Texas HVAC license requirements and insurance
To work for yourself as an HVAC contractor in Texas, you need the ACR Contractor, Class A license. Texas has 4 HVAC license types, and which one you need depends on the work you take on. The state's minimum liability insurance is $300,000, and workers' comp is your choice. The state does not ask for a bond.
1Who needs a heating and air conditioning license in Texas? What is this?
Texas has 4 license types that matter to an HVAC contractor. The ACR Contractor, Class A needs 48 months of hands-on HVAC work under a licensed contractor within the last 6 years, or 12 months as a Texas Certified Technician plus 36 months of work in the last 4 years.
| License | Who needs it | What it covers |
|---|---|---|
| ACR Contractor, Class A | — | Any size unit |
| ACR Contractor, Class B | — | Cooling systems up to 25 tons and heating systems up to 1.5 million BTU per hour |
| Registered Technician | Anyone doing HVAC work for a licensed contractor. No exam and no experience needed | — |
| Certified Technician | — | — |
2Who issues HVAC contractor licenses in Texas? What is this?
Texas Department of Licensing and Regulation (TDLR), Air Conditioning and Refrigeration program issues HVAC licenses in Texas.
See how this compares in every state: How to check a contractor's license, state by state
| Name | Texas Department of Licensing and Regulation (TDLR), Air Conditioning and Refrigeration program |
|---|---|
| Website | tdlr.texas.gov |
| Look up a license | tdlr.texas.gov |
| The law | Occupations Code chapter 1302 |
| The rulebook | 16 TAC chapter 75 |
3How to become an HVAC contractor in Texas What is this?
Texas has 4 licenses that matter to an HVAC contractor: ACR Contractor, Class A, ACR Contractor, Class B, Registered Technician, Certified Technician. Each is below, with what you need before you apply.
| License | Experience required | Exam |
|---|---|---|
| ACR Contractor, Class A | 48 months of hands-on HVAC work under a licensed contractor within the last 6 years, or 12 months as a Texas Certified Technician plus 36 months of work in the last 4 years | Yes, a TDLR exam run by PSI |
| ACR Contractor, Class B | Same as Class A | — |
| Registered Technician | — | — |
| Certified Technician | A training program finished in the last 4 years, or 24 months of HVAC work under a licensed contractor | Yes |
4How much does an HVAC license cost in Texas? What is this?
The government fees on this page add up to about $195 in Texas. Add insurance, tools, and a vehicle to get the real number.
| License | Application | Renewal | Exam sitting (paid to PSI) |
|---|---|---|---|
| ACR Contractor, Class A | $115 | $65 | null |
| ACR Contractor, Class B | — | — | — |
| Registered Technician | $20 | $20 | — |
| Certified Technician | $50 | $35 | — |
Added up
| Government fees, added up | $195 |
|---|
Does not include insurance premiums, the EPA 608 test, tools, a vehicle, or city permits
5How much HVAC insurance do you need in Texas? What is this?
The least liability insurance Texas lets an HVAC contractor work with is $300,000. Most customers ask for more. Workers' comp is your choice.
| Class A license |
| ||||||
|---|---|---|---|---|---|---|---|
| Class B license |
| ||||||
| Type of policy | Commercial general liability | ||||||
| If you will not do work for the public | After you pass the exam, you send TDLR proof of insurance, or a waiver saying you will not do work for the public. The waiver is set out in the department's rules, so ask the department which form applies to you. | ||||||
| Workers' comp required? | No | ||||||
| Workers' comp: what to know | Texas does not make private employers carry workers' comp. If you skip it, you must tell the state Division of Workers' Compensation that you have opted out. |
6Does Texas check your credit for an HVAC contractor license? What is this?
Texas does not check your credit for this license.
| Credit score you need | None. Texas does not check your credit for this license |
|---|---|
| If your score is lower | Not needed |
| How we know |
|
7Does an HVAC contractor need a bond in Texas? What is this?
Texas 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 |
|---|
The state does not ask for one. Some cities do before they let you pull permits, so check with your city.
8Federal rules that also apply What is this?
Rules from the US government that apply to an HVAC contractor in Texas on top of the state's own.
| EPA refrigerant certification | Anyone who handles refrigerant must hold EPA Section 608 certification, on top of the Texas license |
|---|
9Where must a Texas HVAC contractor show the license number? What is this?
In Texas: the state rules for this trade do not say where the license number must appear. Ask the department before you letter a van or print a quote.
| What the number looks like | TACL / A or B / number / endorsement code (E, R, or C) |
|---|---|
| The rule | The state rules for this trade do not say where the license number must appear. Ask the department before you letter a van or print a quote |
10Does an HVAC contractor charge sales tax on labor in Texas? What is this?
In Texas, no sales tax. 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
| Labor on homes (repairs and remodels) | No sales tax |
|---|---|
| Repairs and remodels on businesses | You charge tax on the whole bill, labor and materials |
| Labor on new buildings | No sales tax |
| Materials, when you quote one total price | You pay tax when you buy the materials and do not charge the customer |
| Materials, when you list them separately | You buy materials tax-free with a resale certificate and charge the customer tax on them |
11Getting paid: lien and notice deadlines for a Texas HVAC contractor What is this?
If you are not paid in Texas, a lien on the property is your backstop, but only if your notice goes out on time: the 15th of the third month after the month you did the work (work done in January means notice by April 15).
| Who has to send a notice | Subcontractors and suppliers who were hired by the contractor, not by the property owner |
|---|---|
| Business jobs: send your notice by | The 15th of the third month after the month you did the work (work done in January means notice by April 15) |
| Home jobs: send your notice by | The 15th of the second month after the month you did the work (work done in January means notice by March 15) |
| Business jobs: file your lien by | The 15th of the fourth month after your last day of work |
| Home jobs: file your lien by | The 15th of the third month after your last day of work |
12How do you renew an HVAC license in Texas? What is this?
The ACR Contractor, Class A renews every year. You need 8 hours of training each year.
| License | Renewal | Training hours each year |
|---|---|---|
| ACR Contractor, Class A | Annual | — |
Renewal fees are in what the license costs. The official page for each license is linked under how you get it.
13What catches people out in Texas What is this?
The things people get wrong or do not expect about Texas, in a few sentences.
- Your license class sets your insurance minimum. Class A needs $300,000 per claim. Class B, for smaller systems, needs $100,000.
- Everyone who does HVAC work for you must be registered or certified with TDLR, including helpers. Registration costs $20 and has no exam.
- After you pass the exam you must send TDLR proof of insurance, or a waiver saying you will not do work for the public.
- Workers' comp is optional in Texas. If you go without it you must tell the state you have opted out.
- Anyone who handles refrigerant also needs the federal EPA Section 608 card. Texas does not issue it; the state license is separate.
14Where these numbers come from
The labels under each table are explained on how to read a page.
- tdlr.texas.gov/media/pdf/ACR%20at%20a%20Glance.pdf
- tdlr.texas.gov/acr/contractor-apply.htm
- tdlr.texas.gov/acr/contractor-renew.htm
- tdi.texas.gov/wc/employer/index.html
- law.cornell.edu/regulations/texas/title-16/part-4/chapter-75
- texas.public.law/statutes/tex._occ._code_section_1302.251
- tdlr.texas.gov/acr/acrrules.htm
- comptroller.texas.gov/taxes/publications/94-116.php
- texas.public.law/statutes/tex._prop._code_section_53.056
- texas.public.law/statutes/tex._prop._code_section_53.052
- epa.gov/section608