Home Improvement Licensing Requirements

A Home Improvement license is required for remodeling projects in several counties, when the cost is $3,000 to $24,999. Consumers prefer to hire licensed professionals, especially when it comes to home remodeling. If you want to be known as a state licensed, insured and bonded contractor, the Home Improvement license is a good start (always list license ID number in advertisements).

Counties who have adopted the Home Improvement law pursuant T.C.A. 62-6-516 (formerly 62-37-126), are currently: Bradley, Davidson, Haywood, Hamilton, Knox, Marion, Robertson, Rutherford, and Shelby; and required for projects over $3,000 to less than $25,000. Note: A license is required regardless of whether a permit is needed.

Other Licensing Information

• Insurance Information [pdf]
• HI Rules and Regulations [pdf]
• HI Law [pdf]
• Law, Rules and Regulations - Updates
  • Roofing Services Contracts and Insurance Payment Requirements (Effective July 1, 2012)
  • Theft/Felony Law - Failure to Refund Money
  • Fraud - Theft Law Amended
• Secretary of State - Registration of Corporations/LLC
• Business Tax Licenses for Local Government
• Forms and Downloads (Resource for all Application Forms)

Summary - Definition of Home Improvement

The Home Improvement license is required by law to perform remodeling to existing residential homes, where the cost is more than $3,000 to less than $25,000 ($25,000 and up require a "Contractor's" license).  The total contract or cost includes materials and labor. It is required to repair, replace, remodel, alter, conversion, modernization, improvement, or addition to any land or building, such as,  driveways, swimming pools, porches, garages, landscaping, fences, fall-out shelters, roofing, painting and other improvements adjacent to the dwelling (see T.C.A. 62-6-501 for a complete definition in the law). Valuable information on *lead abatement below is provided below.

Home improvement does not cover electrical, plumbing or *HVAC.  You must check with the "Local Government" jurisdiction for their requirements, permits and inspections. This may include obtaining the State's LLE (Limited Licensed Electrician)or LLP (Limited Licensed Plumber) license; and there is not a state *HVAC license for small projects less than $25,000. The contractor's license is required for these classifications for projects $25,000 or more (includes materials, labor costs, and profit).

*HVAC contractors may be regulated at the local level and if not, the Home Improvement license will be required in order to perform HVAC. (See T.C.A. 62-6-503)

Note: A license is required regardless of whether a permit is needed!