In Tennessee, the number that matters is $25,000: any HVAC project at or above it requires a state contractor license from the Tennessee Board for Licensing Contractors. That single threshold shapes everything — which classification you need, the two exams, and the financials you'll have to document. Here's how it all works.
Do You Need an HVAC License in Tennessee?
Yes, a state contractor license is required for HVAC work on projects valued at $25,000 or more, issued by the Tennessee Board for Licensing Contractors. This threshold applies to the total project cost, including labor and materials. For jobs below this amount, you may still need to comply with local city or county permitting and registration requirements, but a state-level contractor license is not mandatory. Always check with the local building department in your area of operation for specific rules.
Types of HVAC Licenses in Tennessee
Full Mechanical Contractor (CMC)
A Full Mechanical Contractor (CMC) classification authorizes work in a wide range of mechanical systems, including heating, ventilation, air conditioning, refrigeration, process piping, and gas piping. To qualify for this classification, applicants typically need to demonstrate at least three years of verifiable experience in the mechanical field or hold a relevant engineering degree.
Mechanical – HVAC/Refrigeration Contractor (CMC-C)
The Mechanical – HVAC/Refrigeration Contractor (CMC-C) classification is more specialized, focusing specifically on heating, ventilation, air conditioning, and refrigeration systems. Similar to the full CMC, applicants for the CMC-C classification must show proof of at least three years of verifiable experience or possess an engineering degree related to the field.
Residential Building Contractor (BC-A) and related residential classifications
BC-A is a residential building classification (it covers residential building categories), not a mechanical/HVAC classification — so HVAC contractors generally pursue the CMC or CMC-C classification above. Contractors holding a residential classification (BC-A, BC-A/r, or BC-A,b(sm)) who were licensed after January 1, 2009 must complete eight hours of Residential Continuing Education (RCE) every two years for renewal, a requirement that does not apply to the CMC or CMC-C classifications.
Tennessee HVAC License Requirements & Qualifications
To obtain a contractor license with an HVAC classification in Tennessee, you must meet state-mandated requirements for experience, financial stability, and insurance coverage.
Experience Requirements
Applicants for the CMC and CMC-C classifications must have at least three years of verifiable experience in the mechanical or HVAC field, or an equivalent engineering degree. Verifiable experience typically includes detailed descriptions of past projects, letters of reference from former employers or licensed contractors, and other documentation that proves your hands-on work and managerial capabilities in the trade.
Financial Stability
You must provide either a reviewed or an audited financial statement prepared by a Certified Public Accountant (CPA) as part of your application. This statement demonstrates your business's financial solvency and helps the board determine the monetary limit for the projects you are authorized to undertake.
Insurance Requirements
You must carry proof of general liability insurance with a minimum coverage of $500,000 per occurrence. Additionally, if your business employs one or more individuals in construction activities, you are required to have workers' compensation insurance.
Bond Requirements
A statewide contractor bond is not mandatory to obtain a license from the Tennessee Board for Licensing Contractors. However, be aware that specific project owners or local municipalities may require you to secure a performance or payment bond for individual jobs.
Business Entity Registration
Your business must be legally registered with the Tennessee Secretary of State before you can be issued a contractor license. This applies whether you are operating as a sole proprietorship, partnership, LLC, or corporation.
Step-by-Step Guide to Getting Your Tennessee HVAC License
The licensing process involves documenting your qualifications, passing two exams, and submitting a comprehensive application to the state board.
Step 1: Meet Experience & Financial Requirements
Before starting the application, gather all necessary documentation to prove your trade experience, including references and project lists. Simultaneously, engage a CPA to prepare the required reviewed or audited financial statement for your business.
Step 2: Pass Required Examinations
Business and Law Exam
This exam is administered by PSI Exams and covers topics essential for running a contracting business in Tennessee, including labor laws, project management, tax regulations, and lien laws.
Trade-Specific Exam (HVAC/Mechanical)
Also administered by PSI Exams, the trade-specific test evaluates your technical knowledge of mechanical systems, HVAC installation, service, and safety codes relevant to your chosen classification (e.g., CMC or CMC-C).
Step 3: Complete and Submit Your Application
Once you have passed both exams, you can submit your completed application to the Tennessee Board for Licensing Contractors. The application package must include your passing exam score reports, CPA-prepared financial statement, proof of insurance, references, and a non-refundable application fee of $250.
Step 4: Board Review and Approval
After submission, the board will review your application for completeness and accuracy. This process can take several weeks. If your application is approved, you will be issued a Tennessee contractor license with your requested HVAC classification and a specified monetary limit.
Tennessee HVAC License Exam Details
All state contractor exams are managed and administered by a third-party testing provider.
Exam Provider
Tennessee contracts with PSI Exams to administer all contractor licensing examinations. You must register and schedule your exams directly through the PSI website.
Exam Format and Content
Both the Business and Law exam and the various mechanical trade exams are typically open-book, multiple-choice tests. The candidate information bulletin, available on the PSI website, provides a detailed breakdown of the number of questions, time limits, and specific content areas covered on each exam.
Exam Costs
You must pay exam fees directly to the testing provider at the time of registration. The exact cost for the Business and Law exam and the HVAC trade exam is listed on the PSI Exams website.
Preparing for the Exam
A wide range of study materials, including practice tests and exam prep courses, are available from third-party providers. Because the exams are open-book, it is critical to be familiar with the approved reference materials and to use tabs to mark important sections for quick access during the test.
How Much Does an HVAC License Cost in Tennessee?
The total cost to become a licensed HVAC contractor includes state fees, exam fees, and other business expenses.
Application Fees
A non-refundable application fee of $250 must be paid to the Tennessee Board for Licensing Contractors when you submit your license application.
Exam Fees
Exam fees are paid directly to PSI Exams. You will need to budget for the separate costs of the Business and Law exam and the HVAC trade exam; the current amounts are listed on the PSI Exams website.
Renewal Fees
The biennial renewal fee for a Tennessee contractor license is $200.
Other Potential Costs
Additional costs to consider include CPA fees for preparing your financial statements, annual insurance premiums, expenses for exam preparation materials or courses, and any fees associated with registering your business with the Secretary of State.
How to Renew Your Tennessee HVAC Contractor License
Maintaining your license requires timely renewal and adherence to any applicable educational requirements.
Renewal Cycle
A Tennessee contractor license must be renewed every two years.
Renewal Fee
The renewal fee is $200, payable to the Tennessee Board for Licensing Contractors.
Continuing Education Requirements
Contractors holding residential classifications (BC-A, BC-A/r, and BC-A,b(sm)) who were licensed after January 1, 2009, are required to complete eight hours of Residential Continuing Education (RCE) every two years.
Tennessee HVAC License Reciprocity
Tennessee allows licensed contractors from several other states to waive the trade portion of the exam.
Trade Exam Waivers
Tennessee maintains trade-exam waiver agreements with several other states for contractors who hold an equivalent license in good standing for at least three consecutive years. The specific list of states changes over time — confirm the current reciprocity agreements with the Tennessee Board for Licensing Contractors before applying.
Business and Law Exam Still Required
All applicants, including those seeking reciprocity, must pass the Tennessee Business and Law exam. There are no waivers or exemptions for this requirement.
Application Process for Reciprocity
To apply via reciprocity, you must submit a standard application along with a "Verification of Licensure" form completed by the licensing board in your home state. This form confirms your license type, standing, and history.
Important HVAC-Specific Certifications
In addition to your state contractor license, federal law requires at least one specific certification for HVAC technicians.
EPA Section 608 Technician Certification
The U.S. Environmental Protection Agency (EPA) requires any technician who maintains, services, repairs, or disposes of equipment that could release refrigerants into the atmosphere to hold a Section 608 Technician Certification. Certifications are available as Type I (small appliances), Type II (high-pressure systems), Type III (low-pressure systems), or Universal.
Consequences of Unlicensed HVAC Work in Tennessee
Performing HVAC work on projects valued at $25,000 or more without the required state contractor license is a violation of Tennessee law. Penalties can include significant fines, civil penalties, and court injunctions. Furthermore, unlicensed contractors may find they are unable to enforce a contract in court to collect payment for their work.
How to Verify a Tennessee HVAC License
You can verify the status of any contractor license by using the license search tool available on the Tennessee Department of Commerce & Insurance website. This tool allows consumers and other professionals to confirm that a contractor is properly licensed, insured, and authorized to perform the work.