CPE Waivers, Exemptions and Inactive Status for CPAs 2026

Not every CPA has to complete the full requirement every cycle. Boards commonly relax CPE for new licensees at their first renewal, for CPAs who move to inactive or retired status, and for hardship cases such as illness or military service. The conditions differ sharply. In the state guides we have published, Ohio lets retired holders qualify if they are 55 or older and file an affidavit, Utah requires no CPE at the first renewal after initial licensure, and New Jersey exempts new licensees from the other CPE for their initial renewal. This guide sets out the pattern and the cautions. Each figure comes from the relevant state guide, which is based on the board's own rule or website; confirm it with your board before you rely on it.

At a glance

Three routes to a lighter requirement

A board can reduce your CPE in three ways. A new-licensee rule prorates or waives the first cycle because you have only just been licensed. An inactive or retired status removes the obligation because you are not offering services to the public. A hardship waiver reduces the obligation for one period because of illness, military service or similar circumstances. Each route has its own paperwork and its own consequences for later renewal.

New licensees and first renewals

Utah requires no CPE at the first renewal after initial licensure (Utah guide). Delaware requires none if the permit was issued less than a year before renewal (Delaware guide). Illinois exempts the first renewal (Illinois guide), and New Jersey exempts new licensees from the other CPE for their initial renewal (New Jersey guide). Hawaii prorates new permit holders at 10 hours per three-month period (Hawaii guide), and Arkansas prorates from the initial licensure date and defers the ethics requirement (Arkansas guide). These rules interact with carryover: New Hampshire gives no carryover to new licensees, as our guide to CPE carryover rules by state explains.

Retired and inactive status in Ohio

Ohio lets retired holders qualify for relief if they are 55 or older and file an affidavit. The executive director may also reduce the requirement for one period for health, military service or just cause (Ohio guide). These are different mechanisms with different tests, so ask the Board which one fits you.

Inactive status in the US Virgin Islands

The US Virgin Islands Board may grant an exception to permit holders who do not offer public accounting or auditing services, and they must show the word inactive beside the CPA title. The department's page sets a stricter rule for reinstating a lapsed permit: 120 hours including 30 in accounting and auditing and 8 in ethics (US Virgin Islands guide).

Hardship waivers in Illinois and New Jersey

Illinois allows a hardship waiver, which must be filed before renewal (Illinois). New Jersey's guide advises going inactive rather than renewing active with a deficiency (New Jersey). Both reflect the same principle: tell the board before the deadline, not after.

UK example: ICAEW

Outside the US the same ideas appear in different words. ICAEW exempts retired or non-working members and applies pro-rata rules for part-year work (see our ICAEW CPD guide). If you hold both a UK and a US credential, check each body's rules separately.

The catch: returning to active status

Relief is rarely free of strings. Reinstating a lapsed or inactive licence often requires a block of hours made up in a short window, as in the US Virgin Islands. Before you go inactive, ask what it will cost to come back. Our guide to CPE deficiency and late reporting covers the cost of getting this wrong, and our CPA CPE requirements guide compares requirements across states.

Frequently asked questions

Do new CPAs need CPE at the first renewal?

It depends on the state. Utah, Illinois and New Jersey exempt or reduce the first renewal, Delaware waives it if the permit is under a year old, and Hawaii and Arkansas prorate.

Can retired CPAs stop doing CPE?

In Ohio retired holders must be 55 or older and file an affidavit. The US Virgin Islands allows inactive status for holders who do not offer public accounting or auditing.

Is a hardship waiver available?

Ohio can reduce the requirement for one period, and Illinois offers a hardship waiver that must be filed before renewal.

What does inactive status cost me later?

Reinstatement can be demanding. The US Virgin Islands requires 120 hours including 30 in accounting and auditing and 8 in ethics to reinstate a lapsed permit.

Do UK bodies offer similar exemptions?

ICAEW exempts retired or non-working members and applies pro-rata rules for part-year work.

Finding courses that count

Learnsignal publishes accounting, tax, audit, ethics and finance courses in its CPD and CPE library. Before you pay for any course, check the awarding body's own rules on what it accepts, and keep the certificate and the course details. Confirm the current rule with your state board before you change your status.

Source: Learnsignal state CPE guides for Ohio, Illinois, New Jersey, Utah, Delaware, Hawaii, Arkansas and the US Virgin Islands, and the ICAEW CPD guide, each based on the body's own rules, checked October 2026.