Tennessee: HVAC contractor licensing, reciprocity and contract rules.

This page lists what Tennessee publishes about licensing an HVAC or mechanical contractor and contracting with homeowners: who issues the licence, whether one is required statewide, the classes and qualifications, insurance or bond minimums, reciprocity with other states, renewal and continuing education, and the state's home-improvement contract statute if it has one.

It is built for owners of residential HVAC companies, especially those hiring across a state line or opening a second territory. Every entry is a snapshot of what the cited source published on the verification date; it is a research starting point, not legal advice.

Tennessee, field by field.

Contractor licensing authority

Tennessee Board for Licensing Contractors, Department of Commerce and Insurance, under Tennessee Code Annotated Title 62, Chapter 6 (contractors, home improvement contractors, limited licensed electricians and limited licensed plumbers) and the Rules of the Tennessee Board for Licensing Contractors, Title 0680 (chapters 0680-01 Licensing through 0680-09 Continuing Education, per the Secretary of State's index).

HVAC licence required

Statewide above threshold — "A contractor's license is required before contracting, including bidding, offering to engage, or negotiating a price, for projects of $25,000 or more when acting as a prime contractor, certain subcontractor, or construction manager/consultant"; "Subcontractors must be licensed when contracting directly with a contractor, not the owner, to perform electrical, mechanical, plumbing, HVAC, or roofing work when that portion of the project is $25,000 or more, including materials, equipment, and labor" (Board "Get a Contractor License" page); the Classification Outline adds "Mechanical subcontractors performing mechanical work over $25K must be licensed as contractors." HVAC falls under CMC-C — described as "HVAC, Refrigeration and Gas Piping; Solar HVAC (Geothermal)" on the Classification Outline and as item "C. HVAC, Refrigeration, Gas Piping" under "MC (CMC) – Mechanical Contracting" in Rule 0680-01-.16 Appendix A — or the full CMC Mechanical classification. In counties that adopt the home improvement law, a Home Improvement licence is required for "residential remodeling projects from $3,000 to $24,999" (Board Home Improvement page, citing T.C.A. § 62-6-501(4)(A)); the Board's page lists examples (driveways, swimming pools, porches, garages, landscaping, fences, roofing, painting) and does not say whether HVAC work is included.

Licence classes & qualifications

CMC-C (HVAC, Refrigeration and Gas Piping; Solar HVAC/Geothermal) and CMC (full mechanical) each require a trade exam; "Pre-approval is required by the Board to take the plumbing CMC-A or full mechanical CMC exam", with a $50 fee (Board page). Every applicant passes the Tennessee Business and Law exam through a Qualifying Agent; "Beginning July 1, 2026, Prov will begin administering the exams for the Tennessee Board for Licensing Contractors" (PSI continues already-scheduled exams through September 2026) and exams "are typically valid for two (2) years" (Board page). The monetary limit is determined by "Ten (10) times the applicant's net worth; or ... Ten (10) times the applicant's working capital" (Rule 0680-01-.13(1)); the Board page states it as 10 times the lesser of working capital or net worth, plus required experience, with a 10% tolerance (Rule 0680-01-.13(8)); "Where an applicant can demonstrate having a minimum working capital and net worth of three hundred thousand dollars ($300,000) or more, the Board may, in its discretion, award the applicant an unlimited license" (Rule 0680-01-.13(9)). Financial statement: reviewed by a licensed independent CPA or LPA for limits of $3,000,000 or less, audited above (Board page); every statement must be executed by a licensed public accountant or CPA on letterhead with licence number, prepared under GAAP, dated no earlier than twelve months before application and prepared in the applicant's name (Rule 0680-01-.32, new rule effective November 18, 2025). "Surety Bond Option: Beginning July 1, 2026, contractors may use the new Contractors' Surety Bond option as an alternative to submitting a CPA-reviewed or CPA-audited financial statement. The surety bond must be in an amount equal to at least 50% of the monetary limit requested" (Board page). A letter of reference and a notarized Contractor's Affidavit are required; initial application fee $250 (Board fees page).

Insurance / bond minimum

General liability insurance scaled to the monetary limit (Rule 0680-6-.02(1)): "not less than one hundred thousand dollars ($100,000)" for all home improvement contractors and for general contractor limits between $0 and $500,000 (0680-6-.02(1)(a)); "not less than five hundred thousand dollars ($500,000)" for limits of $500,001 to $1,500,000 (0680-6-.02(1)(b)); "not less than one million dollars ($1,000,000)" for limits of $1,500,001 or more (0680-6-.02(1)(c)); a certificate of insurance is filed at application and at every renewal (0680-6-.03(1)-(2)); the Board's Insurance Resource sheet repeats the same table and cites T.C.A. § 62-6-111(a)(1). Workers' compensation coverage, or registration as a "Construction Services Provider" on the exemption registry, or the exemption questionnaire (Board Insurance Resource sheet). Home Improvement licence: "A surety bond shall be in the amount of ten thousand dollars ($10,000.00)" for the benefit of a claimant damaged by the contractor's breach of a home improvement contract, or an irrevocable letter of credit of $10,000 (Rule 0680-07-.13(2)(a)1, (2)(b)1; Board page also lists a cash or property bond).

Reciprocity

"You cannot operate in Tennessee with a license from another state." Trade-exam waivers only (the Business and Law exam is still required), applied for through the License Verification and Waiver of Trade Exam form completed by the other state: Alabama (General, Electrical, Residential, HVAC), Arkansas (Commercial/Residential Building only), Louisiana (Residential, Commercial, Electrical, Mechanical), Mississippi (Residential, Commercial, Electrical, Mechanical Unlimited), North Carolina (Residential/Commercial Building and Electrical), Ohio (Electrical, Plumbing, HVAC), South Carolina (commercial only: Building, Electrical, HVAC, Plumbing), West Virginia (Residential, Commercial, Industrial Building, Electrical, Mechanical, Masonry); the NASCLA National Commercial exam is accepted. Waivers do not apply to Home Improvement, LLE or LLP licences (Board page).

Renewal & continuing education

Contractor renewal fee $200 with a late penalty of $20 per month up to 12 months; Home Improvement renewal $200 with a late penalty of $10 per month up to 3 months; LLE/LLP renewal $50 (Board fees page); renewal opens in the CORE account within 90 days of expiration and the Board's page refers to "bi-annual" renewal (Board renewal page); indemnities "expire at license renewal, not to exceed two (2) years" (Board contractor page). At renewal, "A renewal application for a monetary limitation greater than one million five hundred thousand dollars ($1,500,000) must be accompanied by a compilation prepared by a licensed public accountant or certified public accountant"; for $1,500,000 or less "the applicant must submit a notarized statement that the information contained in his or her financial statement is true and correct" (Rule 0680-01-.10, as amended effective November 18, 2025; the Board's renewal page describes a self-prepared balance sheet), and a certificate of general liability insurance and workers' compensation proof or exemption registration are filed (Board renewal page; Rule 0680-6-.03(2)). A renewed Home Improvement licence "shall expire two (2) years from the date on which the previously issued license expired", and no renewal application is accepted more than ninety days after expiration (Rule 0680-07-.09(1),(3)). Continuing education: "Beginning January 1, 2020, as a prerequisite for the renewal of a residential contractor's license with a classification of BC-A, BC-A/r, or BC-A,b(sm), the licensee shall obtain eight (8) hours" of Board-approved Residential Continuing Education per renewal period; a residential contractor licensed before January 1, 2009 is exempt (Rule 0680-09-.02(1)); no CE requirement is published for CMC or CMC-C.

Home-improvement contract rule

Tenn. Code Ann. §§ 62-6-501 et seq. (Home Improvement Contractors), administered by the Board under Rules ch. 0680-07: a Home Improvement licence is required for "residential remodeling projects from $3,000 to $24,999" in counties whose legislative body adopts the law "by two-thirds (2/3) majority vote" (Rule 0680-07-.14, under § 62-6-516(b)) — the Board lists Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford and Shelby; a licensee may not advertise in a newspaper, magazine, circular or printed document, or by television or radio, "unless the name and license number of the contractor is stated in the advertisement" (Rule 0680-07-.04(1), under § 62-6-510(9)); the $10,000 surety bond (or $10,000 irrevocable letter of credit) is "for the benefit of a claimant, who has been damaged by the contractor's breach of a home improvement contract" and the licence becomes invalid if the bond ceases to be in effect (Rule 0680-07-.13(2)); the security required by § 62-6-506(h) must be filed before the licence issues (Rule 0680-07-.12); the Board's civil-penalty schedule covers the prohibited acts in § 62-6-510(1)-(16) at $50–$500, and $50–$25,000 for § 62-6-510(3) and (4) (Rule 0680-07-.16). Deposit: the Department of Commerce and Insurance and Attorney General consumer release of March 20, 2025 states "Tennessee's Home Improvement law prohibits contractors from asking for a down payment of more than 1/3 of the total contract" and "State law prohibits requiring more than one-third down payment." Written-contract content of § 62-6-508 and the full text and exceptions of § 62-6-510: Not verified — the Tennessee Code is published through LexisNexis, which could not be fetched, and no Board page restates them.