Trades by State
We are an independent site, not a government office, and this is not legal advice. Every number links to the official page it came from and shows when we last checked it.

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.

Who it applies to

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.

LicenseWho needs itWhat 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 TechnicianAnyone doing HVAC work for a licensed contractor. No exam and no experience needed—
Certified Technician——
Who runs it

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.

NameTexas Department of Licensing and Regulation (TDLR), Air Conditioning and Refrigeration program
Websitetdlr.texas.gov
Look up a licensetdlr.texas.gov
The lawOccupations Code chapter 1302
The rulebook16 TAC chapter 75
Checked by a person against the official page
Getting licensed

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.

LicenseExperience requiredExam
ACR Contractor, Class A48 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 yearsYes, a TDLR exam run by PSI
ACR Contractor, Class BSame as Class A—
Registered Technician——
Certified TechnicianA training program finished in the last 4 years, or 24 months of HVAC work under a licensed contractorYes
What it costs

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.

LicenseApplicationRenewalExam sitting (paid to PSI)
ACR Contractor, Class A$115$65null
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

Our estimate
Insurance

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
Per claim$300,000
Per year, all claims$600,000
Cover for finished work$300,000
Class B license
Per claim$100,000
Per year, all claims$200,000
Cover for finished work$100,000
Type of policyCommercial general liability
If you will not do work for the publicAfter 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 knowTexas 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.
Money checks

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 needNone. Texas does not check your credit for this license
If your score is lowerNot needed
How we know
  • The air conditioning rules, 16 TAC chapter 75, run to 29 sections.
  • Not one is about a bond, a surety, financial responsibility, net worth, or credit.
  • Insurance has its own section, 75.40
Bonds

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.

Federal rules

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 certificationAnyone who handles refrigerant must hold EPA Section 608 certification, on top of the Texas license
Checked by software against the official page·epa.gov
Showing your number

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 likeTACL / A or B / number / endorsement code (E, R, or C)
The ruleThe 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
Checked by software against the official page·tdlr.texas.gov
Tax

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.

Labor on homes (repairs and remodels)No sales tax
Repairs and remodels on businessesYou charge tax on the whole bill, labor and materials
Labor on new buildingsNo sales tax
Materials, when you quote one total priceYou pay tax when you buy the materials and do not charge the customer
Materials, when you list them separatelyYou buy materials tax-free with a resale certificate and charge the customer tax on them
Checked by a person against the official page·comptroller.texas.gov
Getting paid

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 noticeSubcontractors and suppliers who were hired by the contractor, not by the property owner
Business jobs: send your notice byThe 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 byThe 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 byThe 15th of the fourth month after your last day of work
Home jobs: file your lien byThe 15th of the third month after your last day of work
Keeping it

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.

LicenseRenewalTraining hours each year
ACR Contractor, Class AAnnual—

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 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.

  1. tdlr.texas.gov/media/pdf/ACR%20at%20a%20Glance.pdf
  2. tdlr.texas.gov/acr/contractor-apply.htm
  3. tdlr.texas.gov/acr/contractor-renew.htm
  4. tdi.texas.gov/wc/employer/index.html
  5. law.cornell.edu/regulations/texas/title-16/part-4/chapter-75
  6. texas.public.law/statutes/tex._occ._code_section_1302.251
  7. tdlr.texas.gov/acr/acrrules.htm
  8. comptroller.texas.gov/taxes/publications/94-116.php
  9. texas.public.law/statutes/tex._prop._code_section_53.056
  10. texas.public.law/statutes/tex._prop._code_section_53.052
  11. epa.gov/section608