy experience, plus one year substituted for the 30 education hours |
| Idaho | July 1, 2026 | 2 years |
| Illinois | Jan. 1, 2027 | 2 years |
| Indiana | Jan. 1, 2027 | 2 years |
| Iowa | July 1, 2026 | 2 years |
| Kansas | April 23, 2026 | 2 years |
| Kentucky | July 15, 2026 | 2 years |
| Louisiana | Aug. 1, 2026 | 2 years |
| Maryland | Oct. 1, 2026 | 2 years |
| Minnesota | Jan. 1, 2026 | 2 years |
| Missouri | Aug. 28, 2026 | 2 years |
| Montana | Jan. 1, 2026 | 2 years |
| Nebraska | July 17, 2026 | 2 years |
| Nevada | Feb. 27, 2026 | 2 years |
| New Hampshire | April 22, 2026 | 2 years |
| New Jersey | Feb. 11, 2026 | 2 years |
| New Mexico | Jan. 1, 2026 | 2 years |
| New York | Nov. 21, 2026 | 2 years |
| North Carolina | Jan. 1, 2026 | 2 years |
| Ohio | Jan. 1, 2026 | 2 years |
| Oregon | Jan. 1, 2026 | 2 years |
| Pennsylvania | June 30, 2025 | 2 years (3,200 hours) |
| Rhode Island | June 23, 2026 | 2 years (3,640 hours) |
| South Carolina | June 30, 2025 | 2 years |
| South Dakota | July 1, 2026 | 2 years |
| Tennessee | Jan. 1, 2026 | 2 years |
| Texas | Aug. 1, 2026 | 2 years |
| Utah | July 1, 2026 | 2 years |
| Vermont | June 8, 2026 | 2 years |
| Virginia | Jan. 1, 2026 | 2 years |
| Washington | Nov. 20, 2025 | 2 years |
| West Virginia | May 24, 2026 | 2 years |
| Wisconsin | April 4, 2026 | 2 years |
Note: The traditional 150-hour pathway remains available in states that have added an alternative pathway. The 120-hour path is an additional option, not necessarily a replacement.
Jurisdictions with Legislation in Progress
Some jurisdictions are considering alternative CPA licensure pathways, while others have introduced, advanced, or temporarily enacted legislation that has not yet resulted in a permanent new pathway.
| District of Columbia | Florida | Massachusetts | Michigan |
Other Jurisdictions Requiring 150 Hours for the Standard Licensure Path
Some jurisdictions have not enacted a 120-hour pathway and continue to require 150 credit hours for licensure.
| Commonwealth of the Northern Mariana Islands (CNMI) | Guam | Maine | North Dakota |
| U.S. Virgin Islands | Wyoming |
If your jurisdiction has not adopted an alternative pathway, review its current requirements before deciding how to proceed. Licensure and mobility rules vary by jurisdiction, so do not assume that qualifying in another state will automatically satisfy your home state’s requirements.
What the 120-Hour Pathway Means for Interstate Practice
If you plan to practice across state lines, the 120-hour pathway raises an important question: Will a license earned under the new pathway be recognized in other states? The updated AICPA/NASBA licensure framework is designed to preserve CPA mobility as states adopt different pathways to licensure. However, because states must enact their own laws and rules, it’s important to understand the requirements wherever you expect to practice.
Mobility Under the New Framework
The updated AICPA/NASBA model shifts mobility from a state-based substantial-equivalency approach toward an individual-based practice privilege. The goal is to allow qualifying CPAs to practice across state lines with one license, even as states adopt different pathways to licensure.4
How those privileges apply depends on the laws and rules adopted by individual jurisdictions, so CPAs should verify the requirements of any state where they intend to practice.
Safe Harbor for Existing CPAs
The updated model also includes safe-harbor provisions for CPAs licensed under differing education, experience, and exam requirements as of Dec. 31, 2024. These provisions are intended to preserve mobility for existing CPAs as states update their licensure requirements.
What This Means if Your State Has Not Adopted the Pathway Yet
If your state has not enacted a 120-hour pathway, don’t assume that applying for licensure in another state will automatically provide a route back to your home state. Education, experience, initial licensure, reciprocity, and mobility requirements can vary by jurisdiction.
Before pursuing licensure through another state, check the requirements of both jurisdictions and consider contacting the applicable state boards of accountancy or CPA societies.
120 Hours vs. 150 Hours: How to Decide
Choosing between the 120-hour and 150-hour pathways comes down to how you want to complete your remaining licensure requirements. The 120-hour option can get you into the workforce sooner, but you’ll need to build additional qualifying experience before becoming licensed. The 150-hour route requires more education upfront but may shorten the experience requirement and align better with certain recruiting opportunities. Consider the time, cost, and career opportunities associated with each path before deciding which makes the most sense for you.
When to Choose 120 Hours with Two Years of Experience
The 120-hour pathway may be a good fit if:
- You have completed your bachelor’s degree in accounting and do not want to delay starting your career with additional schooling.
- You plan to work in public accounting, corporate accounting, or another CPA-supervised environment and can accumulate the required experience hours while also studying for the exam.
- You want to enter the workforce sooner and use employer-sponsored exam prep resources while working toward licensure.
When to Choose 150 Hours (or a Graduate Degree)
The 150-hour or graduate degree pathway may be a good fit if:
- You are already enrolled in or planning a master’s program in accounting or taxation.
- Your target employer (Big Four, regional firm, or corporate employer) specifically recruits at the graduate level and you want to maximize those opportunities.
- You prefer to complete the additional education upfront and qualify for licensure with the shorter experience requirement available under the traditional pathway.
The Exam Is the Same Either Way
No matter which pathway you pursue, you take the same Uniform CPA Examination. AUD, FAR, REG, and your chosen Discipline section don’t change based on whether you pursue licensure with 120 or 150 credit hours. Choosing the 120-hour path changes how you qualify for licensure, not what you need to know on exam day.
Whichever pathway you choose, the CPA Exam is the same.
Frequently asked questions (FAQs)
In states that have adopted a 120-hour pathway, candidates may be able to pursue licensure with a bachelor’s degree that meets the state’s accounting education requirements, plus additional professional experience and passage of the CPA Exam. Requirements vary, so check your state board’s current rules before applying.
Both paths lead to CPA licensure and require candidates to pass the same CPA Exam. The difference is how candidates satisfy the education and experience requirements. Under the AICPA/NASBA model, the bachelor’s-degree pathway requires two years of professional experience, while the traditional 150-hour pathway requires one.
Not necessarily. Qualifying experience is defined by each state and may include work outside public accounting. Before accepting or relying on a particular role to fulfill the requirement, confirm that the position, type of work, supervision, and required duration meet your state board’s rules.
Check your state board’s current licensure requirements before making a decision. Although another jurisdiction may offer an alternative pathway, qualifying for licensure there doesn’t automatically mean you will qualify for licensure or mobility privileges in your home state. If you are considering this approach, verify the requirements in both jurisdictions first.
It depends on the mobility and reciprocity rules in the states involved. The updated AICPA/NASBA model includes individual-based mobility and safe-harbor provisions intended to preserve interstate practice privileges as states adopt different licensure pathways. Because states enact their own laws and rules, verify the requirements of the state where you plan to practice.
Yes. The CPA Exam is the same regardless of the licensure pathway you pursue. UWorld CPA Review prepares candidates for the content tested across all four sections of the Uniform CPA Examination, so your exam prep does not change based on whether you pursue the 120- or 150-hour pathway.
References
- National Association of State Boards of Accountancy. (2025, May 13). AICPA and NASBA approve model legislation for new CPA licensure path. https://nasba.org/blog/2025/05/13/aicpa-and-nasba-approve-model-legislation-for-new-cpa-licensure-path/
- National Association of State Boards of Accountancy. (n.d.). Pathways. https://nasba.org/pathways/
- Liger-Burton, N. (2025, December 23). New CPA licensure pathways and CPA mobility. National Association of State Boards of Accountancy. https://nasba.org/blog/2025/12/23/new-cpa-licensure-pathways-and-cpa-mobility/
- Controllers Council. (2026, April 22). How states are rethinking CPA licensure to address the accountant shortage. https://controllerscouncil.org/how-states-are-rethinking-cpa-licensure-to-address-the-accountant-shortage/
