Guide
TDLR licensing and permits for Texas HVAC work
Updated
Texas is one of the states where the licensing question has a clear answer, which makes checking it a two minute job that removes most of your risk.
The license
The Texas Department of Licensing and Regulation says that "contractors who install, repair, or maintain systems related to air conditioning, refrigeration, or heating must have a TDLR license". It adds that "ACR companies must employ an ACR contractor in each permanent location" (tdlr.texas.gov).
Licenses carry endorsements. The one that matters for your house is environmental air conditioning: treating air for temperature, humidity, cleanliness, ventilation and circulation for human comfort.
Class A and Class B
| Class | What it allows |
|---|---|
| Class A | Environmental air conditioning of any size or capacity |
| Class B | Systems up to 25 tons cooling capacity, or 1.5 million Btu per hour output heating capacity |
For a normal single family home, a Class B contractor is amply licensed. The distinction matters more for large homes, multiple systems or small commercial work.
There is a narrow exemption in the rules for portable or self-contained ductless air conditioning products with a cooling capacity of three tons or less. That is why some window and portable unit work sits outside the license.
The municipal registration rule
This is a genuine and under-reported change. TDLR states that "beginning September 1, 2021, Occupations Code Section 1302.304 prohibits any municipality from charging registration fees to TDLR-licensed air conditioning and refrigeration contractors".
It adds that the section "does not, however, prevent municipalities from collecting building permit fees" (TDLR ACR FAQs). So a city cannot charge your contractor a registration fee for holding a state license. But the building permit for your changeout is still a real fee that belongs on your quote as a line item.
Your checklist before anyone starts
- Get the TDLR license number on the written proposal, not just a claim of being licensed, and confirm the class and endorsement cover your job.
- Confirm who pulls the building permit. It should be the contractor. Being asked to pull it yourself shifts liability onto you.
- Get the permit fee itemized, and ask whether the price includes the inspection and any re-inspection.
- Ask about EPA Section 608 certification for whoever will actually open the refrigerant circuit (epa.gov).
- Get insurance confirmation in writing, and keep the proposal, the permit and the final inspection record together for when you sell the house.
If the sale happens at your home, the FTC Cooling-Off Rule generally gives you until midnight of the third business day to cancel (consumer.ftc.gov). It covers sales of $25 or more, for a full refund. A contractor who reacts badly to you taking the paperwork away has told you something useful.