Tennessee HVAC license requirements and insurance

Who it applies to

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

Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping): any business that bids on, prices, or does heating, cooling, or refrigeration work where the job is $25,000 or more, equipment and labor included. That includes an HVAC subcontractor hired by a general contractor when the HVAC part alone is $25,000 or more

License	Who needs it	What it covers
Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping)	Any business that bids on, prices, or does heating, cooling, or refrigeration work where the job is $25,000 or more, equipment and labor included. That includes an HVAC subcontractor hired by a general contractor when the HVAC part alone is $25,000 or more	HVAC, refrigeration, and gas piping anywhere in Tennessee, up to the monetary limit the board gives you (the largest single job you may take on). The full CMC classification covers plumbing as well
Work under $25,000 (no state HVAC license)	Tennessee has no limited HVAC license like the plumbing and electrical ones. For jobs under $25,000 you check with your city or county, which may run its own HVAC license, permits, and inspections. If you hold the state CMC license, the state's page says local governments do not make you sit their exam	—

License

Who needs it

What it covers

Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping)

Any business that bids on, prices, or does heating, cooling, or refrigeration work where the job is $25,000 or more, equipment and labor included. That includes an HVAC subcontractor hired by a general contractor when the HVAC part alone is $25,000 or more

HVAC, refrigeration, and gas piping anywhere in Tennessee, up to the monetary limit the board gives you (the largest single job you may take on). The full CMC classification covers plumbing as well

Work under $25,000 (no state HVAC license)

Tennessee has no limited HVAC license like the plumbing and electrical ones. For jobs under $25,000 you check with your city or county, which may run its own HVAC license, permits, and inspections. If you hold the state CMC license, the state's page says local governments do not make you sit their exam

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Who runs it

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

Tennessee Department of Commerce and Insurance, Board for Licensing Contractors (BLC) issues HVAC licenses in Tennessee.

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

Name	Tennessee Department of Commerce and Insurance, Board for Licensing Contractors (BLC)
Website	tn.gov
Look up a license	verify.tn.gov
The law	Tennessee Code Annotated Title 62, Chapter 6
The rulebook	Tennessee Rules and Regulations chapter 0680 (0680-01 for licensing, 0680-06 for insurance)
About the exam provider	Prov runs the exams from 1 July 2026. PSI keeps running them until September 2026 while the change happens.

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Getting licensed

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

Tennessee has 2 licenses that matter to an HVAC contractor: Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping), Work under $25,000 (no state HVAC license). Each is below, with what you need before you apply.

License	Experience required	Training required	Exam
Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping)	The board requires pre-approval for the plumbing and full mechanical exams. It does not publish whether the HVAC exam needs it, or how many years of experience it wants, so ask before you apply	None required	Yes, two open-book exams run by Prov (PSI until September 2026). A Business and Law exam, plus the CMC-C trade exam. The same person does not have to take both. Up to two people from the business can be the ones who test
Work under $25,000 (no state HVAC license)	—	—	—

License

Experience required

Training required

Exam

Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping)

The board requires pre-approval for the plumbing and full mechanical exams. It does not publish whether the HVAC exam needs it, or how many years of experience it wants, so ask before you apply

None required

Yes, two open-book exams run by Prov (PSI until September 2026). A Business and Law exam, plus the CMC-C trade exam. The same person does not have to take both. Up to two people from the business can be the ones who test

Work under $25,000 (no state HVAC license)

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What it costs

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

The government fees on this page add up to about $250 in Tennessee. Add insurance, tools, and a vehicle to get the real number.

License	Application	Exam	Renewal	Approval needed before the exam	Home improvement license, application	Home improvement license, renewal	Late renewal, per month late	Changing the business type
Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping)	$250	null	$200	$0	—	—	$20	$100
Work under $25,000 (no state HVAC license)	—	—	—	—	$250	$200	—	—

Added up

Government fees, added up	$250

Does not include exam fees, the CPA financial statement, the EPA Section 608 test, insurance premiums, tools, a vehicle, or city permits and local licenses

Our estimate

Insurance

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

The least liability insurance Tennessee lets an HVAC contractor work with is $100,000. Most customers ask for more. Workers' comp is required as soon as you have one employee.

Minimum liability insurance	$100,000
Liability insurance by license size	$100,000 if your monetary limit is $500,000 or less. $500,000 if it is $500,001 to $1,500,000. $1,000,000 if it is $1,500,001 or more, including unlimited.
Type of policy	General liability insurance
Who this applies to	Every business holding the contractor license, and Home Improvement license holders. You send a certificate with the application and again at every two-year renewal
Who must be named on the certificate	The Board itself. Rule 0680-06-.03(3) says applicants and licensees must name the Board as the certificate holder on the general liability policy
Workers' comp required?	Yes, as soon as you have one employee. Construction businesses must cover everyone, owners included, unless the owner registers an exemption. Most other Tennessee businesses only need cover at five or more employees
Who can opt out	Owners can register themselves as exempt. A sole owner must own all of the business. A partner or LLC member needs at least 20 percent. A family that together owns 95 percent also qualifies. Up to five owners per business. It costs $50 if you hold a contractor license and $100 if you do not, lasts two years, and renewing is reported at $20. Exempt owners must still cover every employee

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Money checks

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

Tennessee does not check your credit for this license.

Credit score you need	None
Financial statement	A reviewed financial statement from a licensed CPA, less than 12 months old, in the exact name of the business. Audited if you want a monetary limit above $3,000,000. Your limit is ten times the lower of your working capital or net worth. For an unlimited license you need $300,000 in both
If your score is lower	From 1 July 2026 you can post a Contractors' Surety Bond for at least half the monetary limit you ask for instead of a financial statement
At renewal	A CPA-compiled statement if your limit is above $1,500,000. Below that a balance sheet you prepare yourself is enough

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Bonds

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

Tennessee 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 for a bond to hold the contractor license. From 1 July 2026 a surety bond (a promise, backed by an insurance company, that customers can be paid if you do not finish the job) is an option in place of the CPA financial statement, at half your monetary limit. The Home Improvement license for small residential jobs does need a surety bond. The state's page does not give its amount. Cities and counties with their own HVAC license may ask for one too.

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Federal rules

8Federal rules that also apply What is this?

Rules from the US government that apply to an HVAC contractor in Tennessee 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, on top of any state or local license. There are four types. Type I for small appliances, Type II for high-pressure systems like most home and commercial air conditioners, Type III for low-pressure chillers, and Universal for all three. The EPA does not run the test or issue the card. You take it through an EPA-approved certifying organization. The card does not expire

EPA refrigerant certification

Anyone who maintains, services, repairs, or disposes of equipment that could release refrigerant must hold EPA Section 608 certification, on top of any state or local license.
There are four types.
Type I for small appliances, Type II for high-pressure systems like most home and commercial air conditioners, Type III for low-pressure chillers, and Universal for all three.
The EPA does not run the test or issue the card.
You take it through an EPA-approved certifying organization.
The card does not expire

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Showing your number

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

In Tennessee: your name, license number, expiry date, and classification must be on the outside of every bid envelope, or in the electronic bid, for any job that needs the license. We found no state rule putting the number on ads, invoices, or trucks.

The rule	Your name, license number, expiry date, and classification must be on the outside of every bid envelope, or in the electronic bid, for any job that needs the license. We found no state rule putting the number on ads, invoices, or trucks
If you forget	A bid without the license details is thrown out. The board can fine you up to $5,000 for a wilful breach. Taking a job of $25,000 or more with no license is a Class A misdemeanour

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Tax

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

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

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

Equipment and materials	You are the final buyer. You pay sales tax when you buy the unit, ductwork, and parts, and you do not charge the customer tax on them
Labor on work that becomes part of the building	No sales tax. Installing or repairing a system that becomes part of the house or building is not taxed
Labor on items that can be moved	You charge tax. Repairing or installing something that stays movable, like a window unit or an appliance, is a taxable service
Window units and portable equipment	Likely treated as movable property, so tax on the sale and the labor. Still not confirmed, and there is a tension worth noting. The state's own page lists HVAC units as an example of real property, without saying whether a window unit that is not built in counts
Homes versus businesses	No difference. The test is the property, not the customer
New buildings	Same rule. You pay tax on materials and charge none on labor
Working for a tax exempt customer	You still pay the tax on your materials even when the customer is a church, a school, or a government body. Their exemption is theirs, not yours
Tax rate	7 percent state plus a local rate of up to 2.75 percent, paid where you buy the equipment

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Getting paid

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

If you are not paid in Tennessee, a lien on the property is your backstop, but only if your notice goes out on time: a Notice of Nonpayment within 90 days after the last day of each month you did unpaid work (work done in January means notice by about May 1). Miss it and you lose the lien for that month's work.

The order things have to happen in, counted in days

Day 0
Your first day on the job
The clock starts here.
Day 90
Send your notice
A Notice of Nonpayment within 90 days after the last day of each month you did unpaid work (work done in January means notice by about May 1). Miss it and you lose the lien for that month's work
Day 90
File your lien
Record a sworn Notice of Lien with the county register within 90 days after the whole project is finished or abandoned. A prime contractor's lien lasts one year after completion, and any lawsuit to enforce it must start within that year

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 remote contractor, meaning anyone hired by the contractor rather than by the property owner, on any job that is not a one- to four-family home. It goes to the owner and the prime contractor. If you were hired by the owner you do not send one
Send your notice by	A Notice of Nonpayment within 90 days after the last day of each month you did unpaid work (work done in January means notice by about May 1). Miss it and you lose the lien for that month's work
File your lien by	Record a sworn Notice of Lien with the county register within 90 days after the whole project is finished or abandoned. A prime contractor's lien lasts one year after completion, and any lawsuit to enforce it must start within that year
About home jobs	On an owner-occupied home of one to four units, only the prime contractor can claim a lien. Subcontractors and suppliers cannot

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Keeping it

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

The Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping) renews every two years. No training hours are required.

License	Renewal	Training hours each renewal
Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping)	Every two years	—

License

Renewal

Training hours each renewal

Contractor License, classification CMC-C (HVAC, Refrigeration and Gas Piping)

Every two years

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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 Tennessee What is this?

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

Tennessee has no state HVAC license for small jobs. Plumbers and electricians get a Limited Licensed version for work under $25,000. HVAC does not. Under $25,000 you answer to your city or county, and in nine counties, including Davidson, Knox, Hamilton, and Shelby, a residential job of $3,000 or more needs the state Home Improvement license instead.
At $25,000 and up, one system install can push you over the line. Then you need the full contractor license with the CMC-C classification, which means a CPA-reviewed financial statement, a reference letter, two exams, and $250.
Your liability insurance floor is set by the monetary limit the board gives your business, not by the trade. It is $100,000 up to a $500,000 limit, $500,000 up to $1,500,000, and $1,000,000 above that.
Workers' comp starts at one employee for construction trades, not the five that most Tennessee businesses get. An owner can register an exemption for $50 with a contractor license or $100 without, and must renew it every two years.
Tennessee treats you as the final buyer of the equipment. You pay sales tax when you buy the unit and charge the customer no tax on labor that makes it part of the building. The exam vendor also changes on 1 July 2026, from PSI to Prov.
The federal EPA Section 608 card is a separate requirement from all of the above. Anyone who opens a refrigerant circuit needs it, whether or not the state license applies.

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14Where these numbers come from

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