Texas uses a rolling three-year CPE cycle tied to each CPA's birth month. CPAs must complete 120 hours over any rolling three-year period, with a minimum of 20 hours annually. At least half must be in technical subjects. A 4-hour Board-approved ethics course is required every two years, and all CPE providers must register with the Texas State Board of Public Accountancy.
General requirement
CPAs must complete 120 hours of CPE over a rolling three-year period, with a minimum of 20 hours each year. The reporting period ends on the last day of the CPA's birth month, and licenses renew annually on the same date.
CPE hours are prorated for the first three-year cycles following initial licensure.
Ethics requirement
Texas requires a 4-hour Board-approved ethics course every two years. The course provider must be registered with the Texas State Board of Public Accountancy.
New licensees must complete an ethics course covering the Rules of Professional Conduct within two years of initial licensure.
Nonresident CPAs who do not live in Texas, have no Texas clients and are current with their home state's ethics requirement are not required to complete Texas-specific ethics CPE.
Technical vs. nontechnical subjects
At least 60 hours (50%) of the 120-hour requirement must be in technical subjects. Nontechnical subjects are limited to 60 hours (50%).
Technical subjects include accounting, attest, taxation, management advisory services, economics, finance, information technology, regulatory ethics and other technical areas that benefit the licensee or employer.
Nontechnical subjects include communications, computer software applications, behavioral ethics, behavioral science, business management and advanced foreign language courses.
Credit limitations
- Nontechnical subjects: Maximum of 60 hours (50%) per three-year period.
- Nano learning: Maximum of 60 hours (50%). A passing grade of 100% is required. Credit awarded in 0.2-hour increments only.
- Instruction: Maximum of 20 hours per year. Introductory-level college courses do not qualify.
- Published materials: Maximum of 10 hours per year.
- Other certifications (CFP, CIA, CFE, etc.): Maximum of 60 hours (50%), with no more than 20 hours per certification.
- Non-registered sponsors: Maximum of 50% of total hours in any three-year period.
Credit calculation
- Standard measurement: One CPE credit equals 50 minutes of instruction.
- Instruction: Credit equals three times presentation time. Repeat presentations do not qualify unless the material has been substantially revised.
- Live and blended programs: Minimum of one full hour initially; then credit may be earned in 0.2 or 0.5-hour increments.
- Self-study: Minimum of 0.5 hours initially; after the first full hour, credit may be earned in 0.2 or 0.5-hour increments.
- University credit: 15 CPE hours per semester hour and 10 CPE hours per quarter hour.
New licensees
CPAs licensed for fewer than 12 months have no CPE requirement during their first year. The first license period begins on the certification date and ends on the last day of the licensee's birth month. CPE hours are prorated for the first three reporting cycles.
Nonresident CPAs
Nonresident licensees may satisfy Texas CPE requirements by meeting the requirements of their principal place of business. If that jurisdiction does not require CPE, Texas requirements apply.
For ethics, nonresident CPAs with no Texas clients who are current with their home state's ethics requirement are exempt from the Texas ethics requirement.
Exemptions
The board may grant CPE exemptions on a case-by-case basis. A written affidavit is required. Available exemption categories include:
- Exemption A: Unemployed or not employed
- Exemption B: Employed but not engaged in accounting work
- Exemption C: Not residing in Texas and has no Texas clients
- Exemption D: Medical exemption, certified by a physician
- Exemption E: Active military duty
- Exemption F: Extenuating circumstances