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.
- License you need
- ACR Contractor, Class A Renew Annual
- Insurance you must carry
- $300,000 for Class A; Class B is $100,000
- Workers' comp
- Your choice not required in this state
- Credit score
- None. Texas does not check your credit for this license or take a 14-hour course
- To protect your pay, send notice by
- The 15th of the third month after the month you did the work (work done in January means notice by April 15)
1 What stands out in Texas for an HVAC contractor 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.
2 Who 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.
| Name | Texas Department of Licensing and Regulation (TDLR), Air Conditioning and Refrigeration program |
|---|---|
| Website | https://www.tdlr.texas.gov/acr/acr.htm |
| Look up a license | https://www.tdlr.texas.gov/LicenseSearch/ |
| The law | Occupations Code chapter 1302 |
| The rulebook | 16 TAC chapter 75 |
3 Texas HVAC contractor license requirements and fees 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.
ACR Contractor, Class A
| What you can work on | Any size unit | ||||||
|---|---|---|---|---|---|---|---|
| Add-ons to the license | Environmental air conditioning (heating and cooling for people), commercial refrigeration and process cooling (coolers, freezers, ice machines), or both | ||||||
| Experience required | 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 | ||||||
| Exam | Yes, a TDLR exam run by PSI | ||||||
| Fees |
| ||||||
| Renewal | Annual | ||||||
| Training hours each year | 8 |
ACR Contractor, Class B
| What you can work on | Cooling systems up to 25 tons and heating systems up to 1.5 million BTU per hour |
|---|---|
| Experience required | Same as Class A |
| Fees | Same as Class A |
Registered Technician
Anyone doing HVAC work for a licensed contractor. No exam and no experience needed
| Fees |
|
|---|
Certified Technician
| Experience required | A training program finished in the last 4 years, or 24 months of HVAC work under a licensed contractor | ||||
|---|---|---|---|---|---|
| Exam | Yes | ||||
| Fees |
|
4 How much insurance does an HVAC contractor 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. Confirm the exact waiver rule (16 TAC 75) before publishing. | ||||||
| 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. |
5 Does 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 |
|
6 Does 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.
7 Federal 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 |
|---|
8 Where must a Texas HVAC contractor show the license number? What is this?
In Texas: verify whether 16 TAC 75 requires the license number on advertising, contracts, invoices, and vehicles; TDLR ACR rules commonly do.
| What the number looks like | TACL / A or B / number / endorsement code (E, R, or C) |
|---|---|
| The rule | Verify whether 16 TAC 75 requires the license number on advertising, contracts, invoices, and vehicles; TDLR ACR rules commonly do |
9 Does 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: Sales tax on labor for plumbers and HVAC contractors by state
| 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 |
10 Getting 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 |
11 How much does it cost to become an HVAC contractor 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.
| Government fees, added up | $195 |
|---|
Does not include insurance premiums, the EPA 608 test, tools, a vehicle, or city permits
12Where 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