In Texas, there are two distinct types of ACR (Air Conditioning and Refrigeration) licenses — one for technicians doing the field work, and one for the business or contractor responsible for the job. Most people in the industry need to understand both, because the line between them determines whether you can legally operate your own HVAC business.
The Core Difference
| Individual License | Contractor License | |
|---|---|---|
| Perform HVAC installations and repairs | ✓ | ✓ |
| Work under a licensed contractor | ✓ | ✓ |
| Pull permits | ✗ | ✓ |
| Enter contracts directly with customers | ✗ | ✓ |
| Operate your own HVAC business | ✗ | ✓ |
| Be the responsible party on a job | ✗ | ✓ |
| CE required | 8 hrs/yr | 8 hrs/yr |
Both licenses come in Class A (unrestricted) and Class B (restricted to smaller systems) variants. The class determines what equipment you can work on — the license type determines your legal authority in the business relationship.
The Individual (Technician) License
The Individual license — sometimes called the Journeyman license in common usage — is for HVAC technicians who perform hands-on work. With this license you can legally install, maintain, and repair air conditioning and refrigeration systems in Texas.
What you can do:
- Install, service, and repair HVAC and refrigeration systems
- Work on residential and commercial jobs (within your class limits)
- Supervise apprentice registrants on the job site
What you cannot do:
- Pull permits as the responsible party
- Enter into HVAC service contracts with customers under your own name
- Operate an HVAC business (even as a sole proprietor)
An Individual license holder working on their own is still required to have their work performed under a Contractor license holder. In practice, this means most Individual license holders are employees or subcontractors of an established HVAC company.
The Contractor License
The Contractor license is required for anyone who operates an HVAC business in Texas — including sole proprietors. If you take jobs under your own name, submit bids to customers, or pull permits as the responsible party, you need a Contractor license.
What the Contractor license adds:
- Authority to apply for and pull permits
- Authority to enter service and installation contracts with customers
- Legal responsibility for the work performed under your license number
The Contractor license is what customers, inspectors, and TDLR rely on when holding your business accountable. It’s also what your TACL number is tied to (more on that below).
Important: Holding a Contractor license does not automatically mean you can perform field work. Many business owners hold both an Individual license (to legally perform hands-on work themselves) and a Contractor license (to run the business). If you only have a Contractor license and plan to do your own installations, check with TDLR on current requirements — the rules around what field work a Contractor-only license holder can perform have nuance.
Do You Need Both?
If you work for an employer: You only need an Individual license. Your employer’s Contractor license covers the business side — your Individual license covers your personal authorization to perform the work.
If you run your own HVAC business: You almost certainly need both. The Contractor license covers the business entity. If you also do your own field work (not just manage others), you’ll want an Individual license too.
If you’re starting out: Begin with the Individual license. Once you have experience and are ready to go out on your own, add the Contractor license.
How to Get a Contractor License
To get a Texas ACR Contractor license, TDLR generally requires:
- Hold a current Individual ACR license — you cannot get a Contractor license without first being a licensed technician
- Meet the experience requirements — additional years working as a licensed individual (verify current TDLR requirements, as these can be updated)
- Pass the Contractor exam — covers business law, contracts, and licensing requirements in addition to technical content
- Carry liability insurance — TDLR requires proof of general liability insurance for Contractor license applicants
- Pay the Contractor license fee
The Contractor exam is separate from and in addition to the Individual exam. Most applicants who pass on the first try have studied Texas business law and the Occupations Code requirements specific to HVAC contracting.
What Is a TACL Number?
If you’ve seen HVAC company license numbers that start with “TACL,” that’s the Contractor license number format — it stands for Texas Air Conditioning and Refrigeration Contractor License. Every licensed HVAC contractor in Texas has a TACL number. Individual license holders have a different license number format.
When customers ask to see your license, your TACL number is what they’re looking for — it confirms you’re authorized to operate as a contractor.
CE Requirements
Both license types require 8 hours of TDLR-approved CE every year, including 1 hour of HVAC Laws & Rules and 1 hour of HVAC Codes. The requirement is the same regardless of whether you hold an Individual, Contractor, or both.