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Water Heater Replacement Requirements in Minnesota

Minnesota water heater replacement touches three credential families: the plumbing contractor license with a master plumber responsible and the $25,000 bond for the water side (§ 326B.46), the Board of Electricity credential for an electric heater's connection, and the mechanical layer — which has NO state license at all, only the $25,000 bond filed with DLI ($100 fee, two-year validity). A single-skill contractor without a residential license registers under § 326B.701 instead.

Verified 2026-10-055 sourced requirements5 credential linksIndexation gate: passed

01 The requirements, sourced

  • Plumbing contractor license required to offer plumbing work; responsible individual must be a master plumber — Minn. Stat. § 326B.46 verbatim: subd. 1(c) — 'no person shall perform or offer to perform plumbing work with or without compensation unless the person obtains a contractor's license. A contractor's license does not of itself qualify its holder to perform the plumbing work authorized by holding a master, journeyworker, restricted master, or restricted journeyworker license'; subd. 1(b) — the business operates only while 'a licensed master plumber, or in cities and towns with a population of fewer than 5,000 …, a restricted master plumber … is in charge of the plumbing work'; subd. 1b(a) — 'A plumbing contractor's responsible individual must be a master plumber', one contractor only, 15 business days notice of departure and 60 days to replace or the license terminates voluntarily. DLI: 'Businesses that contract to provide plumbing services must have a plumbing contractor license. Licensed plumbing contractors carry a surety bond and liability insurance.' Exemptions (subd. 1a): own occupied residence; employer maintenance crews with a certificate of responsible individual (2-year filing with fee); licensed plumbers employed by a contractor; sewer/water-service installers with bond+insurance; specified chemical-dispensing technicians; well contractors under §§ 103I.525/103I.531. S-MN-MCL-326B-46
  • Plumbing work requires a surety bond of at least $25,000 — Minn. Stat. § 326B.46 subd. 2(b) verbatim: 'Each person who performs or offers to perform plumbing work within the state shall give and maintain bond to the state in the penal sum of at least $25,000 for (1) all plumbing work entered into within the state or (2) all plumbing work and subsurface sewage treatment work entered into within the state. The bond must comply with section 326B.0921.' The bond (with insurance) is also what exempts sewer/water-service-only installers from the contractor license (subd. 1a(d)). S-MN-MCL-326B-46
  • No state license for mechanical contractors or their workers (verified absence) — and they are exempt from the residential license — Minnesota has NO state mechanical contractor license: DLI verbatim 'there is no state license required for mechanical contractors' and 'Minnesota also has no state license requirement for individual employees of mechanical contractors. However, cities may require licensure or a competency card for workers performing mechanical work' (read 2026-10-05). Minn. Stat. § 326B.805 subd. 6(6) separately exempts 'a mechanical contractor' from the RESIDENTIAL contractor license while the bond regime applies. The credential surface for HVAC/fuel-gas work is the $25,000 bond (REQ-MN-MECHANICAL-BOND-001) plus local requirements. S-MN-DLI-MECHANICAL-BOND
  • Mechanical contractors: $25,000 bond filed with DLI ($100 fee, two-year validity) — instead of a license — DLI verbatim: 'While there is no state license required for mechanical contractors, businesses must file a $25,000 mechanical contractor bond with DLI in order to contract to perform gas, heating, ventilation, cooling, air conditioning, fuel burning or refrigeration work. The bond must be on the form approved by DLI and written by a surety company licensed to do business in Minnesota … The fee for filing a bond with DLI is $100 and the filing is valid for two years. The renewal fee for a bond filing is $100.' 'In addition to filing a bond with DLI, mechanical contractors must comply with local licensing requirements' and cities may require individual comp cards for workers (not issued by DLI). Code: Minnesota Mechanical Code ch. 1346 (2012 International Mechanical & Fuel Gas Codes + amendments). S-MN-DLI-MECHANICAL-BOND
  • Construction contractor registration required for single-skill residential work and ALL commercial work — Minn. Stat. § 326B.701 subd. 2(a) verbatim: 'any person who provides or performs building construction or improvement services in the state of Minnesota must register with the commissioner as provided in this section before providing or performing building construction or improvement services. The requirements for registration under this section are not a substitute for, and do not relieve a person from complying with, any other law requiring that the person be licensed, registered, or certified.' DLI: the program is 'for those who provide one specialty skill for residential projects and for all commercial projects, if they do not hold a residential contractor's license' — and 'If a license is required, do not register.' Exemptions (subd. 2(b)): current ch. 299M/326B credentials, a bond under § 326B.197 or § 326B.46, employees, architects/engineers, school districts/technical colleges, volunteers, and § 326B.805 subd. 6(4) persons. Registration expires December 31 of each odd-numbered year (renewals from October 1); each day unregistered is a separate violation (subd. 5(c)); engaging an unregistered registrant is itself prohibited (subd. 5(b)(3)). Application contents: legal/assumed names, addresses, ownership percentages, identification numbers, WC and unemployment compliance, violations history and attestation (subd. 3(b)). No fee amount is published on the statute or DLI page — NOT_VERIFIED. S-MN-MCL-326B-701

02 Which credentials this project can touch

CredentialRelationRuleSource
Plumbing Contractor (business license)may_requireMN-PLUMBING-LICENSES-MN-MCL-326B-46
Mechanical Contractor Bond filing (NOT a license)may_requireMN-MECHANICAL-BONDS-MN-DLI-MECHANICAL-BOND
Electrical Contractor (business license)component_basisMN-ELECTRICAL-LICENSES-MN-DLI-ELECTRICAL
Construction Contractor RegistrationalternativeMN-REGISTRATIONS-MN-MCL-326B-701
Certificate of Exemption (≤ $15,000 gross receipts)alternativeMN-15K-EXEMPTIONS-MN-MCL-326B-805

03 Deterministic rules applied

  • MN-PLUMBING-LICENSE
  • MN-PLUMBING-BOND
  • MN-MECHANICAL-NO-LICENSE
  • MN-MECHANICAL-BOND
  • MN-REGISTRATION

04 What it costs

FeeAmountSource
Qualifying-person application and examination fee (commissioner-administered exam)$50S-MN-MCL-326B-092
Residential contractor business license — base license fee (BC / CR / RR)$180S-MN-DLI-RBC-LICENSE
Residential roofer license — license fee (NO Contractor Recovery Fund surcharge)$180S-MN-DLI-ROOFER
Contractor Recovery Fund fee — gross annual receipts under $1,000,000$320S-MN-MCL-326B-89
Contractor Recovery Fund fee — gross annual receipts $1,000,000 to $5,000,000$420S-MN-MCL-326B-89
Contractor Recovery Fund fee — gross annual receipts over $5,000,000$520S-MN-MCL-326B-89
Residential contractor license renewal — gross annual receipts under $1,000,000$505S-MN-DLI-RENEWALS
Residential contractor license renewal — gross annual receipts $1,000,000 to $5,000,000$605S-MN-DLI-RENEWALS
Residential contractor license renewal — gross annual receipts over $5,000,000$705S-MN-DLI-RENEWALS
Late renewal fee (completed renewal not received by expiration)$90S-MN-DLI-RENEWALS
Continuing education fee (added to renewals of licenses with a CE requirement)$5S-MN-MCL-326B-092
Board fee — 1-year license (§§ 326B.31–59 electrical/plumbing/water conditioning; §§ 326B.90–925 high pressure piping)$4S-MN-MCL-326B-092
Board fee — 2-year license (§§ 326B.31–59 electrical/plumbing/water conditioning; §§ 326B.90–925 high pressure piping)$8S-MN-MCL-326B-092
Mechanical contractor bond filing fee (initial filing and each renewal)$100S-MN-DLI-MECHANICAL-BOND

Municipal permit and licensing fees are LOCAL_AUTHORITY_REQUIRED and are not published here.