HVAC in Texas is licensed under the Air Conditioning and Refrigeration Contractor License Law (Occupations Code Chapter 1302). Section 1302.251 bars anyone from engaging in air conditioning and refrigeration contracting without the license, and Section 1302.252 goes further: a company must employ, full-time in each permanent office, a license holder whose license is assigned to that company — and if it does not, it 'may not collect a fee or otherwise enforce the contract.'
The license has two axes. Class B covers systems up to 25 tons of cooling and 1.5 million BTU/hour of heating; Class A covers any size. On top of that sits at least one endorsement — environmental air conditioning, or commercial refrigeration and process cooling or heating — and you may not work in a type your license is not endorsed for.
Insurance scales with class: Class A carries $300,000 per occurrence / $600,000 aggregate / $300,000 products and completed operations; Class B carries $100,000 / $200,000 / $100,000. The technicians below the licensee register too — a $20 annual registration, no exam, minimum age 16.
The state sets the license floor; the county or city permit office controls filing, inspections, and local rules wherever the job site sits.
A state ACR license is valid statewide and, under § 1302.251(b), removes any need for a municipal HVAC license. Cities keep mechanical permits, inspections and consistent local standards (§ 1302.303), and must report enforcement of those ordinances to TDLR within 10 days. Section 1302.304, added in 2021, bars a city from charging a state licensee a registration fee — building permit fees excepted. Work performed by someone exempt from Chapter 1302 is still subject to every municipal permit and inspection requirement (§ 1302.052).
The local offices section below names the exact permit desk for every Texas county on file.
Each row names the issuing authority, cost, timeline, citation, and status behind the requirement — verified against the official source.
Published fees from the issuing authorities, as of September 2026. Local permit fees vary by project and jurisdiction — the basis is stated where a flat number does not exist.
Under § 1302.252(b), a company without a licensed holder employed full-time at the office when the contract is signed and when the work is performed may not collect a fee or enforce the contract at all.
The 48-month experience requirement drops by 24 months for a four-year degree in air conditioning, refrigeration or mechanical engineering, 12 months for a two-year degree or program, and six months for a one-year certification — § 1302.255(c).
Moving from Class B to Class A triples the required per-occurrence limit from $100,000 to $300,000. Budget the premium change before the exam.
A practical sequence for a new HVAC contractor in Texas. Actual agency processing times are noted in the ledger above.
Each item names the issuing authority, cycle, and citation.
Statutory consequences with their citations — not estimates, not “commonly cited” guesses.
Knowingly engaging in air conditioning and refrigeration contracting without a license — or doing maintenance work without a contractor license, technician registration or certification — is a criminal offense, and TDLR's matrix puts it in the top enforcement band.
A company that lacks a full-time assigned license holder when the contract is signed and when the work is done cannot collect a fee or enforce the contract.
Failure to maintain the required insurance is a Class C violation in TDLR's ACR penalty matrix, the same band as unlicensed contracting.
Inside city limits, the city office listed here issues the permit; the county office serves unincorporated areas. Every office links to its official page.
Every fact in this file was checked against these official sources on September 2026.
Pending verification: PSI examination fee for the ACR contractor exam — TDLR refers applicants to the Candidate Information Bulletin instead of publishing an amount · ACR technician certification (as distinct from registration) fee and continuing education hours
General information, not legal advice. Always confirm requirements, deadlines, and forms with the issuing authority before filing or contracting.
Store licenses, permits, policies, and renewal dates in one place.