Dive Brief:

• Tennessee lawmakers on Monday passed legislation that changes the state’s licensure rules for certified public accountants, adding a second path for obtaining a CPA license that requires 120 hours of college credit, two years of professional experience and the passing of the CPA exam, according to Kara Fitzgerald, president and CEO of the Tennessee Society of CPAs.
• With the vote Tennessee joins a growing number of states that have passed new laws aiming to ease an accounting labor crunch by offering alternative routes to CPA licensure that remove the 150-hour college credit hurdle. Under the state’s new law the existing route that requires 150 hours of credit hours, one year of experience, and the passing of the exam will remain in place, and, in both cases, candidates must complete an accounting concentration — a certain number of accounting classes — as defined by the Tennessee State Board of Accountancy, Fitzgerald said.
•  "We're not able to fill the vacancies left by the retirees and we believe this is one way, not the only way, to drive more people into accounting. I don’t think licensure should be a one-size-fits all," Fitzgerald said in a recent interview. The CPA provisions, which would be effective Jan. 1, 2026 once signed by the governor, were part of a broader piece of legislation, the Less is More Act (SB1316 and HB1330). 

Dive Insight:

Tennessee along with Indiana, Georgia, Ohio, Virginia, New Mexico, Utah and Hawaii have passed new laws that either eliminate rules requiring 150 hours of college credit for licensure or offer an alternative licensure path that substitutes more industry experience for what is effectively a costly fifth year of college. 

CFO Dive’s Tracking CPA licensure paths is keeping a close watch on new legislation as it is introduced and passed throughout the country. While early critics of the move raised concerns such changes might lower professional standards, Fitzgerald disputed the misconception that the change is making licensure easier. 

"What we're attempting to do is to allow for learning on the job versus a traditional academic environment,” Fitzgerald said. “I don't think the experience component makes it easier, it's just an alternative to the traditional learning model."