Tracking Changes to the 150 Rule: State-by-State Updates for CPA Hopefuls

The 150 credit hour rule has long been a cornerstone of CPA licensure in the United States, requiring aspiring Certified Public Accountants to complete 150 semester hours of college education—typically a bachelor’s degree (120 hours) plus an extra year of study. But as of now, this requirement is under scrutiny, with some states rethinking its necessity amid an accountant shortage and calls for more accessible pathways to licensure. For CPA hopefuls, keeping track of these changes is crucial to planning your education and career. Here’s a state-by-state update on where the 150 rule stands today, along with what it means for your journey to becoming a CPA.

The 150 Rule: A Quick Recap

Introduced by the American Institute of Certified Public Accountants (AICPA) in 1988 and adopted nationwide by 2015, the 150 credit hour rule was intended to ensure CPAs had a robust educational foundation to handle the profession’s growing complexity. However, critics argue it creates financial and logistical barriers, deterring talent at a time when the Bureau of Labor Statistics projects a need for 136,400 new accountants annually—a demand far outpacing the supply of graduates. This tension has sparked a wave of reform, with some states leading the charge to modify or even ditch the rule.

That said, because it took three decades to get every state board in line with the 150 rule, it is unlikely that any changes will happen soon. Large governing agencies tend to not be fast moving.

State-by-State Updates on Changes to the 150 Rule

Here’s a snapshot of where key states stand as of March 2025, based on the latest developments:

• Ohio: A trailblazer in reform, Ohio passed House Bill 238, signed into law on January 8, 2025, offering an alternative pathway. Candidates can now pursue licensure with a bachelor’s degree (120 hours), two years of relevant work experience, and a passing CPA Exam score—or stick with the traditional 150-hour route with one year of experience. This flexibility makes Ohio a testing ground for competency-based models over strict credit requirements.
• Virginia: Following Ohio’s lead, Virginia updated its requirements effective January 1, 2026 (pending final approval). Aspiring CPAs can qualify with 120 hours, two years of experience, and the CPA Exam, or opt for a master’s degree with one year of experience. This shift aims to attract more candidates without compromising standards.
• Utah: Posts on X and recent reports suggest Utah is poised to become the third state to shed the 150-hour rule entirely, potentially by mid-2025. While details are still emerging, the state appears to favor a 120-hour-plus-experience model, aligning with the national push for accessibility.
• Minnesota: Minnesota has been a hotbed of debate. In 2023, the Minnesota Society of CPAs proposed a bill allowing 120 hours plus two years of experience as an alternative to 150 hours. Although the legislation stalled in 2024, it’s slated for reintroduction in 2025, signaling persistent momentum for change.
• South Carolina: South Carolina is exploring similar alternatives, with legislative discussions underway to allow 120 hours plus additional experience. No final action has been taken, but the state’s accounting community is vocal about reducing barriers.
• New Jersey: Like South Carolina, New Jersey is in the exploratory phase. State CPA societies are engaging with lawmakers to assess whether a competency-based pathway could work, though no concrete proposals have passed yet.
• California: A major player due to its size, California remains committed to the 150-hour rule for now. However, pressure from firms like KPMG, which has publicly called for its elimination, could push for future revisions.
• New York: New York upholds the 150-hour standard, with no immediate plans for change. Starting August 1, 2027, the state will enforce stricter course requirements within those 150 hours, emphasizing upper-level accounting credits.
• Texas: Texas sticks to the traditional 150-hour path, requiring specific accounting and business courses. Discussions about reform are minimal, reflecting a cautious approach to altering a system tied to CPA mobility across states.

The Bigger Picture: What’s Driving These Changes?

The push to rethink the 150 rule stems from multiple forces:

• Talent Shortage: Accounting enrollments are declining, with an 8% drop in degrees from 2014 to 2020, per AICPA data. The extra year of education is seen as a deterrent.
• Equity Concerns: Studies, like one from MIT Sloan, show a 26% drop in minority CPA candidates after the rule’s adoption, highlighting its disproportionate impact.
• No Proven Benefit: Research from Utah State University and others finds no link between the extra 30 hours and improved CPA quality or exam performance.

In response, the AICPA and National Association of State Boards of Accountancy (NASBA) proposed a “CPA Competency-Based Experience Pathway” in September 2024, open for comments until December 6, 2024. If approved, it could standardize a 120-hour-plus-experience option nationwide by late 2025, though mobility concerns—ensuring CPAs can practice across state lines—remain a sticking point.

What This Means for CPA Hopefuls

For students and career-changers, these shifts offer both opportunity and complexity:

• Plan Strategically: If you’re in a state like Ohio or Virginia, you might fast-track your career with 120 hours and experience. In states sticking to 150, consider cost-effective options like community college credits or online programs.
• Stay Informed: Legislative changes can take months or years. Check your state board of accountancy’s website or the NASBA site for real-time updates.
• Leverage Flexibility: Where alternatives exist, weigh the trade-offs—fewer credits might mean earlier entry but could limit mobility if not universally adopted.

Visualizing the Shift: A Quick Reference Table

Looking Ahead: The Future of the 150 Rule

As of March 2025, the 150 rule’s fate varies by state, reflecting a patchwork of innovation and tradition. Pioneers like Ohio and Virginia could inspire a domino effect if their models prove successful, while the AICPA/NASBA proposal might unify the approach. For CPA hopefuls, this evolving landscape means more options—but also more diligence. Whether you’re aiming for 150 hours or banking on a streamlined path, staying ahead of these changes to the 150 rule will be key to unlocking your CPA future.

If you are looking to get your CPA in the near future, we wouldn’t bank on these changes happening too soon. We suggest you get your 150 credit hours quickly and affordably and get moving on your career.