If you read our article last year on CPA licensure reform, you may remember that Kentucky was on the holdout list. Seven states were still clinging to the traditional 150-hour model with no alternative pathway in sight. Kentucky was one of them. Not anymore.
On April 3rd, Kentucky Governor Andy Beshear signed House Bill 45 into law, creating an alternative route to CPA licensure that takes effect July 16, 2026. The new pathway allows candidates to qualify for the CPA exam with a bachelor’s degree (120 credit hours) and two years of relevant CPA-verified work experience. As is the case in all states, the CPA exam is still required. Rigorous licensing standards remain intact, and the Kentucky Board of Accountancy retains full oversight. The change simply removes a barrier that the industry believes was keeping qualified people out of the profession.
The 150-hour rule has been a fixture of CPA licensure since the 1980s. The reasoning was sound at the time: raise the bar, elevate the profession, ensure rigor. What nobody anticipated was that the requirement would eventually become one of the primary reasons the profession is running short of people.
For a profession centered around math, things just didn’t add up. An extra year of school costs time, money, and opportunity. For students without financial support or career-changers who already hold a degree and real-world skills, the 150-hour rule functions less like a quality filter and more like a gate that rewards those with resources. The profession has been paying that price in the form of declining accounting majors, CPA exam candidates, shrinking pipelines, and escalating competition for qualified staff for more than a decade.
Though the issue was evident, the AICPA, NASBA, and state societies moved slowly until 2025. Now, forty-plus states recognized the issue and acted. Kentucky was one of the last states to take action. That is no longer the case.
The Kentucky House Bill 45 preserves the traditional 150-hour pathway while also adding a second option: a bachelor’s degree plus two years of relevant, CPA-verified work experience. Candidates pursuing either route must still pass the CPA exam and meet all requirements set by the Kentucky Board of Accountancy.
The bill was supported by the Kentucky Society of CPAs. KyCPA CEO and President Darlene Zibart described HB45 as a thoughtful and proactive response to the evolving needs of the accounting profession, noting that expanding access while maintaining high standards strengthens the CPA pipeline for the long term.
The legislation also addresses practice mobility. CPAs licensed in states with equivalent requirements can now practice in Kentucky without obtaining a separate state license, aligning Kentucky with the broader national framework that most states have already adopted.
The pace of reform since last year has exceeded most projections. States that were listed as having active legislation at the time have since signed their bills into law. States not yet on the radar have also acted. And of the original seven holdouts, four have crossed the finish line. Here is where every state that has moved since the previous article stands as of May 2026.
Signed into law
Awaiting the governor’s signature
Legislation in progress
Legislation planned
The legislation does not lower the bar. The experience requirement is specifically designed to ensure that candidates without the additional coursework demonstrate competency through verified professional work. What it does is widen the door to people who were categorically excluded not because they lacked ability, but because they lacked the time or money for an extra semester of school.
For firms, the practical effect is a broader talent pool, a more accessible path for career-changers, and alignment with the national mobility framework that has become standard in most other states. The firms that recognize this shift as a structural change rather than a headline will be better positioned to take advantage of what it actually opens up.
For more on how licensure reform is reshaping firm recruiting and growth strategy, read How State CPA Licensure Changes May Reshape Your Firm’s Future.