Texas HVAC Contractor License: How to Apply Step by Step

A TDLR ACR contractor license is the highest level of HVAC credentialing in Texas. It authorizes you to operate an HVAC business, take on projects independently, pull permits, and supervise technicians. Every ACR company in Texas must employ a licensed contractor in each permanent business location.

TDLR issues two classes of contractor license under the Air Conditioning and Refrigeration Contractor License Law (Texas Occupations Code Chapter 1302):

• Class A: Unlimited — work on any size unit
• Class B: Limited to residential and light commercial systems

Both require documented experience, passing a proctored exam, and maintaining general liability insurance. Both require 8 hours of continuing education annually to renew.

The contractor license represents a significant career milestone. With Texas's growing population and extreme climate, licensed HVAC contractors are in high demand — and the experience and exam requirements create a meaningful barrier to entry that supports strong earning potential.

Choosing between Class A and Class B depends on the type of work you plan to do:

Class A Contractor (Unlimited)

• Work on any size unit — no tonnage or BTU restrictions
• Covers residential, commercial, and industrial systems
• Required for large commercial projects (chillers, rooftop units over 25 tons)
• Same application fee and renewal fee as Class B

Class B Contractor (Limited)

• Cooling: 25 tons and under
• Heating: 1.5 million BTU/hour and under
• Covers most residential and light commercial work
• Sufficient for contractors focused on residential installations and repairs

Both classes have the same experience requirements, application fee ($115), renewal fee ($65), and CE requirement (8 hours). The exams cover the same core material, but the Class A exam also covers larger commercial systems.

Our recommendation: If you plan to do any commercial work, go for Class A. The additional exam content is manageable, and the unrestricted license gives you maximum flexibility. You can always start with Class B and upgrade later, but taking the Class A exam while the material is fresh is more efficient.

TDLR offers two paths to the contractor license, both requiring substantial documented experience:

Standard Path

• 48 months of practical ACR experience
• Must be performed under the supervision of a licensed ACR contractor
• Must be within the past 72 months (6 years)
• Experience must be verifiable — your supervising contractor must confirm your work

Certified Technician Path

• Hold a TDLR certified technician designation for at least 12 months
• 36 months of practical experience under a licensed contractor
• Must be within the past 48 months (4 years)

In both cases, the experience must be practical ACR work — not administrative, sales, or tangentially related work. TDLR may verify your experience claims through your supervising contractor.

The experience requirement is the most time-consuming part of the process. Start tracking your hours early and maintain documentation of the work you perform, the contractor you work under, and the dates of employment.

Here is the complete process for applying for a Texas HVAC contractor license:

1. Verify your experience. Confirm you have 48 months (standard path) or 36 months (certified technician path) of documented ACR experience under a licensed contractor.
2. Prepare your documentation. Gather employment records, dates of experience, and contact information for your supervising licensed contractor(s).
3. Submit your application to TDLR. Apply online through TDLR's website. Pay the $115 application fee.
4. Receive exam authorization. Once TDLR verifies your experience, they will authorize you to take the contractor exam.
5. Schedule and pass the exam. Contact the TDLR-approved testing provider to schedule your exam (Class A or Class B). The exam is proctored and taken in person at a testing center.
6. Obtain general liability insurance. Secure the required insurance coverage before TDLR will issue your license.
7. Receive your contractor license. Once your exam results and insurance documentation are confirmed, TDLR issues your license.

The timeline from application to license depends on how quickly TDLR processes your application and how soon you pass the exam. Budget 4-8 weeks for the administrative process.

The TDLR ACR contractor exam is a proctored, multiple-choice exam administered at an approved testing center. Here is what it covers:

Exam Topics

• Texas ACR Law: Occupations Code Chapter 1302 — licensing requirements, scope of work, contractor responsibilities, and enforcement
• Texas Administrative Rules: 16 TAC Chapter 75 — detailed rules implementing Chapter 1302
• Mechanical Codes: International Mechanical Code (IMC), Uniform Mechanical Code (UMC), and related codes adopted by TDLR (currently 2015 editions, effective January 1, 2018)
• Refrigerant Handling: EPA regulations, refrigerant types, recovery procedures, and safety
• System Design: Load calculations, ductwork design, equipment sizing, and installation practices

Exam Preparation

Study the current mechanical codes, Texas Occupations Code Chapter 1302, and 16 TAC Chapter 75. Several third-party exam prep courses are available. Focus on understanding the code requirements rather than memorizing specific sections — the exam tests application of knowledge.

Unlike the electrician licensing exams (23.5% FY2025 pass rate), TDLR does not publish pass rates for ACR exams. However, the exam is rigorous and requires thorough preparation.

TDLR requires ACR contractors to maintain general liability insurance as a condition of licensure. You must have insurance in place before TDLR will issue your contractor license, and you must maintain it throughout the life of your license.

Key insurance points:

• Must be general liability insurance that covers your ACR work
• Coverage limits must meet TDLR minimums (check current requirements on the TDLR website)
• Your insurance carrier must be able to provide a certificate of insurance to TDLR
• If your insurance lapses, TDLR may suspend your contractor license
• Insurance costs vary based on your business size, scope of work, and claims history

Shop around for quotes from multiple commercial insurance providers. Many insurers specialize in trade contractor coverage and offer competitive rates for HVAC businesses. Factor insurance costs into your business plan before applying for your contractor license.

Here is a complete cost breakdown for obtaining and maintaining a Texas HVAC contractor license:

Initial Licensing Costs

• TDLR contractor application: $115
• Contractor exam fee: Varies by testing provider (typically $50-$150)
• General liability insurance: Varies ($500-$2,000+/year depending on coverage)
• Exam prep materials (optional): $50-$300

Annual Maintenance Costs

• TDLR renewal fee: $65/year
• Continuing education (8 hours): $22.95/year at OnlineTexasCE.com
• General liability insurance: Varies
• Total annual cost (excluding insurance): $87.95

Late Fee Risk

• 1-90 days late: $97.50 (50% surcharge)
• 91 days-18 months late: $130 (100% surcharge)
• 18 months-3 years late: $130, with TDLR executive director approval (mail-in request); past 3 years, reapply as a new applicant

The investment in a contractor license pays for itself quickly. Licensed HVAC contractors in Texas typically charge significantly more per hour than technicians, and the license is required to operate an independent HVAC business.

Once you have your contractor license, here is what you need to do every year to keep it active:

1. Complete 8 hours of continuing education through a TDLR-approved provider. OnlineTexasCE.com offers a TDLR-approved 8-hour course (Provider #2273) for $22.95 — self-paced, online, and with no final exam.
2. Maintain your general liability insurance. Do not let it lapse — TDLR may suspend your license.
3. Renew your license through the TDLR Online Services portal before your expiration date. Pay the $65 renewal fee. Our Texas HVAC license renewal guide walks through each portal step.
4. Keep your CE certificate for at least 1 year. We report the completion to TDLR for you, but TDLR can request your records during an inspection or investigation.

Your license expires annually on the anniversary of your issuance date. TDLR sends a reminder approximately 60 days before expiration. Do not wait — complete your CE early and renew with plenty of time to spare.

The 8-hour CE requirement covers 1 hour of Texas law and 7 hours of technical content. With the current refrigerant transition (R-410A to R-454B) and ongoing code updates, the CE is genuinely useful for staying current — not just a regulatory checkbox.

OnlineTexasCE.com: $22.95 for the full 8-hour course. TDLR-approved Provider #2273. No final exam. Complete from any device, 24/7.

Related HVAC guides: the complete Texas HVAC licensing path and TDLR ACR program guide, and the breakdown of HVAC certification costs and exams.