Licensing Requirements

Requirements for an Active Permit to Practice

Nebraska’s Two-Step Licensing Process

Nebraska is a two-tier state, which means becoming an active CPA involves two steps:

  1. CPA Certificate: Issued after you pass the CPA Exam and meet the certificate requirements.
  2. Active Permit to Practice: Issued after you meet the education and experience requirements.

A CPA Certificate alone does not allow you to practice public accountancy or represent yourself as an active CPA in Nebraska. You must also obtain an Active Permit to Practice.

Education and Experience Requirements

To qualify for an Initial Permit to Practice, you must meet one of the following pathways:

Pathway 1: Master's Degree and One Year of Experience

  • Earn a Master's degree from an accredited college or university.
  • Complete at least 2,000 hours of qualifying experience over a period of no less than one year and no more than three years.

Pathway 2: Bachelor’s Degree + 30 Additional Credit Hours, and One Year of Experience

  • Earn a bachelor’s degree from an accredited college or university.
  • Complete 30 additional semester hours of college education.
  • Complete at least 2,000 hours of qualifying experience over a period of no less than one year and no more than three years.

Pathway 3: Bachelor’s Degree and Two Years of Experience

  • Earn a bachelor’s degree from an accredited college or university.
  • Complete at least 4,000 hours of qualifying experience over a period of no less than two years and no more than six years.

Required Coursework

No matter which pathway you choose, you must complete:

  • At least 24 semester hours of accounting courses beyond principles of accounting;
  • At least 24 semester hours of general business courses; and
  • Coursework that includes Business Ethics.

Your accounting courses must cover all six of the following areas:

  1. Financial accounting
  2. Cost or managerial accounting
  3. Tax
  4. Auditing
  5. Accounting information systems
  6. Governmental and not-for-profit accounting

You do not necessarily need to take a separate course for each area. However, your coursework must show that all six subjects were covered.

Renewing Your Active Permit

After your Active Permit to Practice is issued, it must be renewed every two years by June 30 of your renewal year.

You must complete 80 hours of acceptable Continuing Professional Education, including at least 4 hours of ethics, during the two calendar years before you renew.

  • Complete your required CPE by December 31 of the year before renewal.
  • Report your CPE by January 31 of your renewal year.
  • If you were born in an even-numbered year, you will report CPE and renew in odd-numbered years.
  • If you were born in an odd-numbered year, you will report CPE and renew in even-numbered years.

Review the Continuing Professional Education Guidelines

 

Requirements for an Active Permit to Practice 

Chapter 9.004 Educational Requirements:

004.04A Upon application for a permit to practice, a certificate holder shall have completed, at a minimum:

(1) A baccalaureate degree from an accredited college or university (as defined and specified in Title 288 Chapter 9-001 and 9-002).

(2) 24 semester hours or 36 quarter hours in accounting beyond principles of accounting. The subjects to be covered shall include all of the subjects listed under 004.02A (1-6).

(3) 24 semester hours or 36 quarter hours in general business. The subjects to be covered shall include some or all of the subjects listed under 004.02B (1-10).

(4) Content covering the subject of Business Ethics.

004.04B If the time elapsed exceeds six years since the applicant has completed the examination prior to applying for a certificate or permit to practice, the applicant shall file with the Board properly completed affidavits of successful completion of 120 hours of approved courses of continuing education, including 4 hours of ethics courses, within the three years preceding application for a certificate or permit to practice.

004.05 Review of Transcripts; Appropriate level of coursework; transfer hours. For purposes of meeting the educational requirements and for issuance of a certificate or permit to practice, an applicant’s official transcript or transcripts shall be reviewed by the Board or its designee to determine if the applicant‘s educational program complies with the requirements of the law and these rules. In reviewing the transcript or transcripts, hours in courses which have contained the required subjects listed in 9-004.02A and B which have been earned at a non-four-year institution and are transferred to a four-year institution shall be considered as acceptable in meeting the educational requirements.

004.05A A maximum of 12 semester or 18 quarter hours can be earned at a two-year institution after a baccalaureate degree has been granted. Any semester or quarter hours included on the baccalaureate degree transcript are not subject to the 12 semester or 18 quarter hour maximum rule.

004.06 Reciprocal Certificates. An applicant for a reciprocal certificate shall be deemed to have met the requirements of Nebraska Revised Statutes, Section 1- 106, et. seq. if he or she meets the following conditions:

004.06A Holds a current and unrevoked certificate then in full force and effect in any state; and

004.06B Has a postsecondary education which is substantially equivalent to the requirements contained in Nebraska Revised Statutes, Section 1-106, et. seq. The Board or its designee shall determine, based upon information provided by the applicant for a reciprocal certificate, if the applicant has education which is substantially equivalent to the requirements contained in Nebraska Revised Statutes.

004.07 Application procedures. Any person making initial application to take the Uniform CPA Examination and for issuance of a certificate or permit to practice shall be required to submit an official transcript or transcripts showing that the applicant has satisfied the educational requirements as prescribed in these rules. The Board or its designee shall determine whether the applicant is eligible to sit for the Uniform CPA Examination and eligible for issuance of a certificate or permit to practice. If the Board or its designee cannot readily determine that an applicant has satisfied the educational requirements as prescribed in these rules, notification shall be made to the applicant. The burden of showing that the applicant’s educational records contain compliance with the educational requirements contained in these rules shall rest solely with the applicant.

Statutory Authority: Section 1-113 R.R.S. 1943