Modernizing the CPA Profession

Last year’s session of the Pennsylvania General Assembly was marked by tight partisan dynamics and historically low legislative productivity. Yet, it delivered one landmark achievement with lasting significance for CPAs. In fact, the legacy of 2025 looms large for the accounting profession.

Through sustained advocacy and bipartisan engagement, the PICPA secured unanimous passage of Act 27 of 2025, a sweeping modernization of Pennsylvania’s CPA licensure law. Signed by Gov. Josh Shapiro on June 30, the legislation expanded the available pathways to the profession and positioned Pennsylvania as the first state in the nation with this new pathway in effect. The reform stood out as a decisive step forward during a session when overall legislative output was muted.

Senate Bill 719 – now Act 27 of 2025 – delivers meaningful, practical reforms to CPA licensure in Pennsylvania. The law directly addresses long-standing concerns about a shrinking CPA pipeline and the rising cost of accounting education. Most notably, Act 27 establishes a new pathway to CPA licensure: a bachelor’s degree, passage of the Uniform CPA Examination, and two years of qualifying work experience. This option complements the existing pathways: passing the CPA Exam plus obtaining 150 credit hours and one year of work experience or a master’s degree and one year of experience. The new option preserves the profession’s high standards while removing a widely viewed barrier to entry – the expense and time needed for extra education.

The legislation also expands flexibility for CPA candidates by extending the exam completion window from 18 to 30 months, better reflecting the realities of balancing work, education, and personal responsibilities. In addition, Act 27 eliminates the reference letter requirement for most licensure applicants, streamlining a process many saw as having limited practical value.

A cornerstone of Act 27 is the adoption of automatic mobility for out-of-state CPAs. Under this framework – often described as a “driver’s license” model – CPAs licensed in other jurisdictions who meet Pennsylvania’s education and experience standards may practice in the commonwealth without obtaining a separate Pennsylvania license. This change supports workforce mobility in an increasingly national and interconnected marketplace.

Collectively, these reforms represent the most significant update to Pennsylvania’s CPA Law in decades. They reflect a profession and policymaking community that are responsive to evolving workforce realities, modern interstate standards, and the practical challenges facing aspiring CPAs and the employers who rely on them.

PICPA’s role in achieving passage of Act 27 was instrumental. Years of sustained advocacy, relationship-building with lawmakers, and coordinated member engagement across Pennsylvania culminated in broad legislative support. From grassroots outreach, to district office contact, to testimony and strategic policy briefings, the PICPA helped lawmakers understand how modernizing licensure strengthens both the profession and Pennsylvania’s broader economic competitiveness.

Lawmakers grappled with other complex issues in 2025 – the most significant being a protracted budget negotiation that dominated much of the legislative calendar. Ultimately the parties settled on a fiscal plan that funded public education initiatives and tax credits, including the Working Pennsylvanians Tax Credit aimed at providing relief to low- and middle-income workers.

The most noteworthy tax provision decoupled Pennsylvania’s corporate tax law from Section 174 of the Internal Revenue Code for tax years beginning after Dec. 31, 2021. Enacted as part of House Bill 416, now Act 45 of 2025, the change alters the treatment of certain research and experimental expenditures and marks a significant shift in Pennsylvania’s corporate tax framework. According to the Independent Fiscal Office, absent this decoupling the commonwealth would have faced a $610 million reduction in corporate net income tax revenues in fiscal year 2025-2026, along with an additional $50 million in refunds.

The extended budget impasse delayed passage of the commonwealth’s roughly $50 billion spending plan until November 2025. Now, lawmakers are getting ready to tackle the next budget negotiation as the Senate and House pour over Shapiro’s recently proposed budget. Attention will surely turn to ongoing fiscal pressures, economic competitiveness, and policy priorities in an election year, as Shapiro and the General Assembly navigate both their responsibilities and the political dynamics of statewide elections.

Shapiro delivered his 2026–2027 budget address on Feb. 3, launching the annual appropriations process. House and Senate appropriations committees have been holding hearings that offer lawmakers and the public a detailed look at the administration’s proposed spending plan and policy priorities for the coming fiscal year.

As Pennsylvania moves into the 2026 session, we should not forget the groundwork laid in 2025 that set a promising footing for future licensure innovation and workforce policy discussions. For the PICPA, Act 27 is more than a legislative victory, it is an investment in Pennsylvania’s economic future and a more flexible and sustainable pathway for the next generation of accountants. 

Peter N. Calcara is PICPA’s vice president of government relations. He can be reached at pcalcara@picpa.org.