Arizona HVAC license requirements and insurance

To work for yourself as an HVAC contractor in Arizona, you need the R-39 Air Conditioning and Refrigeration, Including Solar (residential) license. Arizona has 3 HVAC license types, and which one you need depends on the work you take on. The state sets no minimum liability insurance, and workers' comp is required as soon as you regularly employ one worker.

Checked by the Trades by State editor on 2026-09-06 Based on 25 official pages, listed at the bottom Something wrong? Tell us

License you need: R-39 Air Conditioning and Refrigeration, Including Solar (residential) Renew Every two years. You can choose to renew each year instead at half the two-year fee
Insurance you must carry: No state minimum customers usually ask for $1,000,000
Workers' comp: Required as soon as you hire anyone
Credit score: None. Arizona does not set a minimum credit score or take a 14-hour course
To protect your pay, send notice by: Within 20 days of your first day supplying labor or materials to the job (start on March 1 means notice by March 21). Send it late and your lien only covers work done in the 20 days before the notice and after it

Turn this into a checklist

1 What stands out in Arizona for an HVAC contractor What is this?

The things people get wrong or do not expect about Arizona, in a few sentences.

The residential R-39 covers heating, cooling, refrigeration, evaporative coolers and ventilation, with or without solar. The commercial C-39 covers refrigeration, evaporative cooling, and heating systems of the wet, dry, or radiant type. Ventilation and solar are not named in the C-39 rule, so check with ROC before you take on that work commercially.
A yearly tune-up, a refrigerant recharge, or a full swap of an old unit for a new one is not taxed on your invoice, whatever the price. You pay sales tax at the supply house and add no tax line. Only new construction and very large alterations are taxed, and then on 65 percent of the bill.
The state does not ask for liability insurance to issue the license. It asks for a bond and, for residential work, a payment into a Recovery Fund that can pay a homeowner up to $30,000 if you walk away from bad work.
Anyone who opens a refrigerant circuit needs the federal EPA Section 608 card as well as the state license. The card never expires, and since 2018 it covers HFC refrigerants too, not just the old ozone-depleting ones.
A job under $1,000 all-in that needs no permit can be done without a license. A permit or one dollar more and you need the R-39 or C-39.
Send a preliminary notice within 20 days of your first day on site or you lose most of your lien rights, even when the homeowner hired you. And if a builder hired you on a house the owner already lives in, you cannot lien it at all.

Checked by a person against the official page

·8 official pages

2 Who issues HVAC contractor licenses in Arizona? What is this?

Arizona Registrar of Contractors (ROC) issues HVAC licenses in Arizona.

Name	Arizona Registrar of Contractors (ROC)
Website	https://roc.az.gov/
Look up a license	https://azroc.my.site.com/AZRoc/s/contractor-search
The law	Arizona Revised Statutes (A.R.S.) Title 32, Chapter 10
The rulebook	Arizona Administrative Code (A.A.C.) Title 4, Chapter 9

Taken from the linked page, not separately checked

·2 official pages

3 Arizona HVAC contractor license requirements and fees What is this?

Arizona has 4 license types that matter to an HVAC contractor. The R-39 Air Conditioning and Refrigeration, Including Solar (residential) needs four years of hands-on or management experience in the trade, at least two of them within the last ten years. Up to two years of technical training at an accredited college can count toward the four.

R-39 Air Conditioning and Refrigeration, Including Solar (residential)

A business that installs or repairs heating and cooling on houses, townhouses, condos and anything inside residential property lines

What you can work on

Install and repair comfort air conditioning systems, including refrigeration, evaporative cooling, ventilating and heating, with or without solar equipment

Experience required

Four years of hands-on or management experience in the trade, at least two of them within the last ten years. Up to two years of technical training at an accredited college can count toward the four

Training required

None required before applying, apart from the training that counts as experience

Exam

Yes, a trade exam run by PSI plus the Arizona Statutes and Rules Exam (SRE), each taken within two years before you apply

Fees

Application	80
Trade exam (paid to PSI)	66
Law and rules exam	61
First license	$270
Recovery fund fee, first license	$370
Renewal	$270
Recovery fund fee, renewal	$270
Late renewal penalty	50

Renewal

Every two years. You can choose to renew each year instead at half the two-year fee

Training hours each year

Taken from the linked page, not separately checked

·5 official pages

C-39 Air Conditioning and Refrigeration (commercial)

A business that does HVAC or refrigeration work on anything that is not residential, such as shops, offices, restaurants, warehouses and public buildings

What you can work on

Install, alter, and repair refrigeration and evaporative cooling systems, and heating systems of the wet, dry, or radiant type. Ventilation and solar are not named in the C-39 rule

Experience required

Same as R-39. Four years, two within the last ten, up to two years of schooling can count

Exam

Yes, a trade exam run by PSI plus the Arizona Statutes and Rules Exam (SRE)

Fees

Application	$100
First license	$480
Renewal	$480
Recovery fund fee	0

Renewal

Every two years, or each year at half the fee

Checked by a person against the official page

·3 official pages

CR-39 Air Conditioning and Refrigeration (dual, residential and commercial)

A business that wants one license for both houses and commercial buildings

What you can work on

Everything the R-39 and the C-39 allow

Experience required

Same four-year rule

Exam

Yes, same exams

Fees

Application	$100
First license	$380
Renewal	$380
Recovery fund fee	Same as residential, because a dual license covers residential work

Renewal

Every two years, or each year at half the fee

Taken from the linked page, not separately checked

·3 official pages

Handyman exemption (no license)

Anyone doing a job where the whole contract price, labor and materials, is under $1,000 and no building permit is needed

What you can work on	Casual or minor work only. The moment a permit is needed the exemption is gone, whatever the price. Refrigerant work still needs the EPA card

Checked by a person against the official page·azleg.gov

4 How much insurance does an HVAC contractor need in Arizona? What is this?

Arizona sets no minimum liability insurance for this license. Customers and general contractors usually ask for $1,000,000 anyway. Workers' comp is required as soon as you regularly employ one worker.

Minimum liability insurance	None required by the state
Type of policy	None required by the state to hold the license
Who this applies to	Nobody has to carry liability insurance to hold the license. A.R.S. 32-1122 asks for experience, an exam where required, and a bond. It also asks you to confirm you follow Arizona's workers' comp laws, and to give the policy number or proof of self-insurance if you must carry workers' comp. Customers, builders, and cities will still ask to see a liability policy
Who must be named on the certificate	Not applicable
Workers' comp required?	Yes, as soon as you regularly employ one worker
Who can opt out	A sole proprietor with no employees does not need a policy for themselves and can sign a waiver form with the insurer that says they are not an employee. Once you hire anyone, coverage is required for that person

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·4 official pages

5 Does Arizona check your credit for an HVAC contractor license? What is this?

Arizona does not check your credit for this license.

Credit score you need	None. Arizona does not set a minimum credit score
If your score is lower	Not needed. Arizona does not ask for a credit score or a credit report. You post a license bond. Residential and dual licenses also pay into the Residential Contractors' Recovery Fund, or post an extra $200,000 bond or cash deposit instead

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·2 official pages

6 Does an HVAC contractor need a bond in Arizona? What is this?

Arizona requires a bond. A bond is a promise, backed by an insurance company, that customers can be paid if you do not finish the job.

Does the state require a bond?

Yes

Bond, residential R-39

Your license type and the work you expect in a year	Bond you must post
Specialty license, under $375,000	$4,250
Specialty license, $375,000 or more	$7,500
General license, under $750,000	$9,000
General license, $750,000 or more	$15,000

Pick the row that matches your license and the work you expect. R-39 is a specialty license, so the first two rows apply. The amount is fixed

Bond, commercial C-39

Work you expect in a year	Bond you must post
Up to $150,000	$2,500
$150,001 to $500,000	$7,000
$500,001 to $1,000,000	$17,500
$1,000,001 to $5,000,000	$25,000
$5,000,001 to $10,000,000	$37,500
Over $10,000,000	$50,000

Pick the row that matches the work you expect in a year. C-39 is a specialty license, so these rows apply. The amount is fixed; the registrar does not adjust it

Bond, dual CR-39

One bond that adds the residential amount and the commercial amount together

Instead of a bond

Instead of a bond you can put cash with the state treasurer. You get it back two years after the license ends

Recovery fund fee

Residential and dual licensees also pay into the Residential Contractors' Recovery Fund.
The payment is capped at $600 per two-year period.
A homeowner can get up to $30,000 per claim from the fund if a licensed residential contractor does bad work and does not fix it.
Only owner-occupants, their LLCs, living trusts, HOAs and tenants can claim

A bond is a promise, backed by an insurance company, that customers can be paid if you do not finish the job or do it badly. Cities may ask for a separate bond before you pull permits

Checked by a person against the official page

·8 official pages

7 Federal rules that also apply What is this?

Rules from the US government that apply to an HVAC contractor in Arizona on top of the state's own.

EPA refrigerant certification	Anyone who maintains, services, repairs or disposes of equipment that could release refrigerant must hold EPA Section 608 technician certification, on top of the state license. Since 1 January 2018 that includes most HFC refrigerants, not only the old ozone-depleting ones. The card does not expire. Type I covers small appliances, Type II high-pressure, Type III low-pressure, and Universal covers all three
Test fee	Set by the approved testing organization, not by the EPA

EPA refrigerant certification

Anyone who maintains, services, repairs or disposes of equipment that could release refrigerant must hold EPA Section 608 technician certification, on top of the state license.
Since 1 January 2018 that includes most HFC refrigerants, not only the old ozone-depleting ones.
The card does not expire.
Type I covers small appliances, Type II high-pressure, Type III low-pressure, and Universal covers all three

Test fee

Set by the approved testing organization, not by the EPA

Taken from the linked page, not separately checked

·2 official pages

8 Where must an Arizona HVAC contractor show the license number? What is this?

In Arizona: write your number as ROC followed by the digits. It must appear on every written bid and estimate, on all published ads, and on your letterhead and any paper you send customers. It must also appear on broadcast, internet, and billboard ads, and in a visible spot at every job site. An online ad can instead link to a page that shows your name and license number.

The rule	Write your number as ROC followed by the digits. It must appear on every written bid and estimate, on all published ads, and on your letterhead and any paper you send customers. It must also appear on broadcast, internet, and billboard ads, and in a visible spot at every job site. An online ad can instead link to a page that shows your name and license number
If you forget	The registrar can discipline you. A customer cannot use a missing number to cancel a contract or refuse to award one
On your vehicles	The statute does not mention vehicles

Checked by a person against the official page·azleg.gov

9 Does an HVAC contractor charge sales tax on labor in Arizona? What is this?

Whether Arizona taxes your labor, your materials, or neither.

See how this compares in every state: Sales tax on labor for plumbers and HVAC contractors by state

What this tax is	Arizona calls its sales tax transaction privilege tax (TPT). It is a tax on the seller, so the rules say who pays, not just how much
Service, repair, and replacement	No tax on your invoice. A yearly checkup and top-up, recharging a unit with refrigerant, and removing an old HVAC unit to install a new one all count as maintenance, repair, replacement or alteration (MRRA), whatever the contract price. You pay tax when you buy the equipment and parts and charge the customer no tax on labor or materials
Alteration limit, homes	A job that changes an existing home still counts as MRRA if the contract price is 25 percent or less of the home's full cash value on the county assessor's notice. Above that it is taxed as new construction
Alteration limit, businesses	A commercial alteration counts as MRRA if the contract is $750,000 or less, touches 40 percent or less of the floor area, and adds no more than 10 percent to it
New buildings and large alterations	Taxed as prime contracting. You charge tax on the whole job, but the tax is figured on 65 percent of the price, because 35 percent is treated as labor. You buy equipment and materials tax-free with a Form 5000 exemption certificate
Jobs that are part repair, part new work	If a repair job includes construction work worth more than 15 percent of the contract, the whole contract is taxed
Transaction privilege tax license	If all your work is MRRA for property owners, you do not need a TPT license. If you do any new construction you must register and file
If you hold a TPT license	Suppose you hold a TPT license, buy materials tax-free with Form 5000, and then use them on a repair job. You then owe an amount equal to the retail tax on those materials, reported for the job's location
When you are the subcontractor	If a taxable prime contractor hires you for new construction, get a copy of its registered Form 5009L so you can buy equipment tax-free for that job
Tax rate	5.6 percent state, plus county and city rates. The state example uses 7.8 percent for Gilbert in Maricopa County

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·3 official pages

10 Getting paid: lien and notice deadlines for an Arizona HVAC contractor What is this?

If you are not paid in Arizona, a lien on the property is your backstop, but only if your notice goes out on time: within 20 days of your first day supplying labor or materials to the job (start on March 1 means notice by March 21). Send it late and your lien only covers work done in the 20 days before the notice and after it.

Who has to send a notice	Everyone who supplies labor or materials and wants lien rights, including a contractor hired directly by the owner. It goes to the owner, the general contractor and the construction lender if there is one. It is called a preliminary twenty-day notice
Send your notice by	Within 20 days of your first day supplying labor or materials to the job (start on March 1 means notice by March 21). Send it late and your lien only covers work done in the 20 days before the notice and after it
File your lien by	Record the lien within 120 days after the whole project is complete (project finished June 1 means record by September 29). If the owner records a notice of completion, you have only 60 days from that recording
Homes the owner lives in	No lien is allowed on a home the owner lived in before the work started unless you have a written contract directly with that owner-occupant. A subcontractor on an occupied house has no lien. The owner cannot sign this protection away

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·3 official pages

11 How much does it cost to become an HVAC contractor in Arizona? What is this?

The government fees on this page add up to about $720 in Arizona. Add insurance, tools, and a vehicle to get the real number.

Government fees, added up	$720
Plus the two exam fees	$127

Does not include the bond premium, insurance premiums, the EPA 608 test, fingerprinting, tools, a vehicle, or city permits and business licenses

Our estimate

12Where these numbers come from

The labels under each table are explained on how to read a page.