North Carolina Sets a New Standard for CPA Licensure

This move hit harder than a surprise audit; North Carolina has officially rewritten the rules of the CPA pathway. Starting January 1, 2026, the state will offer a brand-new route to licensure, one that doesn’t require the once-sacred 150 college credit hours. And unlike some statehouse squabbles, this bill didn’t just pass. It sailed through with full bipartisan support. For a profession desperately trying to plug into its leaky talent pipeline, this isn’t just a policy tweak; it’s a full-on wake-up call.

The 150-Hour Rule

Back in the ‘90s, the 150-hour rule was supposed to raise the bar, provide more education, and produce better CPAs. But fast-forward to 2025, and that extra year of college has become a dealbreaker. Enrollment in accounting programs is shrinking faster than a summer intern’s attention span. Young professionals are asking, Why should I shell out for a fifth year of school when tech, finance, and even TikTok offer faster paydays with fewer hoops? Employers aren’t thrilled either. With audit roles sitting vacant and boomer CPAs retiring the droves, the profession needed a change, not in standards, but in access.

New Law, New Options

The new legislation, titled the Accounting Workforce Development Act, doesn’t eliminate the 150-hour path. It simply adds a second, equally valid option. Here’s how it breaks down:

• Option A: 150 semester hours, a bachelor’s degree with an accounting concentration, one year of experience, and a passing score on the CPA exam.
• Option B: 120 semester hours (a standard bachelor’s degree), accounting concentration, two years of experience, and a passing score on the CPA exam.

The difference lies in how the requirements are balanced. North Carolina is saying that an extra year of job experience can be just as valuable as an extra year in the classroom.

Support Was Stronger Than a Q4 Close

You’d think something revolutionary would stir up controversy, but nope. The bill passed 109–0 in the House and 45–0 in the Senate. That’s not just approval; that’s a mic drop. “Senate Bill 321 represents thoughtful, forward-looking reform,” said NCACPA board chair Kelly Puryear. “It opens doors for capable, motivated students and strengthens the pipeline of talent needed to serve our businesses, communities, and economy.” And this isn’t happening in isolation. North Carolina joins at least 20 states-including Ohio, Virginia, Indiana, and New York-that have introduced or passed similar CPA pathway laws. 

Why NC’s Version Hits Different

A few standout features make North Carolina’s bill one to watch:

• Built-in Mobility: Unlike some states, NC didn’t need to tinker with out-of-state reciprocity rules. Already, licensed CPAs from other states can practice there without red tape, as long as they’re in good standing.
• No Drama, Just Action: The legislation didn’t overhaul exams or ethics rules. It simply rebalanced what counts, saying loud and clear that real-world experience matters.
• Model Simplicity: The implementation is clean, and that makes it easy to scale. No messy pilot programs or drawn-out timelines.

Robert Broome of NCACPA summed it up perfectly: “North Carolina is a model for how automatic mobility can work.” 

What Does This Mean for Firms and Future CPAs?

If you’re hiring in NC, listen up. This bill changes how firms should scout, support, and develop new talent.

• Rethink eligibility filters: That finance major with two years of internal audit experience? They could now qualify, even without a fifth year of school.
• Strengthen training programs: Build longer internships and development pipelines that guide candidates through the two-year experience model.
• Update HR systems: Two distinct CPA paths mean tracking and compliance just got more nuanced.

For students, the change is even bigger. You don’t have to choose between going broke for 30 more credits or bailing on the CPA dream. You can earn your stripes through hard work on the job, not just in a lecture hall. 

Will This Solve the CPA Pipeline Crisis?

It addresses one of the most frequently cited reasons students skip the CPA route altogether. When combined with better compensation, stronger mentorship, and clearer career paths, laws like this can help. Importantly, this change doesn’t make the CPA credential easier. The exam is still rigorous. Ethics requirements remain intact. What’s changing is the journey, not the destination. Firms may benefit from candidates with two full years of experience by the time they’re licensed. That’s not lowering standards. It’s strengthening them where it matters most in practice.

Next Stop: The Rest of the Country

North Carolina isn’t a one-off. Similar legislation has been passed or is pending in at least 20 other states. It’s a moment. As NCACPA CEO Mark Soticheck said, “We are proud to have worked collaboratively with state leaders to ensure North Carolina’s families and businesses continue to have access to the financial expertise they need now and in the future.” The real test comes in 2026, when the new rule kicks in. Will more students pursue accounting? Will firms adapt? If the results are positive, brace yourself, more states will join the party.

Adapt or Get Left Behind

North Carolina’s move isn’t just reform; it’s a challenge to the rest of the profession. Do we want to cling to legacy rules while talent drains? Or are we willing to modernize the CPA journey for a new generation? This law proves you can protect the CPA brand without putting up walls that keep great people out. As other states watch and learn, one thing is clear: the CPA pipeline won’t fix itself, but this is how it starts. Follow MYCPE ONE Insights on LinkedIn to get sharper, jargon-free takes on what matters in accounting, finance, and beyond.