Senate lawmakers in the US state of Iowa have passed legislation introducing a new pathway for certified public accountant (CPA) licensure.
This new route allows candidates to become licenced with a bachelor’s degree, two years of accounting work experience, and passing the CPA exam.
This initiative aims to broaden access to the CPA profession within the state.
According to a press release from the Iowa Society of CPAs (ISCPA), the bill will undergo a certifying process before being presented to Iowa Governor Kim Reynolds for signing.
If approved, the law will take effect on 1 July 2026, giving educational institutions and accounting firms a year to prepare for this new licensing option.
The legislation, which was backed by ISCPA, also addresses practice mobility, allowing licenced CPAs from outside Iowa to operate within the state.
ISCPA said this change eliminates state-based substantial equivalency requirements, enhancing interstate mobility law by adopting an individual-based practice privilege approach.
In addition, the legislation retains the two existing licensure options in Iowa.
These include a bachelor’s degree plus a master’s degree in accounting with one year of work experience and the CPA exam, or a bachelor’s degree with required coursework, 30 additional credit hours, and one year of work experience with the CPA exam.
According to ISCPA, the new pathway is designed to ease entry into the accounting profession by addressing barriers such as the time and cost associated with completing an additional 30 university credits.
While offering greater flexibility, it still upholds the core pillars of the CPA designation—education, exam, experience, and ethics, the organisation added.
Expanding access to the profession is seen as essential amid a decline in newly qualified CPAs and a rise in retirements.
In its statement, ISCPA said: “The public relies on CPAs to protect their financial interests in businesses, government, charitable organisations and more.
“Licencing and mobility legislation like Iowa’s bill have been introduced or signed into law in seven other states this year. We expect more will be enacted as additional states introduce similar bills or accountancy board rule changes.”
In February 2025, the Virginia House and Senate unanimously passed the legislation to introduce a new pathway to CPA licensure.
