Why was CPA licensure modernization pursued?

The CPA profession is a rewarding career with endless opportunities to serve the public and make a real difference for individuals, businesses and communities. But it’s become clear that the current path to licensure isn’t working for everyone. Requiring an extra year of education beyond a bachelor’s degree has added cost, delayed licensure and created barriers for too many talented people.

At the same time, demand for CPAs continues to rise—faster than the number of new professionals entering the field. This shortage puts extra pressure on today’s CPAs, affects client service and ultimately risks the public trust. These challenges are compounded by changes in the profession itself, shifting client needs and evolving expectations from the next generation.

These factors have led the profession and regulators, including CalCPA and the CBA, to work together on modernizing the CPA licensure framework—removing barriers and creating requirements that are more inclusive, flexible and accessible. AB 1175 is the product of those efforts.

Do I need a degree in accounting?

No. Under the new framework, you’ll need a bachelor’s degree plus an accounting concentration. That could be a bachelor’s degree in accounting or a degree in another field combined with the right mix of accounting and business courses to meet the concentration.

So, whether you set out from day one to become a CPA or discovered the profession later in your academic or professional journey, you’ll still have options to meet the education requirements.

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When do the new licensure changes take effect?

The new licensure requirements start on Jan. 1, 2027, while the updated CPA mobility provisions take effect a year earlier, on Jan. 1, 2026. If you’re already working toward licensure under the current rules, you can stay on that path until Dec. 31, 2028, when the legacy pathways officially close.

I just graduated (or am about to). Should I get licensed now under the 150-unit model or wait until 2027 for the new model?

There isn’t a single “right” answer—it really depends on your goals, circumstances and how you want to build your career. Here are some things to think about:

You might consider applying now under the legacy 150-unit model if …

• You’re already graduating with 150 units or are only a few courses away. For example, if you double majored, earned AP or college credits in high school, switched majors mid-stream or transferred credits from another school, you may be close to 150 semester units.

• A master’s degree appeals to you because you want to specialize in tax, audit, data analytics, information systems or another area where advanced academic training provides a strong foundation.

• You think additional coursework, like communication, data analytics or business skills, will boost your confidence and competitiveness before you start your career.

You might consider waiting for the new licensure framework if …

• You’d benefit from gaining practical experience in a professional setting right away.

• Entering the workforce and earning a paycheck sooner is important to you.

• Minimizing student loans or out-of-pocket education expenses is a top priority.

• It would take you longer than a year to get to the required 150 semester units. 

Keep in mind: Even if you decide to wait for the new pathway to kick in (Jan. 1, 2027), there’s still plenty you can do now. This is the perfect time to focus on studying for and passing the CPA Exam. Candidates who start the exam process soon after finishing school often do better because the material is fresh and they have more time to dedicate to studying. Once you’re working full-time, competing priorities can make the exam process more challenging.

Building experience while completing exam sections will have you well-positioned to apply for licensure when the new requirements take effect in 2027.

What if I’ve already taken the exam or started gaining experience before the new framework takes effect?

You won’t lose any of the progress you’ve made. Exam credits and qualifying experience you’ve completed will still count when you apply for licensure under the new framework. Even before the new rules take effect, we encourage students and candidates to continue working on their exams and experience.

Is the current licensure framework going away?

Not right away. The current 150-semester-unit pathway will remain available until Dec. 31, 2028. This transition period ensures that anyone who already planned their licensure journey under the old rules can continue without disruption.

Is this new licensure model the same for all states?

Not exactly. Many states—working alongside AICPA and NASBA—have already updated, or are in the process of updating, their licensure frameworks. While each state may take a slightly different approach, the models being adopted are conceptually very similar to California’s new framework. Because licensure requirements are set at the state level, it’s always a good idea to double-check with the board of accountancy in the state where you plan to work, connect with your state CPA society or talk with your academic adviser to make sure you have the latest information.

Does this licensure framework impact my ability to work in other states?

Not necessarily. Many states—along with the AICPA and NASBA—have already taken, and are expected to continue taking, steps to update licensure frameworks and adjust cross-border practice rules to preserve the seamless mobility CPAs have long relied on. Since licensure requirements are set at the state level, it’s always best to check with the state board of accountancy where you plan to work, connect with your state CPA society or talk with your academic adviser for the most up-to-date information. California is also working closely with national stakeholders to help ensure CPA mobility remains strong across state lines.

Do all paths lead to the same CPA license?

Yes. All paths lead to the CPA license—what matters is choosing the one that fits your goals, learning style and career timeline.

Will I need to attend a CBA-recognized college or university?

No. You will still have the flexibility to attend any accredited college or university you choose. The CBA won’t be recognizing entire schools, but it may recognize certain degree programs as automatically meeting the minimum educational requirements for licensure. Attending one of these recognized programs can make the process easier, but it’s not required—students from other accredited programs can still qualify, with their coursework reviewed individually if needed, much like it is today.

What should I do now?

• Join CalCPA. Membership is free for students and free your first year as a candidate. We’ll connect you with resources, tools and opportunities to plan your academic path and CPA career journey.

• Check the CBA’s website. Stay current on licensure requirements and updates as regulations are developed.

• Talk it out. Ask other students, CPAs, professors or employers you’ve interned with about their experiences. Their insights can help you think through what path makes sense for you.

• Know your priorities. Write down your goals and preferences: your learning style, career interests (both short-term and long-term), skills you want to build, timing and budget, and where you are now in your education. This will help you figure out the pathway that gives you the best return on your investment.

How was this framework developed?

The new framework was the result of a broad, collaborative effort. CalCPA worked closely with the California Board of Accountancy (CBA) and stakeholder groups from across the country. In California, this included the creation of a California Pipeline Advisory Group (CPAG) made up of members from firms of all sizes, academic institutions and professionals at different career stages and backgrounds. Their role was to evaluate potential changes; provide feedback; assess impacts on candidates, CPAs and consumers; and guide solutions to pipeline challenges.

The CBA also led extensive information-gathering efforts, including surveys, town halls, focus groups and presentations from national organizations such as the AICPA, NASBA and CalCPA.

In the fall of 2024, the CBA approved a legislative proposal—supported by CalCPA—to modernize California’s licensure requirements and mobility provisions. AB 1175 is the culmination of these collaborative discussions and months of stakeholder input.