The National Association of State Boards of Accountancy (NASBA) board of directors voted to adopt an amendment to Uniform Accountancy Act (UAA) Model Rule 5-7 that increases the CPA exam window from 18 months to 30 months and that begins after a candidate passes the first section of the exam, Accounting Today reported. That means that CPA candidates would have up to two and a half years to complete the CPA exam after passing the first section of the test.

CPA candidates had eagerly awaited this change, which NASBA implemented in response to CPA candidates being granted more flexibility in taking the exam during the COVID-19 pandemic, as well as to shortages of young accountants across the profession, according to Accounting Today.

Individual state boards must still agree to the change, and the New State Board for Public Accountancy voted to do so at its quarterly meeting on April 26. Specifically, the board voted to provide for a 30-month testing window, beginning with the first score release date, and ending with the last sit date, with the change to become effective on Jan. 1, 2024. Because the current 18-month window is included in New York state's Regulations of the Commissioner of Education, the change will have to be approved by the New York State Board of Regents before it can go into effect.

“Providing an additional year of conditional credit to candidates for Exam sections passed provides more flexibility to those seeking licensure as a CPA. The additional time also provides greater latitude to firms and candidates as they negotiate the demands of today’s complex career environment,” NASBA President and CEO Ken L. Bishop said in a statement.

"Extending the 18-month credit rule for taking all parts of the CPA exam is a key pillar of the AICPA's pipeline acceleration plan," Mike Decker, vice president of CPA examination and pipeline at the AICPA, said in a statement, The Journal of Accountancy reported. "This proposed change to the model rules better accommodates the conflicting demands many prospective CPA candidates face as they strive to make a living, pay off student loans, juggle family obligations and take steps to advance their careers. While there is work to be done to make these amendments a reality in all jurisdictions, this is a positive step for future CPAs and the profession."

Each of the 55 U.S. boards of accountancy can consider the new amendment to the rule and start a process to change the rules at the state level. Current CPA exam candidates will remain under the existing rules until, if and when, the board to which they applied makes changes.

Under the terms of the revised rule, a candidate can be provided with a rolling 30-month period to pass the remaining three sections of the exam once he or she has successfully passed one section.

An exposure draft released on Feb. 15 received 850 responses from stakeholders that included state boards, state CPA societies, CPA firms, licensed CPAs, educators and students. That draft had proposed a six-month extension of the credit period to 24 months, but the NASBA board ultimately decided to approve a 12-month extension, to 30 months. 

“On behalf of the NASBA Board of Directors, we would like to thank the Uniform Accountancy Act Committee and the many stakeholders who provided valuable input to the rule making process,” Richard N. Reisig, CPA, the 2023-24 NASBA chair, said in the NASBA statement. “We believe this amendment made to the UAA Model Rules will support the best interests of the candidates in their journey to entering the profession.”

During the April 21 meeting when the amendment was approved, NASBA board members discussed developing another pathway to allow candidates to achieve 150 hours of college credit through an academically qualified experience that could allow up to 30 credit hours, but no decisions were made, according to Accounting Today.

Some state CPA societies, such as the one in Minnesota, are considering ways to loosen the traditional 150-credit hour requirement for qualifying for a CPA license. Any differences among states could threaten mobility for CPAs who work across state lines, Accounting Today pointed out.

Note: This article, originally published on April 25, has been updated to reflect the actions of the New State Board for Public Accountancy on April 26,