By Priya Raman · Updated October 5, 2026 · 6 min read
Short answer
In Texas, air conditioning and refrigeration (ACR) contractors are regulated by TDLR, which issues their licenses. A Class A ACR license (TACLA) has no size limit and covers chillers of any capacity. A Class B license (TACLB) is limited to cooling systems of 25 tons or less and heating systems up to 1.5 million BTU per hour. The license belongs to a person, and the company works under that person's license.
Texas licenses air conditioning and refrigeration contractors through the Texas Department of Licensing and Regulation (TDLR). There are two contractor classes. A Class A ACR license (TACLA) has no limit on system size. A Class B ACR license (TACLB) is limited to cooling systems of 25 tons or less and heating systems at or below 1.5 million BTU per hour. For chillers and larger commercial equipment, the Class A HVAC/ACR license is the one that matters. This article is general information, not legal advice; check the current TDLR pages before making decisions.
Who needs an ACR contractor license in Texas?
Anyone who offers or performs air conditioning, commercial refrigeration or process cooling work for the public in Texas generally needs to work under a TDLR contractor license, with limited exceptions listed by TDLR. The requirement covers more than doing the work: TDLR rules also restrict advertising and offering such services without a license, and they require the license number to appear in advertising. That is why companies entering the market focus first on securing a license holder.
What is the difference between Class A and Class B?
| Feature | Class A (TACLA) | Class B (TACLB) |
|---|---|---|
| Cooling capacity | No limit | Up to 25 tons |
| Heating capacity | No limit | Up to 1.5 million BTU/h |
| Typical equipment | Chillers, large rooftop units, central plants, industrial refrigeration | Small commercial and residential systems |
| Liability insurance (TDLR minimums) | $300,000 per occurrence, $600,000 aggregate, $300,000 products and completed operations | $100,000 per occurrence, $200,000 aggregate |
| Fit for industrial chillers | Yes | Only if within the limits |
Insurance minimums come from TDLR’s published table. Confirm the current numbers on the TDLR page before you buy coverage.
What are the endorsements?
On top of the class, a license can carry endorsements for specific kinds of work. TDLR lists them on its license pages, and the ones most relevant to chillers and compressors are:
- Environmental air conditioning for comfort cooling and heating systems.
- Commercial refrigeration for walk-in coolers, supermarket racks and similar systems.
- Process cooling or heating for industrial processes.
A holder who wants to work on data center cooling plants or food-plant refrigeration should check which endorsement the work falls under. TDLR’s page describes the scope of each endorsement; read it before assuming a license covers a job.
Does the license belong to the person or the company?
The license is issued to an individual. A company works under the license of a qualified person who is connected to it. Texas rules expect that person to be genuinely responsible for the work, not simply a name on paper. If the license holder leaves, the company must notify TDLR within a short period, reported as 30 days, and it cannot keep offering ACR work without a qualified holder. For a company that plans to buy a business, keeping the license holder is one of the main points in the deal; see how to value an HVAC business.
What about technicians and apprentices?
A technician does not need a contractor license to work under a contractor’s license, but TDLR has a technician certification and registration system, and experience gained under a Texas contractor counts toward the contractor license. See how to get a Texas Class A ACR license for the path and how to become a chiller technician in Texas for the technician side.
What does the license mean for advertising?
TDLR rules (16 Texas Administrative Code, Chapter 75) require the license number in advertising, including websites, and impose penalties for offering ACR work without a license or for advertising without a number. TDLR also takes complaints from customers and competitors. That is why a company without a license can talk about its history, its people and general technical topics, but cannot promote services to the Texas public.
How is the license renewed?
Licenses are issued for one year and must be renewed, with continuing education required for renewal. Insurance certificates must stay on file with TDLR. Rules and fees change, so check the current TDLR requirements.
How do you decide which license to pursue?
The right class depends on the work you expect to do and the size of the equipment.
- List your target equipment. Residential split systems, rooftop units, large chillers and industrial refrigeration all fall in different places.
- Check the tonnage limits. Read TACLA vs TACLB for how the limit is applied in practice.
- Check endorsements. Some specialties need an endorsement; see Texas ACR endorsements.
- Understand the path. How to get a Class A license walks through the steps and common mistakes.
- Think about the business. Insurance and entity records follow the license; see insurance requirements.
If you are not sure which class applies to a specific job, ask TDLR directly through tdlr.texas.gov rather than guessing.
Frequently asked questions
Can a Class B license holder work on a 40-ton chiller?
No. Class B is limited to cooling systems of 25 tons or less. A chiller above that size falls under Class A.
Does an out-of-state HVAC license work in Texas?
Texas does not automatically accept out-of-state licenses. TDLR has a page for out-of-state applicants and may allow some experience or exam credit. Check the current rules.
What does TACLA stand for?
It is the license-number prefix TDLR uses for a Class A ACR contractor license. TACLB is the Class B prefix.
We are planning to enter the Central Texas market and are looking for a TACLA Class A HVAC/ACR license holder to join the team. If that sounds like you, see our open positions.
