State Updates
120-Credit CPA Pathway: Which States Allow It in 2026?
At least 32 states have enacted or are implementing alternatives to the 150-credit-hour CPA requirement. Here is the current landscape as of April 2026.
Published March 8, 20266 min readVerified as of April 28, 2026
The Shift Away From 150 Credits
For decades, most states required 150 college credit hours to become a licensed CPA — effectively a five-year degree. That is changing. Driven by a nationwide accounting talent shortage, states are creating alternative pathways that allow candidates to sit for the CPA exam and obtain licensure with a standard bachelor's degree (120 credits) plus additional work experience. In November 2025, NASBA and the AICPA gave their formal blessing to the 120-hour pathway model, accelerating state adoption.
States With Enacted 120-Credit Pathways
The following states have signed legislation into law creating alternatives to the 150-credit-hour requirement. Most follow a common model: bachelor's degree with accounting coursework (120 credits) plus two years of relevant experience, or a master's degree plus one year of experience.
- Ohio — HB 238, effective January 1, 2026. Bachelor's with accounting coursework + 2 years experience.
- Virginia — HB 2042 / SB 1042, effective January 1, 2026. Bachelor's with accounting concentration + 2 years experience.
- Georgia — HB 148, effective January 1, 2026. Bachelor's in accounting + 2 years experience.
- Oregon — SB 797, effective January 1, 2026. Bachelor's + 2 years experience or master's + 1 year.
- Utah — SB 15, effective March 25, 2025 (immediate). Bachelor's with concentration + 2 years experience.
- Hawaii — SB 1291, enacted April 10, 2025. Bachelor's + 2 years or master's + 1 year.
- New Mexico — HB 296, signed April 8, 2025. Bachelor's + 2 years or master's + 1 year.
- New Jersey — Signed into law January 2026. 25th state to change licensing laws.
- Texas — SB 262, effective August 1, 2026. Bachelor's + 120 hours + 2 years experience.
- New York — Enacted, effective November 21, 2026. 120 hours + 2 years experience.
- Illinois — Amends Public Accounting Act. Bachelor's with 120 credits + accounting concentration + 2 years experience.
- Idaho — HB 563, signed into law, effective July 1, 2026. Bachelor's (120 credits) + 2 years experience.
- Mississippi — HB 1137, signed March 17, 2026, effective July 1, 2026. Bachelor's + 2 years experience.
- Wisconsin — Act 166, signed April 3, 2026, effective immediately. Bachelor's with accounting concentration + 2 years experience.
- Maryland — HB 643, signed by Gov. Wes Moore April 2026, effective October 1, 2026. Bachelor's with accounting concentration + 2 years experience.
- Kentucky — HB 45, signed by Gov. Andy Beshear April 3, 2026, effective July 16, 2026. Bachelor's + 2 years CPA-verified experience.
- Arizona — SB 1181, signed by Gov. Katie Hobbs early April 2026, effective December 31, 2026. Bachelor's + 2 years experience plus individual mobility provisions.
- Kansas — HB 2573, signed by Gov. Laura Kelly April 9, 2026, effective July 1, 2026. Bachelor's + 2 years experience as alternative to the 150-hour rule.
- New Hampshire — HB 1259 (Chapter 34), signed by Gov. Kelly Ayotte April 22, 2026, effective immediately. Modifies education requirements and grants practice privileges to out-of-state CPAs with comparable qualifications.
States With Pending or Proposed Legislation
Several additional states have introduced 120-credit pathway bills that are moving through their legislatures. These include Arkansas, California, Colorado (SB26-076, passed both chambers April 2026 — awaiting governor's signature), Florida, Indiana, Iowa (HB 177, passed legislature April 2025 — awaiting governor), Massachusetts, Minnesota, North Carolina, Pennsylvania, and Tennessee. The pace of adoption is accelerating — industry observers expect 40 or more states to have a 120-credit pathway by end of 2026.
What This Means for CPA Candidates
If your state has an active 120-credit pathway, you may be able to sit for the exam and earn your license without completing a fifth year of college or a master's degree. The trade-off is typically an additional year of supervised work experience (two years instead of one). This can save candidates tens of thousands of dollars in tuition and get them into the workforce sooner. Check your specific state board for eligibility requirements, as each state's pathway has different effective dates and qualifications. Explore the data on our interactive pathway map.
How Atlas CPA Index Tracks This
We maintain state-by-state CPA requirement pages covering all 55 NASBA jurisdictions (50 states + DC, Guam, USVI, Puerto Rico, CNMI). Each page includes credit requirements, experience requirements, and pathway details where alternative pathways exist. We update these pages as new legislation takes effect.
Sources
- 1.Accounting Today — States Move Beyond the 150-Hour Rule(accessed Apr 17, 2026)
- 2.CFO Dive — Tracking CPA Licensure Paths(accessed Apr 17, 2026)
- 3.CFO Dive — Will 2026 Be a Decisive Year for CPA Pathways?(accessed Apr 17, 2026)
- 4.Controllers Council — How States Are Rethinking CPA Licensure(accessed Apr 17, 2026)
- 5.CFO.com — CPA Requirements by State(accessed Apr 17, 2026)
- 6.Accounting Today — Wisconsin Licensure Law Goes Into Effect(accessed Apr 17, 2026)
- 7.Accounting Today — Maryland approves CPA licensure pathways bill(accessed Apr 17, 2026)
Brennan Kolar
Founder, Atlas CPA Index
Brennan Kolar is the founder of Atlas CPA Index, an independent CPA review comparison platform covering all 55 U.S. jurisdictions. With over 10 years of experience with CPA review, he built Atlas to help candidates find the right review course based on how they actually learn, not which provider has the biggest ad budget.
Learn more about the author