Overview: This legislative and regulatory agenda was developed with input from the NYCPA Legislative Task Force and will serve as the action plan for staff and volunteer activities this session.
LEGISLATIVE AFFAIRS
False Claims Act
BACKGROUND: The federal False Claims Act (FCA) allows the government to recover funds obtained through fraud but excludes tax-related fraud through a “tax bar.” New York has removed this bar, making its FCA broader than federal law. Under current New York law, liability applies only when false claims are made knowingly—meaning intentional fraud, deliberate ignorance, or reckless disregard—not simple mistakes.
Tax-related FCA claims in New York are already limited to cases where the taxpayer has $1M+ in income or sales in a contested year and owes at least $350K. The Attorney General must consult the Tax Commissioner before intervening.
The recent bills S.556 and S.944, proposed by Senator Brad Hoylman-Sigel (D-Manhattan), would remove the “knowingly” requirement for certain unpaid tax obligations, allowing claims even without proof of intent—plus retroactive application. NYSSCPA opposed the bill, warning it could:
- Drag well-intentioned taxpayers into costly litigation.
- Overlap with existing tax penalties for non-willful errors.
- Chill the CPA profession, especially in gray areas of tax law, potentially driving talent out of New York.
UPDATE: Thanks in part to NYCPA’s strategic advocacy, S.556 and other likeminded bills have either stalled in the legislature or have been vetoed by the Governor. NYCPA supports using the FCA to combat fraud but opposes expansions that penalize taxpayers for non-willful mistakes or create undue burdens for CPAs.
Alternative Licensing Pathway
BACKGROUND: Today, people pursuing a CPA license are required to complete 30 additional hours of academic credits, such as obtaining a master’s degree, after earning their bachelor’s degree, work under the supervision of a CPA for one-year and then pass the CPA exams to be licensed.
ISSUE: The bill reforms the education requirements for any person who wants to become a CPA. This legislation addresses both the practical needs of aspiring CPAs and the evolving demands of the accounting profession. It modernizes and expands the process for obtaining the CPA license. It creates a third pathway where students can obtain 120-credit hours or what is equivalent to a bachelor’s degree plus two years of experience. This was the standard pathway before the profession moved to 150-credit hours and one year of experience in 2009. Now, students will have a choice of becoming a CPA with their bachelor’s degree or after they earn their master’s degree. Additionally, the bill ensures continued interstate practice mobility for CPAs by making it clear that as long as an out-of-state CPA is in good standing and has passed the Uniform CPA Examination, they may practice in New York without needing a reciprocal license, though they will still be subject to New York’s laws and regulations.
UPDATE: Assembly Majority Leader Crystal D. Peoples-Stokes (D-Buffalo) introduced A.7613 in the Assembly while Senator Toby Ann Stavisky (D-Queens) introduced S.6891B in the Senate in the 2025 Legislative Session. Both bills passed in the Legislature in early June. The legislation is currently awaiting to be delivered to the Governor for her signature or veto. NYCPA’s Government Relations Team believes the Governor will sign the legislation into law.
Learn even more about the legislation via the Additional Pathways FAQs.
Power of Attorney E-Signature Expansion
BACKGROUND: Although New York state passed its historic e-signature bill during the height of COVID, the NYCPA is looking for an expansion that would allow documents to be signed electronically by someone holding Power of Attorney.
UPDATE: The expansion bill was first introduced by Senator John Liu (D-Queens) in the Senate and Assemblymember Bill Magnarelli (D-Syracuse) in 2022. The legislation A.249/S.52 was reintroduced in the 2023, 2024, and 2025 legislative sessions. Their NYCPA-backed bill authorizes the use of an electronic signature by a person granted power of attorney with respect to tax documents submitted. The bill passed unanimously in the Assembly in June 2025 and with one negative vote in the Senate in February of 2025. The legislation is currently awaiting to be delivered to the Governor for her signature or veto. NYCPA’s Government Relations Team believes the Governor will sign the legislation into law.
Financial Literacy in Schools
BACKGROUND: In hopes of preparing students for adult financial responsibilities, the NYCPA is looking to put financial literacy back in the New York state public education system S.94 (Sen. Leroy Comrie-D-Queens) / A.5052 (AM Jonathan Jacobson-D-Poughkeepsie) would amend the education law, in relation to requiring senior high schools to provide a required course in financial literacy as a condition of graduation.
UPDATE: The State Education Department’s Board of Regents is currently exploring opportunities to add financial literacy into the state’s primary education curriculum. Per their last update, financial literacy was proposed during a presentation to the Board of Regents for the 2026-27 school year, according to NY Inspires: A portrait of a graduate.
To ensure the financial literacy stays front of mind in Albany, the bill was reintroduced in the Legislature in 2025. Unfortunately, it did not pass, but NYCPA will continue to serve as the leading advocate for this legislation/regulation alongside State Comptroller Thomas P. DiNapoli.
Pass-Through Entity Tax (PTET)
BACKGROUND: The Pass-Through Entity Tax (PTET) has been one of our biggest legislative wins over the past five years. It has saved New York taxpayers large amounts of federal tax, at no cost to the state.
As good as it has been, the Society believes that it still needs adjustment to resolve some of the issues that have arisen on a consistent basis. Most of the problems revolve around the fixed election date of March 15 of the taxable year in which the election would be effective. For example, if a partnership is formed on March 1, 2023, it can elect to pay PTET for the 2023 tax year. If it is formed on March 31, 2023, the first year in which it could elect PTET is 2024. Another example would be if there is a windfall gain in an entity after the March 15 election date, an entity cannot then elect in.
Since the imposition of the tax is fiscally neutral to the state, there is no reason to have the fixed date within the first 2½ months of a tax year. We are urging the legislature to adopt a post year-end election date, while imposing an estimated tax requirement with penalties for underpayment of estimates for any year, regardless of the election date.
UPDATE: The Governor added PTET to her Executive Budget for FY2026, but the Legislature’s two-house budget took it out. During the negotiation process, PTET was on and off the table. At the conclusion of negotiations, PTET was not added to the recently passed budget bills. Although we are disappointed by this news, we will continue to advocate for this vital legislation. Conversation surrounding adding PTET to the Governor’s FY2027 budget have already begun.
REGULATORY AFFAIRS
CPE Reciprocity
ISSUE: CPE reciprocity would allow CPAs holding multiple state licenses to meet only their home state’s CPE requirements, rather than fulfilling separate requirements for each state. This Uniform Accountancy Act (UAA) Model Rule promotes consistency, reduces unnecessary compliance burdens, and still protects the public interest.
Under UAA Model Rules 6-4 and 6-5(c), CPAs must complete 120 hours of CPE every three years (including 4 hours in ethics and at least 20 hours annually). A nonresident licensee would satisfy all states’ CPE requirements by meeting their principal place of business state’s standards—unless that state has no CPE requirement, in which case the licensee must follow the other state’s rules.
The AICPA and NASBA support adoption nationwide, but not all states have implemented the rule. Without it, CPAs with multiple licenses face duplicative and complex requirements.
In New York, the State Education Department (NYSED) has paused action on CPE reciprocity due to concerns about inconsistent regulations among states. The NYCPA and it’s Government Relations Team continues to monitor developments.
CPA Evolution Model Curriculum
BACKGROUND: Addressing the concerns of the New York State Board for Public Accountancy (NYSBPA) and its Education Committee’s programs to strategize licensure curriculum revisions. Concerns surround the following:
- Distinguishing Between Upper- and Lower-Division Courses for Licensure
- Community College’s Impact on the Pipeline
- Evolution and Survival of the Accounting Unit
UPDATE: The Government Relations Team and members of the Future of Accounting Education Committee have been in continued conversations with the NYSBPA to address the above concerns.
WATCH LIST
The Martin Act
BACKGROUND: The NYCPA opposes New York state’s possible expansion of the Martin Act, which allows the state attorney general great leverage to fight financial fraud. The Senate and Assembly have proposed bills that would require the attorney general to investigate financial entities if a public pension fund trustee alleges that a practice is fraudulent under the Martin Act and allegedly caused damage to the fund that the trustee serves.
UPDATE: The NYCPA opposes such legislation—existing law already grants greater authority to the attorney general than in any other state, and it would adversely affect the state’s business climate.
Occupational Licensing
An antiregulatory movement sweeping the country is calling into question the need for certification/licensing across occupations, directly threatening the value of the CPA license. Already, 39 states are considering some form of occupational licensing reform, adding to bills already passed.
BACKGROUND: Research shows that from the 1960s to today, the number of jobs requiring a license exploded from 1 in 20 to 1 in 4. Such rules originally applied only to learned professions such as physicians, attorneys, architects and CPAs. (In fact, the first law regulating the accounting profession was introduced here in New York in 1896.) Today, however, these requirements have come to encompass such diverse jobs as hair braiders, auctioneers and home entertainment system installers. Currently, occupations and the learned professions are viewed the same.
The AICPA and NASBA have formed a coalition with other licensed professionals called the Alliance for Responsible Professional Licensing, which aims to educate policymakers and the public on the importance of high standards, rigorous education and extensive experience within highly complex, technical professions that are relied upon to protect public safety and enhance the public trust.
UPDATE: The NYCPA is monitoring the issue in New York.
Tax on Professional Services
A growing number of state legislatures are currently considering expanding sales tax to cover services, including professional services, such as accounting. While there is currently no proposal/legislation in New York, we continue to monitor this issue and stand ready to voice our opposition. If this issue does arise in New York state, the NYCPA will consider forming a coalition with the 50+ other professions in the state to push back against this bad public policy proposal.
ACCEPTED INTO LAW
Non-CPA Ownership Legislation – A.4189 / S.2473
ISSUE: New York state law prohibits non-CPA ownership of firms. New York and Hawaii are the only two states with this prohibition. As CPA client work becomes more complex, non-CPA professionals are increasingly vital to performing high-quality client work. IT professionals, policy experts, data analysts and others are reaching a professional ceiling due to the fact that firms are unable to offer any long-term incentive and growth opportunity. A non-CPA firm ownership option often results in the loss of these valued employees to neighboring states, where the opportunities they are looking for are available. Expanding opportunities for ownership in New York state will level the playing field, provide increased job opportunities and strengthen the economy.
A.182 (Magnarelli) / S.758 (Liu) passed in the 2023 legislative session. The Governor signed the bill with a stipulation that would give the State Education Department roughly six-eight months for preparation. During the 2024 legislative session, the Legislature revised the language of the bill to meet the Governor’s request, and it was officially signed into law in 2024.