Maryland HVAC license requirements and insurance

Who it applies to

1Who needs a heating and air conditioning license in Maryland? What is this?

Master: anyone who contracts with customers for every kind of HVACR work. This is the full contractor license

License	Who needs it	What it covers
Apprentice	Anyone who helps with HVACR work while learning the trade. You must hold it for four years before you can sit the journeyman exam	Helping with heating, cooling, ventilation and refrigeration work while supervised
Journeyman	An HVACR worker employed by a licensed contractor. You cannot contract with customers on this license	All HVACR work, under the direction and control of a licensed contractor
Master	Anyone who contracts with customers for every kind of HVACR work. This is the full contractor license	Installing, maintaining, altering, remodeling and repairing heating, cooling, refrigeration, ventilation and hydronic systems (heating or cooling that moves water through pipes)
Master Restricted	Anyone who contracts with customers in only one part of the trade	One area only. The areas are forced air heating, hydronic heating, ventilation, air-conditioning, and refrigeration. You can hold more than one area and you pay for each
Limited	Anyone who contracts with customers only to maintain or repair systems, and never installs them	Maintenance and repair only, on heating, cooling, refrigeration, ventilation or hydronic systems

License

Who needs it

What it covers

Anyone who helps with HVACR work while learning the trade. You must hold it for four years before you can sit the journeyman exam

Helping with heating, cooling, ventilation and refrigeration work while supervised

Journeyman

An HVACR worker employed by a licensed contractor. You cannot contract with customers on this license

All HVACR work, under the direction and control of a licensed contractor

Master

Anyone who contracts with customers for every kind of HVACR work. This is the full contractor license

Installing, maintaining, altering, remodeling and repairing heating, cooling, refrigeration, ventilation and hydronic systems (heating or cooling that moves water through pipes)

Master Restricted

Anyone who contracts with customers in only one part of the trade

One area only. The areas are forced air heating, hydronic heating, ventilation, air-conditioning, and refrigeration. You can hold more than one area and you pay for each

Limited

Anyone who contracts with customers only to maintain or repair systems, and never installs them

Maintenance and repair only, on heating, cooling, refrigeration, ventilation or hydronic systems

Who runs it

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

Maryland State Board of Heating, Ventilation, Air-Conditioning and Refrigeration Contractors (the HVACR Board), part of the Maryland Department of Labor issues HVAC licenses in Maryland.

See how this compares in every state: How to check a contractor's license, state by state

Name	Maryland State Board of Heating, Ventilation, Air-Conditioning and Refrigeration Contractors (the HVACR Board), part of the Maryland Department of Labor
Website	labor.maryland.gov
Look up a license	dllr.state.md.us
The law	Business Regulation Article, Title 9A
The rulebook	COMAR 09.15 (the Code of Maryland Regulations, HVACR Board)
Who runs the exam	PSI

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Getting licensed

3How to become an HVAC contractor in Maryland What is this?

Maryland has 5 licenses that matter to an HVAC contractor: Apprentice, Journeyman, Master, Master Restricted, Limited. Each is below, with what you need before you apply.

License	Experience required	Exam
Apprentice	—	No exam listed by the board
Journeyman	Four years holding an apprentice license, with at least 6,000 hours of training in that time	Yes, a journeyman exam run by PSI. You need a score of 70 percent. The state does not publish the PSI fee
Master	Three years as a licensed journeyman working in all areas of HVACR under a master. At least 1,875 of those hours must fall in the year before you apply	Yes, a master exam run by PSI. You need a score of 70 percent. The state does not publish the PSI fee
Master Restricted	Three years as a licensed journeyman doing HVACR work. At least 1,875 of those hours must fall in the year before you apply	Yes, a master restricted exam run by PSI. You need a score of 70 percent
Limited	Two years as a licensed journeyman doing HVACR work under a master. At least 1,000 of those hours must fall in the year before you apply	Yes, a limited contractor exam run by PSI. You need a score of 70 percent

License

Experience required

Exam

Apprentice

—

No exam listed by the board

Journeyman

Four years holding an apprentice license, with at least 6,000 hours of training in that time

Yes, a journeyman exam run by PSI. You need a score of 70 percent. The state does not publish the PSI fee

Master

Three years as a licensed journeyman working in all areas of HVACR under a master. At least 1,875 of those hours must fall in the year before you apply

Yes, a master exam run by PSI. You need a score of 70 percent. The state does not publish the PSI fee

Master Restricted

Three years as a licensed journeyman doing HVACR work. At least 1,875 of those hours must fall in the year before you apply

Yes, a master restricted exam run by PSI. You need a score of 70 percent

Limited

Two years as a licensed journeyman doing HVACR work under a master. At least 1,000 of those hours must fall in the year before you apply

Yes, a limited contractor exam run by PSI. You need a score of 70 percent

What it costs

4How much does an HVAC license cost in Maryland? What is this?

The government fees on this page add up to about $131.5 in Maryland. Add insurance, tools, and a vehicle to get the real number.

License	First license	Renewal
Apprentice	$12	$12
Journeyman	$25	$25
Master	$94.5	$94.5
Master Restricted	$31.5	$31.5
Limited	$94.5	$94.5

Added up

Government fees, added up	$131.5

Does not include the two PSI exam fees, the EPA 608 test, insurance premiums, tools, a vehicle, or county permits

Our estimate

Insurance

5How much HVAC insurance do you need in Maryland? What is this?

The least liability insurance Maryland lets an HVAC contractor work with is $300,000 for injury and $100,000 for property damage. Most customers ask for more. Workers' comp is required from the first employee.

Minimum liability insurance	$300,000
Minimum liability insurance (property damage)	$100,000
Type of policy	General liability insurance, plus property damage insurance
Who this applies to	Anyone holding a master, master restricted or limited license who contracts with customers. Your employer can buy the policy instead, but then it only covers work you do for that employer
Who must be named on the certificate	The law does not name one. You send proof of insurance to the board with your application and at each renewal
Workers' comp required?	Yes
Workers' comp: what to know	Every Maryland employer must carry workers' comp for its employees. A sole owner is not covered unless they choose to be, by writing to the Workers' Compensation Commission and the insurer. Before a state or local office gives an employer a license or permit, it asks for a workers' comp policy number or a certificate of compliance from the Commission.
Workers' comp: if you skip it	A fine of up to $10,000 for an employer that does not carry it
Who can opt out	An officer of a company, or a member of an LLC, counts as a covered employee if the company pays them for work they do. Some may opt out. An officer of a close corporation may. So may an officer of a professional corporation who owns at least 20 percent of the shares and does professional work. So may a member of an LLC who owns at least 20 percent of the profits. No more than five officers of an ordinary corporation may opt out. The company must send the Commission and its insurer a written notice naming each person who has opted out
Other requirements	You must tell the board at least 10 days before your policy is canceled. Journeymen and apprentices working for a licensed contractor do not need their own policy. A license on inactive status needs no insurance, and you may not work on it.

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Money checks

6Does Maryland check your credit for an HVAC contractor license? What is this?

Maryland does not check your credit for this license.

Credit score you need	None. The board does not check your credit, net worth or bank balance for an HVACR license
If your score is lower	Not needed
How we know	The HVACR law asks for experience, an exam and insurance. The board's rules have no section on credit, net worth or a financial statement.
About home improvement licenses	The Maryland Home Improvement Commission does check finances for its own license. The home improvement law leaves out a licensed HVACR contractor who stays within the trade or installs a central heating or air-conditioning system. If you also sell other home improvement work, that license and its money check apply to you.

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Bonds

7Does an HVAC contractor need a bond in Maryland? What is this?

Maryland does not require a state bond for this license. Some cities ask for one before they issue permits.

Does the state require a bond?	No
Amount	Not listed yet

The state does not ask an HVACR contractor for a bond (a promise, backed by an insurance company, that customers can be paid if you do not finish the job). The law also says proof of your state insurance can stand in for a bond a county or city asks for on HVACR work.

Checked by a person against the official page·mgaleg.maryland.gov

Federal rules

8Federal rules that also apply What is this?

Rules from the US government that apply to an HVAC contractor in Maryland 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 certification. Maryland does not issue it, and it sits on top of the state license. The card comes in Type I, Type II, Type III and Universal, and it does not expire. An apprentice is let off while a certified technician supervises them.

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

Showing your number

9Where must a Maryland HVAC contractor show the license number? What is this?

In Maryland: every contract must show the license category and number of the licensed contractor responsible for the work, in the format above.

What the number looks like	Md.-HVAC, then the category prefix, then the license number. The rule writes the prefixes with a leading dot: .01 for a master, .02 for a master restricted, .06 for a limited license. Letters and numbers at least 1.5 inches high
On quotes, contracts, and invoices	Every contract must show the license category and number of the licensed contractor responsible for the work, in the format above
On ads	Every printed, audio or video ad must show the same category and number
On your vehicles	Both sides of every vehicle you mainly use for HVACR work must show the category and number, in letters at least 1.5 inches high
If you forget	The board can fine you up to $5,000 for each violation of the HVACR law or its rules

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Tax

10Does an HVAC contractor charge sales tax on labor in Maryland? What is this?

In Maryland, no sales tax. Maryland taxes only a short list of services, and HVACR work on a building is not on it. The rest of the rules are below.

See how this compares in every state: Can you charge sales tax on labor? The rule in 25 states

Who pays tax on materials	You. Maryland makes anyone who builds, alters or repairs a building pay sales tax on the materials that become part of it. Your supplier charges you when you buy furnaces, condensers, ductwork and refrigerant lines.
Materials you bill to the customer	You do not add sales tax to the customer's bill. Build the tax you paid into your price. Writing "tax included" or "tax exempt" in the contract changes nothing.
Labor	No sales tax. Maryland taxes only a short list of services, and HVACR work on a building is not on it.
Homes versus businesses	Same rule for a home and a business
New buildings	Same rule as repairs. You pay tax on the materials when you buy them
Working for a tax exempt customer	Work for the government is still taxed on your materials. For some charities, schools and churches you can buy materials tax-free with the customer's exemption certificate and your signed statement to the supplier.
Things that are not part of the building	Whether an item counts as part of the building turns on why it was put there. Something fitted to improve the building permanently becomes part of it, and you pay the tax on it. Something put in for temporary use, or used as a machine in its own right, stays personal property, and selling it is a taxable sale
Equipment and materials	Tools and equipment you use on the job but do not leave in the building are always taxed when you buy them
Tax rate	6 percent statewide. Maryland has no local sales tax

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Getting paid

11Getting paid: lien and notice deadlines for a Maryland HVAC contractor What is this?

If you are not paid in Maryland, a lien on the property is your backstop, but only if your notice goes out on time: you have 120 days after doing the work or delivering the materials to give the owner written notice of an intention to claim a lien. Giving it counts when you send it by registered or certified mail with a return receipt, or hand it to the owner. If the owner cannot be found, you may post it on the front of the building in front of a witness, still inside the 120 days.

The order things have to happen in, counted in days

Day 0
Your first day on the job
The clock starts here.
Day 120
Send your notice
You have 120 days after doing the work or delivering the materials to give the owner written notice of an intention to claim a lien. Giving it counts when you send it by registered or certified mail with a return receipt, or hand it to the owner. If the owner cannot be found, you may post it on the front of the building in front of a witness, still inside the 120 days
Day 180
File your lien
You have 180 days after the work was finished or the materials delivered (last work on March 1 means you file by August 28). You file a petition in the circuit court of the county where the property is.

Each day count is counted from the day the rule beside it names, which is not always the same day. Read the sentence under each one.

Who has to send a notice	A subcontractor, meaning anyone hired by the contractor and not by the owner. If the owner hired you directly, you do not send this notice.
Send your notice by	You have 120 days after doing the work or delivering the materials to give the owner written notice of an intention to claim a lien. Giving it counts when you send it by registered or certified mail with a return receipt, or hand it to the owner. If the owner cannot be found, you may post it on the front of the building in front of a witness, still inside the 120 days
File your lien by	You have 180 days after the work was finished or the materials delivered (last work on March 1 means you file by August 28). You file a petition in the circuit court of the county where the property is.
The small-job exception	A repair or replacement only gives you lien rights if the work on the building adds up to at least 15 percent of the building's value. New buildings have no such floor.
Homes the owner lives in	On a single-family home being built for the owner to live in, a subcontractor's lien cannot be more than what the owner still owes the contractor on the day your notice arrives. Send it early.

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Keeping it

12How do you renew an HVAC license in Maryland? What is this?

The Master renews every two years. You must show proof of insurance each time, unless you ask the board for inactive status.

License	Renewal	Training hours each renewal
Apprentice	Every two years	—
Journeyman	Every two years	—
Master	Every two years. You must show proof of insurance each time, unless you ask the board for inactive status	None found. The law section on renewal lists the fee, the form and proof of insurance, and no class hours
Master Restricted	Every two years	—
Limited	Every two years	—

License

Renewal

Training hours each renewal

Apprentice

Every two years

—

Journeyman

Every two years

—

Master

Every two years. You must show proof of insurance each time, unless you ask the board for inactive status

None found. The law section on renewal lists the fee, the form and proof of insurance, and no class hours

Master Restricted

Every two years

—

Limited

Every two years

—

Renewal fees are in what the license costs. The official page for each license is linked under how you get it.

Watch out

13What catches people out in Maryland What is this?

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

Maryland has three contractor-level HVACR licenses. Master covers everything, master restricted covers one area such as refrigeration, and limited covers repair and maintenance only.
The ladder is fixed. Four years and 6,000 hours as a licensed apprentice, then three years as a licensed journeyman, before you can sit the master exam.
Hours in the last year count on their own. The board wants 1,875 of them in the 12 months before a master application, so a long break can set you back.
Your trucks, ads and contracts must carry the number in a set format, Md. HVAC with a category prefix. On vehicles the letters must be at least 1.5 inches high.
A contractor who stops working can park the license on inactive status at renewal. No insurance is needed while it is inactive, and no work is allowed.

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14Where these numbers come from

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