Texas has more licensed HVAC contractors than any other state. It also has one of the more structured licensing systems in the country — a two-tier setup that separates the technician working in the field from the contractor running the business. If you don't know which tier you're aiming for, you can spend months preparing for the wrong exam.
This guide breaks down exactly what TDLR requires, what the exams look like, what it costs, and how long the whole process takes.
How Texas Licenses HVAC Work
The Texas Department of Licensing and Regulation (TDLR) runs the Air Conditioning and Refrigeration (ACR) program. Two types of credentials fall under it:
1. Technician Registration or Certification — Required for anyone who works on HVAC/refrigeration equipment in Texas, even as an employee. You don't need to own a business to need this credential. You just need to be turning wrenches.
2. ACR Contractor License — Required if you're running an HVAC business, pulling permits, or contracting directly with customers. This is the license that comes with an exam.
Both are issued by TDLR. Neither one satisfies the other — a contractor's license does not eliminate the need to register technicians who work under you, and a technician registration does not let you operate as a contractor.
One federal credential applies on top of both: EPA Section 608 certification is required before anyone handles regulated refrigerants, regardless of state license status. If you don't have it yet, read the EPA 608 certification guide before you start the TDLR process.
Tier 1: Technician Registration
This is the entry-level credential. Anyone performing HVAC or refrigeration work in Texas — installing, maintaining, or servicing equipment — must be registered with TDLR or hold a certified technician designation.
Registered Technician
The registered technician designation is the baseline. Requirements:
- At least 18 years old
- Application fee: $20
- No experience requirement beyond working under a licensed ACR contractor
- No exam required
The registration is valid for one year. Renewal costs another $20.
There's no continuing education requirement for registered technicians. That obligation falls on the contractor, not the tech.
Certified Technician
One step above registration. The certified technician designation matters because it shortens the path to a contractor license later — if you hold it for 12 months, you only need 36 months of additional experience to qualify for the contractor exam (instead of 48).
Requirements:
- At least 18 years old
- 24 months of practical experience under a licensed ACR contractor, or completion of an accredited HVAC program
- Application fee: $50
- Renewal fee: $35
Like registration, no exam. The experience documentation is what matters here.
Tier 2: ACR Contractor License
This is the license that lets you operate an HVAC business, pull permits, and take contracts in your own name. Texas offers two classes.
Class A vs. Class B — What's the Difference
Class A:
- No restrictions on equipment size
- Required for commercial and large residential work
- Experience required: 48 months under a licensed ACR contractor within the past 72 months
- Alternative: 12 months as a certified technician plus 36 months of experience within the past 48 months
Class B:
- Restricted to systems 25 tons of cooling or less, and heating systems of 1.5 million BTU/hour or less
- Covers most residential replacement and light commercial work
- Experience required: 24 months under a licensed ACR contractor (this is the minimum commonly cited, though Class A's 48-month requirement is the standard for full contractor eligibility — confirm your specific pathway with TDLR directly)
Most techs starting a residential HVAC business go Class B first. Established commercial contractors almost always need Class A.
Both licenses also require you to choose an endorsement: Environmental Air Conditioning, Commercial Refrigeration, or Process Cooling/Heating. You can hold multiple endorsements.
Experience Documentation
TDLR doesn't take your word for it. Experience must be documented on an Experience Verification Form, completed by your supervising licensed ACR contractor — not by you.
If you've worked under multiple contractors, you'll need a form from each one. The hours need to add up to the required months of experience. TDLR reviews these carefully.
What counts as qualifying experience:
- Installing, maintaining, or repairing HVAC/refrigeration equipment
- Work performed under direct supervision of a licensed ACR contractor
- Must fall within the lookback window (72 months for Class A, 48 months for the alternative path)
What doesn't count:
- Work as an independent contractor without a license
- Work outside the HVAC/refrigeration trade
- Experience outside the lookback window
If you have military training, an HVAC degree, or a mechanical engineering background, TDLR offers alternative pathways. The process is the same — you document it and they review it.
The ACR Contractor Exam
Once TDLR approves your application, you have one year to pass the exam. Approval typically takes one to six weeks, depending on whether a criminal history review is required.
The exam is administered by PSI Exams. After TDLR approves your eligibility, PSI sends you a confirmation email with scheduling instructions. You can book at any PSI testing location in Texas or take it at a remote proctored site.
What the Exam Covers
The exam breaks down roughly as:
- Technical knowledge: 40%
- Codes and standards: 25%
- Safety practices: 20%
- Business requirements: 15%
Both Class A and Class B exams cover these categories. The difference is scope and question count.
Class A (Environmental Air):
- 120 questions
- 240 minutes
- Exam fee: $74
Class B (Environmental Air):
- 100 questions
- 180 minutes
- Exam fee: $60
Passing score is 70% for both.
You can retake the exam if you fail. TDLR allows retakes within 24-48 hours, and you can keep attempting until your application expires at the 12-month mark.
The TACCA (Texas Air Conditioning Contractors Association) offers exam prep seminars specifically for the ACR test, and there are third-party prep courses available through PSI and private providers. Given that the business and codes sections account for 40% of the exam, don't skip them in favor of only technical review.
Insurance Requirements
Before TDLR issues your contractor license, you must submit a Certificate of Insurance naming TDLR. You must maintain this coverage for the life of your license — a lapse gets your license suspended.
Class A minimums:
- General liability: $300,000 per occurrence / $600,000 aggregate
- Products/completed operations: $300,000
Class B minimums:
- General liability: $100,000 per occurrence / $200,000 aggregate
- Products/completed operations: $100,000
Texas does not require a surety bond for ACR contractors. Insurance is the only financial responsibility requirement.
If you hold both Class A and Class B licenses, a single policy covering Class A minimums satisfies both.
Municipal Permits and Local Requirements
The TDLR license is your state credential. It doesn't replace local permitting requirements, and Texas's major cities each have their own layer.
Houston: No contractor registration required at the city level, but you must pull a permit for most HVAC projects through the Houston Permitting Center. All businesses also need a Basic Business License (BBL). Houston is notably permissive compared to other major Texas cities — the state license does most of the work.
Dallas: Requires licensed contractors to register annually with the city's Building Inspection Department. You'll need proof of general liability insurance, a Texas sales tax permit, and a physical business address to register. Registration is done through the city's Contractor Portal.
San Antonio: Requires contractors to register with the city before pulling permits. Your TDLR license is the foundation — San Antonio essentially says "if the state requires it, bring proof and register with us too."
Austin: Has additional requirements in historic districts, and the city requires mechanical permits for equipment replacements. The standard TDLR license gets you in the door.
If you're working across multiple Texas cities, check each municipality's building department before taking a job. The mechanical permit requirement exists nearly everywhere, even for straight equipment replacement.
Cost Breakdown: Start to Licensed
Here's the realistic total cost for a technician going from unregistered to a Class A ACR contractor license:
| Step | Cost |
|---|---|
| Registered Technician application | $20 |
| Certified Technician application (optional, if using alternative path) | $50 |
| ACR Contractor License application fee | $115 |
| PSI exam fee (Class A) | $74 |
| PSI exam fee (Class B) | $60 |
| General liability insurance (annual, Class A — market rate) | $600–$1,800/year |
| Exam prep course (optional but recommended) | $200–$500 |
The hard costs from TDLR alone — application plus exam — run $189 for Class A or $175 for Class B. Insurance is the variable that can shift the real number significantly depending on your business size and claims history.
Realistic Timeline
This is where a lot of people underestimate the process.
If you already have 48 months of documented experience:
- Submit application → TDLR review: 1–6 weeks
- Criminal history review (if applicable): adds 2–4 weeks
- Schedule and pass PSI exam: 1–4 weeks depending on availability
- TDLR issues license after proof of insurance submitted: 1–2 weeks
Total: roughly 6–12 weeks from application submission to active license, assuming no complications.
If you're starting from scratch as a new technician:
- Register as a technician: immediate (just the $20 fee and form)
- Build 48 months of experience under a licensed contractor: 4 years minimum
- Then follow the contractor application process above
The alternative path — 12 months as a certified tech plus 36 months experience — doesn't actually save you much total time. You're still looking at 4 years before you can sit for the exam.
One thing that catches people off guard: TDLR needs your experience verified by your supervising contractor before they'll process your application. If your former employer is slow to respond or out of business, that can add weeks or months to the timeline. Collect your experience verification forms as you go, not all at once at the end.
Renewal Requirements
Technician registration: Renews annually, $20 fee. No continuing education required.
Certified technician: Renews annually, $35 fee. No continuing education required.
ACR Contractor License: Renews annually, $115 fee. Requires 8 hours of continuing education, including at least 1 hour covering Texas state law and TDLR regulations. The remaining 7 hours can be technical topics, codes updates, or safety.
CE must be completed through a TDLR-approved provider before renewal. TACCA, online providers, and several community colleges offer approved courses.
Frequently Asked Questions
Do I need a license to work as an HVAC technician in Texas?
Yes. Anyone performing air conditioning and refrigeration work in Texas must be registered with TDLR as a technician or hold a certified technician designation. The $20 registered technician application covers you to work under a licensed ACR contractor.
What's the difference between a Class A and Class B ACR license in Texas?
Class A has no equipment size restrictions. Class B is limited to systems of 25 tons of cooling or less and heating systems under 1.5 million BTU/hour. Class B covers most residential work; Class A is required for large commercial systems.
How long does it take to get an HVAC contractor license in Texas?
If you already have the required experience (48 months), the TDLR application and PSI exam process takes 6–12 weeks. Building the experience from scratch takes a minimum of 4 years.
What is the passing score for the Texas ACR contractor exam?
70%. The Class A exam has 120 questions with a 4-hour time limit. The Class B exam has 100 questions and a 3-hour time limit.
Do I need a bond for an HVAC contractor license in Texas?
No. Texas does not require a surety bond for ACR contractors. General liability insurance is required — $300,000/$600,000 for Class A, $100,000/$200,000 for Class B.
Does my Texas ACR license cover all cities?
The state license covers you statewide, but cities like Dallas, Houston, and San Antonio have additional local registration or permit requirements. Check with the building department in any city where you plan to pull permits.
Do I need EPA 608 certification in addition to my Texas license?
Yes. EPA 608 is a federal requirement that applies everywhere in the United States. You need it before handling regulated refrigerants, regardless of your state license status.
How much does it cost to renew a Texas ACR contractor license?
The renewal fee is $115 per year. You must also complete 8 hours of TDLR-approved continuing education before renewing.
The fastest way to find HVAC contractor jobs in Texas while you're building your experience hours is to search by license type and location on HVACJobs.IO. Employers in the state often list whether they sponsor the certification process or require applicants to already hold their TDLR credentials.
For salary context before you make the jump to contractor status, the Texas HVAC salary page breaks down current market rates by city and experience level.