By Priya Raman · Updated October 4, 2026 · 7 min read
Short answer
A Texas ACR contractor license is issued in a class (A or B) and carries an endorsement that defines the kind of work it covers. TDLR lists environmental air conditioning, commercial refrigeration with process cooling and heating, and a combined endorsement for both. For chillers, cold storage and industrial cooling, the commercial refrigeration and process cooling endorsement is the one to look for.
Texas air conditioning and refrigeration (ACR) contractor licenses are issued by the Texas Department of Licensing and Regulation (TDLR) in two classes, A and B, and each license carries an endorsement that describes the type of work the holder may do. TDLR’s published endorsement codes are E for environmental air conditioning, R for commercial refrigeration and process cooling and heating, and C for a combined endorsement covering both. The class sets the size of the system; the endorsement sets the kind of system. This article is general information, not legal advice. Check the current TDLR pages before you rely on any detail.
What is an ACR endorsement in Texas?
An endorsement is the scope label printed on a contractor license. Two licenses can both be Class A HVAC/ACR licenses and still cover different work, because one may carry only the environmental air conditioning endorsement while the other carries commercial refrigeration. The class answers “how big?” (Class A has no size limit; Class B is limited to cooling systems of 25 tons or less and heating systems of 1.5 million BTU per hour or less). The endorsement answers “what kind?”
This matters in hiring and in buying a business. A company that wants to service industrial chillers or ammonia refrigeration plants cannot assume that any license holder is suited to the job. The scope of the license should match the scope of the work.
For the class difference, see Texas ACR license types: Class A vs Class B.
What are the three endorsement types?
| Endorsement | TDLR code | General scope | Typical equipment |
|---|---|---|---|
| Environmental air conditioning | E | Comfort cooling and heating of occupied spaces | Rooftop units, split systems, air handlers, building chilled-water systems for comfort |
| Commercial refrigeration and process cooling and heating | R | Refrigeration and process systems | Walk-in coolers, supermarket racks, cold storage, process chillers, industrial refrigeration |
| Combined | C | Both of the above | Mixed portfolios of comfort and refrigeration work |
The table is a simplified summary. TDLR’s own pages and the Texas Occupations Code define the exact language, including what counts as “environmental air conditioning” and what falls under “commercial refrigeration” or “process cooling.” Always read the definition on the TDLR page rather than relying on a summary.
What does the environmental air conditioning endorsement cover?
Environmental air conditioning is, in plain terms, comfort conditioning: systems that heat, cool, ventilate or humidify spaces where people live or work. That includes everything from a residential split system to a large rooftop unit on a commercial building. See RTU basics and the A2L transition for the equipment type that dominates this category.
A chiller that serves the air handlers of an office tower or hospital is often discussed in this category because its purpose is comfort cooling. Still, there is a technical question about where comfort cooling ends and process or refrigeration work begins, for example in a hospital where the same plant serves both patient rooms and a laboratory. When the answer is not obvious, check the current TDLR definition or ask TDLR directly.
What does the commercial refrigeration and process cooling endorsement cover?
The R endorsement is the one that most directly relates to compressors, cold rooms and industrial cooling. TDLR groups commercial refrigeration with process cooling and heating, which in practice means systems whose purpose is to hold a product or a process at a controlled temperature rather than to condition a room. Examples include:
- walk-in coolers and freezers in restaurants, groceries and distribution centers;
- multiplex rack systems and cold storage warehouses;
- process chillers for food and beverage plants, plastics, and manufacturing, including glycol chillers;
- industrial refrigeration, including ammonia systems, subject to the additional safety rules that apply to those plants.
Because refrigeration compressors are the heart of these systems, a technician working on them also needs refrigerant handling knowledge. The federal rules on refrigerants, such as EPA Section 608 certification, are separate from the Texas license. Both can apply to the same job. For the compressor types you will meet in this field, see the refrigeration compressor types guide.
What is the combined endorsement?
The combined endorsement (code C on TDLR’s out-of-state applicant page) covers both environmental air conditioning and commercial refrigeration/process cooling. For a company that wants to serve a broad mix of buildings and industrial customers, a license holder with the combined endorsement is the most flexible. It also tends to be the more demanding route, because the exams and experience requirements are broader. Check the current TDLR application and exam information for the details.
How do you get each endorsement?
The path has several parts, and the specifics change, so treat this as an outline and confirm on the TDLR site:
- Experience. TDLR’s contractor application describes a practical-experience requirement gained under a Texas ACR contractor or an equivalent. The commonly cited figure is 48 months of experience within the preceding 72 months for a contractor license. Check the current rule.
- Application and fee. The application is filed with TDLR. The fee shown on the contractor page was $115 at the time of writing; it may change.
- Exam. The contractor exam is administered by a third-party testing provider. The content depends on the license class and endorsement.
- Insurance and annual renewal. The licensee must file proof of insurance and renew yearly with continuing education.
The full process is described in how to get a Texas Class A ACR license.
For people who are not yet contractors, the technician route is a separate topic; see how to become a chiller technician in Texas.
How do you check which endorsement a license holder has?
TDLR runs a public license search. You can look up an individual or a company, see the license type, class, endorsement, status and expiration date, and view enforcement history that TDLR has published. Do this before you sign a contract with, hire, or buy a company from a license holder. The result should confirm that the license is active and that the endorsement matches the work you expect the company to do.
What happens if the work does not match the endorsement?
Doing work outside the scope of a license is treated by TDLR as a violation. The penalty matrix for ACR contractors groups violations into classes with ranges that start at several hundred dollars and rise to several thousand dollars, with suspension or revocation possible for serious or repeated cases. The matrix was on the Texas Commission’s agenda in 2026, so the current figures should be checked on TDLR’s penalties and sanctions page. See TDLR inspections and complaints for how enforcement usually begins.
Frequently asked questions
Does a Class A license automatically cover refrigeration work?
No. The class sets the size limit, not the kind of work. The endorsement on the license determines whether it covers environmental air conditioning, commercial refrigeration and process cooling, or both. Confirm the endorsement on the TDLR license search.
Can a holder add an endorsement later?
TDLR has a process for adding scope to an existing license, usually involving the relevant exam and documentation of experience. The details change, so check the current TDLR contractor pages before planning around it.
Is process cooling a separate endorsement?
On TDLR’s own listing, process cooling and heating is grouped with commercial refrigeration under the R code. Some third-party guides describe it as a separate item, so rely on the TDLR wording.
We are SpecServis engineers in Ukraine planning to enter the Central Texas market, and we are looking for technicians, partners and a company with a qualified Class A HVAC/ACR license holder to join forces with. If that is you, see our open positions or start a conversation about partnership.
