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Governor Signs AB 1175 Modernizing CPA Licensure in California

California has taken an important step to simplify tax compliance for taxpayers, tax professionals, and tax agencies. With the signing of 

 (McNerney), the state has updated its conformity date with the federal Internal Revenue Code from Jan. 1, 2015, to Jan. 1, 2025. 

For years, California has taken a selective approach to federal tax conformity—reviewing each change one by one. While this gave lawmakers the chance to weigh fiscal impacts and policy considerations on major issues, smaller technical updates often fell through the cracks. Over time, that created real challenges: taxpayers and practitioners were stuck working with outdated rules, keeping separate records and making countless adjustments because California’s tax laws lagged nearly a decade behind federal law.

SB 711 helps close that gap. The bill brings California into alignment with a wide range of federal tax changes made since the last major update. While it doesn’t automatically adopt every federal change—which can be costly or politically complex—and it does not include the latest OBBB changes, it does bring in many of the smaller, technical provisions that had been left out of step for years and sets California up for future conformity efforts.

Tax conformity may not make headlines, but it has a huge impact on the day-to-day work of tax professionals and the ability for taxpayers to meet their tax compliance obligations. SB 711 is a smart, practical policy update that keeps California’s tax system current and relevant.

This bill reflects collaborative work by the author, legislative committee staff, the Franchise Tax Board, and stakeholders across the tax community. CalCPA was proud to actively support this effort on behalf of our members and the clients and communities they serve. 

Federal Tax Conformity Legislation Signed

California has taken an important step to simplify tax compliance for taxpayers, tax professionals, and tax agencies. With the signing of SB 711 (McNerney), the state has updated its conformity date with the federal Internal Revenue Code from Jan. 1, 2015, to Jan. 1, 2025. 

CalCPA Staff

Big news—Gov. Gavin Newsom has signed AB 1175!

This bill—authored by Assemblymember Jacqui Irwin, sponsored by the California Board of Accountancy and supported by CalCPA—has been years in the making and is a huge win for our profession.

AB 1175 modernizes CPA licensure in California by creating more flexible, affordable and accessible pathways for future CPAs—while preserving the strong consumer protections our profession is known for.

While the demand for CPAs grows, it has become clear that the current path to licensure isn’t working for everyone. The extra year of education beyond a bachelor’s degree added cost, delayed licensure and created barriers for too many talented people.

With AB 1175, those roadblocks are removed and replaced with flexible pathways that recognize the different ways aspiring CPAs build the skills and experience needed for licensure—while still upholding the profession’s high standards of competence and integrity. 

Under AB 1175, CPA candidates must earn a bachelor’s degree with an accounting concentration, pass the Uniform CPA Exam and complete two years of general accounting experience. For added flexibility, candidates can substitute a qualifying master’s degree for one year of experience or an approved accounting certificate program for six months of experience. This gives candidates options to pursue the path that best fits their goals—while keeping strong consumer protections in place.

The new licensure pathways take effect Jan. 1, 2027.

The bill also strengthens California’s long-standing CPA cross-border practice program, ensuring CPAs can continue meeting consumer needs effectively across state lines.

We encourage you to stay connected with CalCPA and the California Board of Accountancy as AB 1175 regulations and implementation guidance are developed. This will help you—and the students, candidates and profession leaders you support—prepare to navigate these exciting changes.

California is leading the way in rethinking CPA licensure—not just for our state, but as a model for the entire country. And CalCPA members like you helped make this possible. Your engagement, voice and support of our advocacy efforts truly made a difference. Thank you for helping to shape the future of the profession.