A new Pa. law aims to chip away at the accountant shortage

In the midst of a talent shortage at Pennsylvania accounting firms, a new state law creates a new path to becoming a certified public accountant, allowing candidates to get more work experience in lieu of extra college credits.

Previously, in addition to passing a four-part exam, CPA candidates were required to have 150 credit hours of education — more than the 120 typically required for a bachelor’s degree — along with one year of professional experience.

Pennsylvania’s new law allows candidates with 120 credit hours and two years of professional experience to become a CPA if they pass the exam.

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CPA licensure is required to complete certain accounting services, including auditing public companies and submitting reports to the Securities and Exchange Commission. Getting the certification opens up more career opportunities with higher pay.

“The goal of this legislation change is to open up as many options for candidates as possible,” said Jen Cryder, CEO of the Pennsylvania Institute of CPAs, which advocated for the bill.

Aspiring CPAs still have the option to get a master’s degree or 150 total credit hours and complete just one year of professional work, Cryder noted. That route “makes sense for a lot of people,” she said, especially those who graduate from high school having already earned some college credits.

“If you’re not coming into college with a lot of credits in hand, not only is the cost of the extra 30 credits of education a significant consideration,” Cryder said, but “I actually hear that staying out of the workforce for that extra year is just as problematic for folks, if not more so, than the extra 30 credit hours.”

The new law, known as Act 27 of 2025, also includes a measure to ensure that CPAs can continue to practice across state lines as licensure rules evolve. That’s historically been permitted, Cryder said, but the Pennsylvania law codifies it. That allows, for example, a New Jersey-licensed CPA who works in Philadelphia to do an audit in Pennsylvania.

Act 27 also gives CPA candidates more time to pass all four sections of the CPA exam.

They now have 30 months to do so, beginning when they pass the first section, vs. the previous time limit of 18 months. Pennsylvania’s State Board of Accountancy voted to make that change in its regulations two years ago, Cryder explained, but the modification still hasn’t become official, so the legislation allowed it to take effect sooner.

“Just in the last 24 hours, we’ve gotten so many calls and emails from candidates saying, ‘Oh my gosh, thank you so much,’” Cryder said. “That one’s really exciting in the moment for a candidate who is trying to work their way through the exam.”

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The legislation was cosponsored by western Pennsylvania state Sens. Scott Hutchinson, a Republican, and Nick Pisciottano, a Democrat. Both chambers of the state legislature voted unanimously in support of the bill, and Gov. Josh Shapiro signed it into law on June 30.

“Act 27 lowers barriers to entry while preserving high standards, which is exactly what we need to attract new talent into the field,” Hutchinson said in a statement. “This is about investing in Pennsylvania’s future — in our businesses, schools, governments, and communities that rely on trusted financial professionals.”

As for the accountant shortage, Cryder said enrollments in accounting programs have been on the rise more recently, though they haven’t surpassed pre-pandemic levels yet.

“We’re moving in a great direction,” she said.