Texas: HVAC contractor licensing, reciprocity and contract rules.

This page lists what Texas 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.

Texas, field by field.

Contractor licensing authority

Texas Department of Licensing and Regulation (TDLR), Air Conditioning and Refrigeration Contractors program, under Texas Occupations Code Chapter 1302 (Air Conditioning and Refrigeration Contractors) and 16 Texas Administrative Code Chapter 75 (Air Conditioning and Refrigeration Contractors Administrative Rules), both linked from TDLR's laws and rules page.

HVAC licence required

Statewide — "A person may not engage in air conditioning and refrigeration contracting unless the person holds an air conditioning and refrigeration contractor license under this subchapter or Subchapter G" (Tex. Occ. Code § 1302.251(a)), with no dollar threshold; the licence "is valid throughout the state" and no municipal licence is required (§ 1302.251(b)); "air conditioning and refrigeration contracting" means "performing or offering to perform the design, installation, construction, repair, maintenance, service, or modification of equipment or a product in an environmental air conditioning system, a commercial refrigeration system, or a process cooling or heating system", excluding thermostat work by a person licensed or registered under Chapter 1702 (§ 1302.002(2)); licences are Class A (equipment "of any size or capacity") or Class B (not more than "25 tons cooling capacity" or "1.5 million British thermal units per hour output heating capacity") (§ 1302.253), endorsed for environmental air conditioning and/or commercial refrigeration and process cooling or heating (§ 1302.254); a contracting company "must employ full-time in each permanent office a license holder who holds an appropriate license assigned to that company" and otherwise "may not collect a fee or otherwise enforce the contract" (§ 1302.252). Exemptions include a person contracting "in a building owned solely by the person as the person's home" (§ 1302.053) and work on "a portable or self-contained ductless air conditioning product that has a cooling capacity of three tons or less", a portable or self-contained heating product not requiring forced air movement outside the unit, temporary environmental air conditioning equipment not fixed in place, and a residential refrigerator, freezer or ice machine (§ 1302.058); TDLR's FAQ states a mini-split is a split system, not self-contained, and requires a licensed contractor.

Licence classes & qualifications

Class A or Class B Air Conditioning and Refrigeration Contractor licence with an endorsement: the applicant must be at least 18 and have "at least 48 months of practical experience in air conditioning and refrigeration-related work under the supervision of a licensed air conditioning and refrigeration contractor in the preceding 72 months", or have "held a technician certification issued under this chapter for the preceding 12 months" plus at least 36 months of such supervised experience in the preceding 48 months (§ 1302.255(a)); a four-year degree or diploma in air conditioning or refrigeration engineering or technology or mechanical engineering counts as 24 months, a two-year associate's degree, diploma or certification program as 12 months, a one-year certification program as six months (§ 1302.255(c)), and "Every 2,000 hours of on-the-job training in an apprenticeship program is equivalent to 12 months of practical experience" (§ 1302.255(d)); the executive director prescribes "a separate examination for each class of license" and for each endorsement (§ 1302.257), administered by PSI after TDLR confirms eligibility (TDLR exam page); application fee $115, and all requirements including the exam must be completed within one year of filing (TDLR application page).

Insurance / bond minimum

Commercial general liability insurance from an insurer authorized to sell liability insurance in Texas, no bond: Class A — $300,000 per occurrence and $600,000 aggregate for property damage and bodily injury, plus $300,000 aggregate for products and completed operations; Class B — $100,000 per occurrence, $200,000 aggregate, $100,000 products/completed operations aggregate; one policy at Class A limits covers both classes (TDLR application and reciprocity pages); "The commission by rule shall set insurance requirements for a license holder under this chapter" (§ 1302.102(a)) and the licence issues only on "evidence of insurance coverage required by rule" (§ 1302.260(a)(5)); the certificate of insurance is filed after passing the exam and coverage is maintained at all times while the licence is active (TDLR application page); "The executive director may waive the insurance requirements for a license holder who does not engage in air conditioning and refrigeration contracting for the public" (§ 1302.102(b); TDLR renewal page).

Reciprocity

"Texas reciprocates with South Carolina and Georgia" (TDLR FAQ; reciprocity page); the out-of-state licence must have been held at least one year. Georgia: a Class II Conditioned Air unrestricted licence in good standing → Texas Class A Environmental Air Conditioning; "No other Georgia licenses are accepted through reciprocity." South Carolina: Air Conditioning and Heating → Class A Environmental Air Conditioning and Commercial Refrigeration; Air Conditioning → Class A Commercial Refrigeration and Class B Environmental Air Conditioning; Mechanical Contractor Refrigeration → Class A Commercial Refrigeration; Air Conditioning and Heating (Packaged Equipment) → Class B Environmental Air Conditioning; "A South Carolina heating license does not qualify in Texas." A letter of good standing confirming a passed exam, the Contractor License Application with the $115 fee, a copy of the licence and proof of insurance are required. Other states: experience credit "as determined by the executive director" (§ 1302.255(a-1)); TDLR reviews the other state's requirements and may require some or all Texas requirements including the exam (TDLR out-of-state page).

Renewal & continuing education

"A license issued under this chapter expires on the first anniversary of the date of issuance" (§ 1302.260(b)); renewal fee $65; to renew, "you must complete 8 hours of continuing education" per year "including one hour of instruction in Texas state law and rules" regulating licensee conduct, from TDLR-approved providers, completed before the licence expires (TDLR CE and renewal pages); a licence expired 90 days or less is renewed for 1.5 times the renewal fee, more than 90 days but less than 18 months for 2 times the fee, and at least 18 months but less than three years for 2 times the fee with executive-director approval (TDLR renewal page).

Home-improvement contract rule

No home-improvement contractor registration statute located. Residential construction contracts: Tex. Prop. Code § 53.255(a) — "Before a residential construction contract is executed by the owner, the original contractor shall deliver to the owner a disclosure statement described by this section"; the statutory form's headings include "KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW", "CONVEYANCE TO CONTRACTOR NOT REQUIRED", "KNOW YOUR CONTRACTOR", "GET IT IN WRITING" (a written agreement with a description of the work, the time for completion, the cost or how it is determined, and the procedure and method of payment), "GET A LIST OF SUBCONTRACTORS AND SUPPLIERS", "MONITOR THE WORK", "MONITOR PAYMENTS", "CLAIMS BY SUBCONTRACTORS AND SUPPLIERS", "OBTAIN A LIEN RELEASE AND A BILLS-PAID AFFIDAVIT", "OBTAIN TITLE INSURANCE PROTECTION" and "READ BEFORE YOU SIGN" (§ 53.255(b)); § 53.256(a) — the original contractor furnishes, before construction commences, a written list of each subcontractor and supplier by name, address and telephone number and updates it within 15 days of a change; a "residential construction contract" is one "in which the contractor agrees to construct or repair the owner's residence, including improvements appurtenant to the residence" (§ 53.001(9)); "The failure of a contractor to comply with this section does not invalidate a lien under this chapter, a contract lien, or a deed of trust" (§ 53.255(c)); latest amendment shown: Acts 2021, 87th Leg., R.S., ch. 690 (H.B. 2237), effective January 1, 2022. Tex. Bus. & Com. Code ch. 601: a consumer transaction personally solicited and agreed at a place other than the merchant's place of business for goods or services "for consideration that exceeds $25" (§ 601.002(a)(1)-(3)) may be cancelled "not later than midnight of the third business day after the date the consumer signs an agreement or offer to purchase" (§ 601.051), and the receipt or contract must carry, in 10-point bold type, "YOU, THE BUYER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION" (§ 601.052(b)(4)(B)). "A municipality may not charge a registration fee" to a Subchapter F licence holder for work performed in the municipality, but this "does not prohibit a municipality from charging a building permit fee" (§ 1302.304; TDLR FAQ: effective September 1, 2021).