In an announcement on Thursday evening, the American Institute of CPAs and the National Association of State Boards of Accountancy said they are advancing proposed changes to the Uniform Accountancy Act that would clear the way for states to adopt an additional path to CPA licensure while also adjusting practice mobility requirements.
Both groups said on Feb. 13 that the optional pathway “maintains the license’s integrity and protects the public while providing flexibility in response to stakeholder demand.”
The Uniform Accountancy Act, jointly published by the AICPA and NASBA, provides state legislatures and boards of accountancy with a national model that can be adopted as is or adapted to meet the needs of each individual jurisdiction.
The AICPA and NASBA asked the joint Uniform Accountancy Act committee to draft proposed model law language in two key areas:
- A bachelor’s degree + two years of experience as a pathway to licensure that incorporates a broad role for experience, to be determined at the state level.
- Individual-based practice privilege that incorporates a CPA’s ability to practice across state lines.
“Comment letters submitted on two recent AICPA and NASBA exposure drafts, as well as early 2025 state legislative activity, indicate a growing preference for an individual practice privilege and a bachelor’s degree plus two years of experience path,” the AICPA and NASBA said in a media release. “Feedback also supported a more in-depth study of competencies as they relate to the experience requirement.”
The proposal would also maintain the existing two pathways to CPA licensure:
- Master’s degree + one year of experience.
- Bachelor’s degree + 30 credits + one year of experience.
The proposed Uniform Accountancy Act language will be open for public comment for 60 days.
Susan Coffey, CEO of public accounting for the Association of International Certified Professional Accountants, said the proposal recognizes changes in the accounting profession and addresses talent needs.
“The accounting profession has seen a remarkable convergence in recent weeks of stakeholders around flexibility that creates greater access for those who are interested in pursuing a career in accounting,” she said in a statement. “A bachelor’s plus two years of experience path, in which states define the needed skills and competencies, is responsive to the market and protects the public.”
The proposal from the AICPA and NASBA comes at a time when discussions have heated up about whether the 150-hour rule for CPA licensure has contributed to the pipeline of accountants drying up in recent years. Because CPA candidates must complete 150 semester credit hours of education—30 credits beyond the typical 120 credit hours earned in a four-year undergraduate degree—many CPAs end up spending five years in college instead of four.
Several states have laid out their own legislative proposals on alternate pathways for CPA licensure. In early January, Ohio Gov. Mike DeWine signed legislation that provides two alternate pathways for accountants pursuing the credential and improves existing CPA interstate mobility laws.
“We look forward to the expertise and perspectives the 55 U.S. licensing jurisdictions will share during this next comment period,” said Daniel Dustin, president and CEO of NASBA. “We believe that any new proposal, and the feedback received from all stakeholders, will not only result in a thriving profession but also one that, because it keeps its eye on protecting the public, will allow that public to continue to trust in a CPA’s work.”
Shelly Weir, president and CEO of the Florida Institute of CPAs, said the group applauds the AICPA’s and NASBA’s decision and strongly endorses the proposed updates to the Uniform Accountancy Act. She calls the proposal “a massive step forward for the profession.”
“The language in the proposal closely mirrors the FICPA’s own priority bills that are currently moving through the Florida Legislature. It also brings the UAA into alignment with the actions of other societies, which—like us in Florida—have already filed legislation in their respective state houses,” Weir said in a message to FICPA membership on Feb. 14 “While an update to the UAA isn’t a cure-all, the proposed modifications will further protect practice privileges as individual states continue to make significant changes in how they regulate the profession.”
On LinkedIn Friday, Amber Setter, chief enlightenment officer for Conscious Public Accountants, called the news “a wonderful Valentine’s gift for the profession. This is the most loving thing to do for our future.”
She added: “In addition to watching this unfold with the individual states, we can only hope that the firms will change their hiring practices ASAP. Firms have strict boundaries on hiring candidates who are ‘CPA exam eligible.’ The way I’m reading the tea leaves is the additional educational requirements are dead. RIP 150-hours. 🏴☠️🪦🏴☠️”
The AICPA and NASBA opened a call for comments this past September on a proposed initiative aimed at helping CPA candidates meet initial licensure requirements by exhibiting their competency in specific professional and technical areas. Corresponding Uniform Accountancy Act model legislative amendments were also issued for discussion. Comments on the proposals are accessible via the NASBA and AICPA websites. The feedback pointed to support for the concept of competencies but not as proposed. Based on the volume and nature of responses, the AICPA and NASBA agreed to table the framework for intended purposes.
“As such, we are exploring plans for a longer-term, data-driven approach working with stakeholders to understand how competencies can help shape the future of our profession,” Coffey said. “This aligns with recommendations made in 2024 by the National Pipeline Advisory Group and reinforces the profession’s longstanding commitment to competence as a core principle already in our profession’s Code of Professional Conduct and in the UAA.”
The AICPA and NASBA said they plan to work to redefine the Uniform Accountancy Act processes for greater inclusivity and transparency, as well as devote more resources to helping CPAs with navigating practice mobility as states enact legislation.
“Through continued collaboration and alignment, we’ll be able to achieve this shared goal of growing pathways into the profession while protecting the public,” said Carla McCall, who serves as AICPA chair and co-chair of the Association of International Certified Professional Accountants. “This is an important and exciting step for our profession. We are ready to get this done.”
“The input and feedback from the members of the boards of accountancy and key stakeholders in the accounting profession is crucial to the UAA process,” added NASBA chair Maria Caldwell. “We appreciate the continued collaboration and expertise of the members of the joint UAA Committee.”
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Tags: Accounting, accounting education, AICPA, CPA exam, CPA licensure, NASBA
