Policy takeaway: Nebraska’s newly passed LB718 modernizes CPA licensure by expanding pathways into the profession while preserving rigorous education, examination, and experience standards. The law strengthens Nebraska’s accounting workforce pipeline and aligns the state with updated national mobility rules that allow CPAs to serve clients across state lines.
Nebraska has taken an important step to strengthen its accounting workforce and modernize professional licensure.
The passage of LB718 places Nebraska among the states leading a national effort to modernize Certified Public Accountant (CPA) licensure and strengthen the accounting workforce pipeline.
This legislation updates the Nebraska Public Accountancy Act in a thoughtful and balanced way—expanding access to the CPA profession while preserving the rigorous standards that protect the public and support economic growth.
For those focused on workforce competitiveness and sound public policy, LB718 represents the type of reform Nebraska needs.
Restoring Balance in CPA Licensure
For decades, the path to becoming a CPA was straightforward: earn a bachelor’s degree, gain meaningful professional experience, and pass the Uniform CPA Examination.
In the late 1980s and early 1990s, states across the country adopted a 150-hour education requirement—often requiring a master’s degree or the equivalent of 30 additional credit hours beyond a bachelor’s degree. The goal was to strengthen professional standards and deepen technical expertise.
Over time, however, the requirement produced unintended consequences. The additional coursework increased tuition costs, delayed entry into the workforce, and added to student debt. For many prospective CPAs—particularly first-generation students and those from rural communities—the added time and expense became a barrier to entering the profession.
At the same time, the profession itself has changed. Accounting program enrollment has declined nationwide, and employers—especially in more rural states like Nebraska—face growing challenges recruiting new talent.
LB718 restores flexibility to the CPA licensure model while maintaining the rigorous standards the public expects.
Nebraska’s Three Pathways to CPA Licensure
As workforce challenges have emerged across the country, national organizations recently updated the model laws governing CPA licensure. In 2025, the National Association of State Boards of Accountancy (NASBA) and the American Institute of CPAs (AICPA) revised the Uniform Accountancy Act to include a third pathway to licensure—similar to the legislation Nebraska recently passed.
Under LB718, Nebraska will now offer three pathways to becoming a CPA:
Pathway 1:
- Pass the Uniform CPA Examination
Pathway 2
- Bachelor’s degree plus 30 credit hours
- Pass the Uniform CPA Examination
Pathway 3 (New)
- Two years of experience
- Pass the Uniform CPA Examination
Regardless of pathway, every CPA must complete the required accounting coursework, pass the same rigorous national exam, and demonstrate professional competence through supervised experience.
The new pathway preserves the profession’s high standards while recognizing that both rigorous academic preparation and meaningful professional experience play important roles in preparing future CPAs.
Updating CPA Mobility
LB718 also aligns Nebraska with updated national standards governing CPA mobility.
For approximately two decades, mobility rules have allowed licensed CPAs nationwide to serve clients across state lines without obtaining a separate license in every jurisdiction. Nebraska adopted CPA mobility legislation in 2009, allowing qualified CPAs from other states to practice public accountancy in Nebraska without the need to obtain licensure by reciprocity or having to register and pay a fee to the Nebraska Board of Public Accountancy.
Historically, mobility depended on whether a CPA’s home state licensing requirements were comparable, or considered “substantially equivalent,” to those of the state where services were performed.
Under the updated national model, mobility becomes individual-based rather than state-based. A CPA’s ability to practice across state lines will now depend on the individual’s education, examination, and experience qualifications rather than solely on the statutory requirements of their home state.
This approach ensures mobility continues to function smoothly even as states adopt additional licensure pathways.
Keeping Nebraska Competitive
Across the country, approximately 30 states are considering or adopting similar reforms to CPA licensure. Because each state must enact its own legislation, implementation will occur at different times nationwide.
By passing LB718, Nebraska ensures its licensure framework remains aligned with national standards and that Nebraska CPAs can continue to practice seamlessly across jurisdictions. Maintaining that compatibility is essential for firms serving multistate clients, professionals who relocate during their careers, and businesses that rely on accounting expertise.
Economic Importance
Accounting plays a critical role in the economy. CPAs support small and large businesses, financial institutions, manufacturers, agricultural operations, nonprofits, and local governments.
When the pipeline of new CPAs shrinks, the impact extends far beyond the profession itself.
LB718 removes barriers while maintaining professional rigor. By offering a pathway that combines a bachelor’s degree with additional professional experience, Nebraska enables more graduates to enter the workforce sooner while preserving the standards that protect the public.
Implementation
LB718 will take effect three months after the final day of the 2026 legislative session. The Nebraska Society of CPAs will continue working with the Nebraska Board of Public Accountancy as rules are finalized and implementation guidance is issued.
Expanding Opportunity
LB718 represents a thoughtful modernization of Nebraska’s Public Accountancy Act.
Every CPA will continue to meet rigorous education requirements, pass the same national examination, and demonstrate professional competence through supervised experience. What changes is the flexibility in how aspiring professionals reach that standard.
Ultimately, LB718 strengthens Nebraska’s accounting workforce pipeline, preserves mobility and professional standards, and most importantly ensures businesses, communities, and taxpayers continue to have access to trusted financial expertise.
