HF 778: A bill for an act relating to qualifications for a certificate as a certified public accountant and including effective date provisions. - Iowa

Enrolled → Enrolled with Governor's Action · 4 edits · May 1, 2025

MODERATE

This bill updates Iowa's Certified Public Accountant (CPA) certification requirements, primarily increasing education and experience thresholds for new applicants while maintaining provisions for foreign licensees and out-of-state practitioners. The changes modernize qualification standards to align with current professional expectations and clarify effective dates for existing licensees.

Scope change

The bill applies to all CPA certification applicants in Iowa, with specific provisions for out-of-state firms and foreign licensees seeking reciprocity.

REQUIREMENT

Education requirements now offer two pathways: 150 semester hours with one year experience, or 120 semester hours with two years experience, both requiring a baccalaureate degree with accounting concentration.

Experience requirements clarified to include accounting, attest, compilation, management advisory, financial advisory, tax, or consulting services verified by the board.

Out-of-state CPA firms must hold valid licenses in their home state that are substantially equivalent to Iowa licenses to practice without full licensure in Iowa.

TIMELINE

Effective date set to July 1, 2026, providing a transition period for existing licensees and applicants to meet new standards.

Introduced → Signed Enrolled Bill (PDF) · 4 edits · May 1, 2025

MODERATE

This bill updates Iowa's CPA certification requirements by establishing two pathways for applicants: one requiring 150 semester hours of college education plus one year of experience, and another requiring 120 semester hours plus two years of experience. Both pathways require a bachelor's degree with an accounting concentration or an equivalent area of study. The bill also clarifies experience requirements for reciprocity and foreign designations.

Scope change

The bill modifies the eligibility criteria for CPA certification in Iowa, creating a dual pathway system that allows applicants with either 150 semester hours (1 year experience) or 120 semester hours (2 years experience) to qualify.

ELIGIBILITY

Established two alternative qualification pathways for CPA certification: Path 1 requires 150 semester hours of college education and 1 year of experience; Path 2 requires 120 semester hours and 2 years of experience.

REQUIREMENT

Clarified that experience must involve accounting, attest, compilation, management advisory, financial advisory, tax, or consulting services verified by the board.

Updated experience requirements for reciprocity and foreign designations to align with the new dual pathway system.

TIMELINE

Set the effective date of the new requirements to July 1, 2026.

Signed Enrolled Bill (PDF) → Enrolled · 6 edits · May 1, 2025

MODERATE

This bill updates Iowa's Certified Public Accountant (CPA) certification requirements by introducing two pathways for initial licensure: one requiring 150 semester hours and one year of experience, and another requiring 120 semester hours and two years of experience. The changes also clarify experience definitions, update effective dates, and modify provisions for out-of-state practitioners seeking reciprocity.

Scope change

The bill expands eligibility options for CPA certification by creating an alternative pathway for applicants with slightly fewer education hours but more professional experience, while also clarifying requirements for out-of-state firms practicing in Iowa.

ELIGIBILITY

Added a second pathway for CPA certification requiring 120 semester hours and two years of experience, alongside the existing 150 semester hour and one year experience requirement.

Modified provisions for out-of-state CPA firms, requiring valid licenses in their home state that are substantially equivalent to Iowa licensing standards.

REQUIREMENT

Clarified that required degrees must be baccalaureate degrees from recognized institutions with accounting concentrations or substantially equivalent programs.

Expanded experience requirements to include various accounting-related services including attest, compilation, management advisory, financial advisory, tax, and consulting work across government, industry, academia, and public sectors.

TIMELINE

Updated effective date from July 1, 2002 to July 1, 2026 for new certification requirements.

TECHNICAL

Removed Governor's signature page and ceremonial text from the enrolled version, which is standard for final legislative documents.

A bill for an act relating to qualifications for a certificate as a certified public accountant and including effective date provisions.

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