California’s New CPA Pathway Makes Licensure Easier

If it feels like fewer people want to become accountants these days, you’re not imagining it. The number of college students earning accounting degrees dropped nearly 8% between 2021 and 2022, according to a recent AICPA report (Journal of Accountancy). That’s a lot of calculators collecting dust.

Between student debt, long hours, and the dreaded 150-credit rule, many future CPAs have started wondering if the payoff is really worth it. California lawmakers took notice — and decided to make some long-overdue changes.

Thanks to Assembly Bill 1175, signed by Governor Gavin Newsom, California is modernizing how accountants earn their licenses. Starting in 2026, candidates can take a more flexible route to certification: a 120-credit bachelor’s degree in accounting plus two years of hands-on experience. It’s a major step toward making the CPA journey more realistic for today’s students — and, honestly, a sigh of relief for anyone tired of explaining why they’re still in school after four years.

Key Takeaways

• AB 1175 reduces the education requirement from 150 to 120 semester credits, aligning with a standard four-year degree.
• Experience requirements double from one year to two, emphasizing real-world learning.
• California’s reform starts January 1, 2026, with both old and new pathways available through 2028.
• The move addresses a national CPA shortage, as retirements rise and accounting graduates decline.
• CPA prep providers like Becker are adapting resources to help candidates navigate the new eligibility and experience mix.

Why California Changed Course for CPA Licensure

The traditional CPA pathway often meant an extra year of school — and for many, extra debt. By scaling back the educational requirement to 120 credits, the state hopes to make the career more accessible, particularly for students from underrepresented and lower-income backgrounds.

“College is a lot of financial pressure on the student as well as the family,” said Saurav Dutta, director of Chico State’s accounting program and chair of the CalCPA Education Committee. “Bringing it down to four years evens the playing field, and we’re hoping enrollment in accounting programs will increase.”

Still, the reform maintains California’s commitment to quality. Candidates must complete two full years of supervised accounting experience, ensuring that future CPAs gain extensive real-world training before licensure..

The Bigger Picture: A National Pipeline Problem

California’s update arrives as the accounting industry faces a historic shortage of qualified CPAs. Nationwide, 75% of current CPAs are expected to retire within the next 15 years, while new accounting graduates have declined by more than 30% since 2016.

The California Board of Accountancy (CBA) and CalCPA have worked closely with educators, firms, and national bodies like NASBA and AICPA to explore more flexible paths to licensure. Their consensus: the fifth-year requirement wasn’t necessarily improving readiness — but it was discouraging entry.

This new “dual-path” model allows candidates to choose between:

• A 150-unit track with one year of experience, or
• A 120-unit track with two years of experience.

In both cases, candidates must still pass the rigorous Uniform CPA Examination, which remains the central measure of professional competence. This is why the best CPA exam prep, including adaptive learning tools, simulations, and mock exams, continues to be the go-to study option for candidates preparing under either route.

What the California CPA License Transition Looks Like

The new pathway begins January 1, 2026, with a transitional window through December 31, 2028, allowing candidates to choose between the current and new systems.

Here’s the breakdown:

• Until 2025: Current 150-unit plus one-year experience pathway remains standard.
• Starting 2026: 120-unit plus two-year experience route becomes available.
• Through 2028: Both routes are accepted.
• After 2028: The new model becomes the primary standard.

Why This Matters for the CPA Profession

The reform isn’t just a California issue — it’s part of a broader national reevaluation of how to sustain and grow the CPA pipeline. By emphasizing competency and experience over credit hours, California aims to ensure that licensure reflects skill, not just time spent in a classroom.

At the same time, the longer experience requirement helps bridge the gap between academia and practice. Employers may benefit too, as they can integrate mentorship, ethics training, and real-world learning earlier into their talent development plans.

So, what should accountants and accounting students in California do next?

Next Steps for Aspiring CPAs in California

• Confirm your degree path. Talk to your school’s accounting department or the California Board of Accountancy (CBA) to verify whether your degree aligns with the new 120-credit option.
• Plan your experience early. Since the requirement doubles to two years, start looking for internships or entry-level accounting roles now — ideally under the supervision of a licensed CPA.
• Stay updated on timelines. The new pathway begins January 1, 2026, but both old and new systems will run through 2028. Knowing where you fall on that timeline will help you plan efficiently.
• Start exam prep sooner rather than later. The CPA Exam remains rigorous and unchanged. Trusted providers like Becker have already adjusted their materials for California’s new pathway, offering flexible self-study and live options that help candidates bridge academic learning with professional application.
• Use your experience strategically. The extra year isn’t just a hurdle — it’s a chance to specialize. Work in tax, audit, or advisory to strengthen areas that will appear on the new CPA Evolution–aligned exam.
• Document everything. Keep organized records of coursework, supervised experience hours, and professional development — they’ll make your licensure application smoother when the new system launches.

Together, these steps can help future CPAs transition smoothly into the new structure while maintaining California’s strong professional standards.

Bottom Line

California’s CPA licensure reform represents a forward-thinking compromise between accessibility and professional integrity. For many aspiring accountants, it removes a financial obstacle that kept them from pursuing certification — without diminishing what the title stands for.

Students who use this period to plan smartly — earning degrees aligned with the new rule, gaining supervised experience, and using trusted exam prep tools like Becker — will be well-positioned to enter a modernized accounting profession that’s more inclusive, practical, and future-ready.