Across the country, CPA licensure requirements are currently being reformed to provide more options for those seeking to earn this credential. Just days after it cleared the Pennsylvania State legislature, Act 27 of 2025, was signed into law by Governor Shapiro on June 30, 2025. These new requirements will help to create more opportunities for aspiring CPAs in the state.
This announcement is especially good news in today’s business world that is experiencing a shortage of accounting personnel due to fewer candidates deciding to sit for the CPA exam and a decline in college students enrolling in accounting degree programs each year. More than 20 other states have also recently passed legislation modernizing the licensing process to address the evolving needs of the profession.
Original CPA Licensing Requirements
Under prior law, to become a CPA, candidates must have a) earned a Master’s degree or earned a Bachelor’s degree with at least 150 total semester hours (including the required accounting concentration) at an accredited institute; b) have one year of qualifying work experience; and c) passed all 4 parts of the CPA exam.
Proponents of reform argued that the 150-credit hour rule effectively required an extra year of education, serving as a higher than necessary barrier to entry that discouraged potential CPAs.
New Licensing Pathway
While the prior option is still available, Act 27 created a new pathway to qualify for CPA licensure that essentially allows candidates to substitute work experience for credit hours. To become a CPA, candidates must now have a) completed a Bachelor’s degree or higher (with 120 credit hours, including the required accounting concentration); b) have at least two years of qualifying work experience; and c) passed all 4 parts of the CPA exam.
Enhanced Practice Mobility
The new law also helps address the shortage of accountants by improving professional flexibility across state lines. Act 27 allows out-of-state CPAs to practice in Pennsylvania without obtaining a Pennsylvania certificate and permit, provided they meet specific education and experience requirements.
For more details about CPA licensure in PA, visit PICPA’s website.
