Exemptions From The License Requirement

Exemptions From The License Requirement

Exemptions from the contractor's license requirement is outlined in the laws, rules and regulations, and applies to individual use, non-profit organizations, Department of Transportation's special let highway projects and federal projects. For example

• A homeowner of the residential property may perform work themselves ( individual use), without a contractor's license, as long as the residential structure is not open to the public; or for sale, lease or rent).
  • Allowed one homeowner permit once every two (2) years.
  • Anyone hired by the property owner is required to be licensed if they perform $25,000 or more of the work, as these contractors would be considered prime contractors since they are contracting directly with the owner. 
• Members of a church may build a single residence for a preacher without a contractor's license; or they may construct a storage building for their individual use, as long as this structure is not open to the public, for sale, lease or rent.
  • Members of a church would not be allowed to construct a church building, when the total cost is $25,000 or more, since the building is open to the public.
• A non-profit organization with a 501(c) federal exemption, may build single residences without a contractor's license.
  • They must follow local requirements for permits and inspections.
• Federal Projects - A state license is not required for 100% federal projects (all federally funded and on federal land), unless required by the federal government awarding authority. See AG opinion 92-39 . 
   

To review all exemptions, see T.C.A. § 62-6-102, 103 and Rule 0680-1-.22, 27.