New Jersey does not issue a home improvement license. Contractors register a Home Improvement Contractor Business with the Division of Consumer Affairs, and a new individual license is phasing in under a 2024 law.
New Jersey does not issue a "home improvement license." A business that remodels, repairs, or otherwise improves a home or non-commercial property must instead register as a Home Improvement Contractor Business with the New Jersey Division of Consumer Affairs under the Contractors' Business Registration Act, N.J.S.A. 56:8-136 et seq. A separate 2024 law is now phasing in an actual individual license for home improvement and home elevation work, overseen by a new state board.
At a glance
- New Jersey has no general home improvement license today; a home improvement contractor business registers with the Division of Consumer Affairs instead.
- The nonrefundable registration fee is $110, and a replacement or duplicate certificate costs $20.
- Registered businesses must carry at least $500,000 in commercial general liability insurance per occurrence, plus workers' compensation insurance unless exempt.
- A compliance bond, letter of credit, or other security of $10,000 to $50,000 is required, sized to the contractor's contract values, N.J.S.A. 56:8-142.
- The 2024 Home Improvement and Home Elevation Contractor Licensing Act is phasing in an individual contractor license under a new state board.
For New Jersey's broader contractor licensing picture, including the trade licenses the state does issue, see our New Jersey contractor license guide. This page covers only the home improvement contractor business rule and the new licensing law behind the "home improvement license" searches. For the general rules that apply to qualifying a business anywhere, see contractor license.
Who has to register as a home improvement contractor
Any person or business that offers, makes, or sells "home improvements" to residential or non-commercial property in New Jersey must register, unless a specific exemption applies. The law defines home improvement broadly: remodeling, altering, repairing, renovating, restoring, or modernizing a home, plus specific work such as driveways, siding, windows, kitchens, bathrooms, basements, insulation, and solar or water heating systems. The definition does not reach work that must legally be performed by a licensed master plumber, a licensed master HVACR contractor, or a licensed electrical contractor, since those trades carry their own state licenses.
That carve-out is why a New Jersey electrician or plumber working within their trade does not need a separate home improvement contractor registration for that work. A general remodeling company that also installs cabinets, siding, or flooring does need to register, even if it subcontracts the plumbing or electrical portions to separately licensed trades.
A short list of exemptions also applies under the 2024 licensing law: new home builders, licensed professionals such as architects and engineers, property managers, public utilities, certain home improvement retailers, and individuals who do no more than $1,500 on a single contract or $25,000 in home improvement work over a year. Confirm an unusual case with the Division before assuming an exemption applies.
What a registered business must carry
| Requirement | Current rule |
|---|---|
| Registration fee | $110, nonrefundable |
| Liability insurance | $500,000 per occurrence minimum |
| Workers' compensation | Required unless exempt by law |
| Additional security | Bond, letter of credit, or similar, $10,000 to $50,000 |
These four requirements must all be in place before the Division will issue, renew, or reinstate a registration. A lapse in the liability or workers' compensation policy must be cured with a new certificate filed within 10 days of the cancellation or non-renewal, or the Division can act against the registration.
Additional security (bond) tiers
The "additional security" required by N.J.S.A. 56:8-142 scales with how much work the business does, not a flat number. A contractor can satisfy it with a compliance bond, an irrevocable letter of credit, or other approved security.
| Minimum security | Single contract | 12-month total |
|---|---|---|
| $10,000 | Under $10,000 | Under $150,000 |
| $25,000 | $10,000 to $120,000 | $150,000 to $750,000 |
| $50,000 | Over $120,000 | $750,000 or more |
A contractor whose business grows into a higher tier during the year is expected to increase its security to match, since the rule looks at trailing 12-month contract activity as well as the single job in front of the contractor.
How to register
- Gather entity documents: a trade name certificate for a sole proprietor, or formation and standing documents for a corporation, LLC, or partnership.
- Secure a commercial general liability policy of at least $500,000 per occurrence, naming the business exactly as it will appear on the registration.
- Secure workers' compensation coverage, or documentation supporting an exemption.
- Secure the required additional security (bond, letter of credit, or other security) at the tier matching the business's contract activity.
- Complete the Home Improvement Contractor Business application, the disclosure statement, and the certification, and submit them with the $110 fee to the Division's Regulated Business Section.
- Display the issued registration number, which always begins "13VH," at the place of business, on consumer contracts and invoices, in advertisements, and on commercial vehicles used for the business.
Registration runs on an annual cycle and must be renewed before expiration, with proof that the insurance, workers' compensation, and additional security are still current. A business that lets its registration lapse cannot legally advertise or perform home improvements in New Jersey until it registers again.
The 2024 licensing law and the new state board
On January 8, 2024, Governor Murphy signed P.L. 2023, c. 237, which did three things at once: it amended the business registration statute into the Contractors' Business Registration Act, it created the Home Improvement and Home Elevation Contractor Licensing Act, N.J.S.A. 45:5AAA-1 et seq., and it established the New Jersey State Board of Home Improvement and Home Elevation Contractors inside the Division of Consumer Affairs.
Two things changed immediately for every registered business: the additional security requirement described above, and a new workers' compensation insurance mandate. The board has been appointed and is in the process of building out exam content, education standards, and continuing education requirements. The law's education and training provisions took effect February 1, 2026. Individual licensure, meaning a requirement that the person doing the work (not just the business) hold a license, phases in on a timeline tied to when the board finishes its rulemaking. Confirm the board's current implementation status with the Division before relying on a specific start date for individual licensing, since the rulemaking was still active as this page was written.
A business that falsifies information on a registration application or disclosure statement faces a civil penalty of $10,000 to $25,000 under the amended statute, N.J.S.A. 56:8-138.2(c), on top of whatever the Division's normal enforcement and the Consumer Fraud Act otherwise allow.
Home elevation is a related but separate registration
A contractor who lifts a home off its foundation and resets it, commonly done to meet flood elevation requirements along the New Jersey coast and waterways, needs a Home Elevation Contractor registration in addition to, or converted from, a home improvement contractor registration. Home elevation contractors carry higher insurance limits and bonding capacity than standard home improvement work requires. A home improvement contractor business that does not perform elevations does not need this separate registration.
Qualifying the business
A home improvement contractor business registration is tied to the business entity, not to any one individual qualifying it on a licensing board exam the way a trade license is. Many New Jersey businesses still rely on a qualifying agent, an owner or full time employee who holds the relevant trade licenses and supervises the regulated work, to satisfy the licensing requirements tied to the trades performed under the home improvement contract. Learn more about what that role involves on What is a qualifying agent, and see Hire a qualifying agent if the business needs one. Businesses that want help lining up a qualifier can also look at our contractor qualifier services.
Penalties for operating unregistered
New Jersey prohibits municipalities from issuing construction permits for home improvement work to a contractor who is not registered. The Division of Consumer Affairs and the Attorney General's office have pursued unregistered contractors under the Consumer Fraud Act, seeking civil penalties, restitution, and injunctions, with the Division's public statements noting that contractors caught a second time can face criminal charges as well as civil penalties. A homeowner can check a contractor's registration status through the Division's license verification line before signing a contract.
FAQ
Does New Jersey have a general contractor license? No. New Jersey does not license general contractors as a trade. Home improvement work is covered by the business registration described on this page, while specific trades such as electrical, plumbing, and HVAC carry their own state licenses. See New Jersey contractor license for those trade-specific rules.
Is the $110 fee an annual fee? It is the nonrefundable fee charged to register. Renewal happens annually, and the business must resubmit proof of insurance, workers' compensation, and additional security each cycle. Confirm the exact renewal amount in effect for the current cycle with the Division when the renewal notice arrives.
Who is exempt from registering? Exemptions include new home builders, certain licensed professionals, property managers, public utilities, some home improvement retailers, and anyone doing no more than $1,500 on a single contract or $25,000 in home improvement work in a year. Confirm with the board if a specific situation might qualify.
What happens once the new individual license is required? Under the 2024 law, the person performing home improvement or home elevation work, not just the business, will eventually need to hold a license issued by the new State Board of Home Improvement and Home Elevation Contractors. The requirement phases in after the board finishes its rulemaking. Businesses already registered should watch for notices from the Division as that date approaches.
Can I just use my registration number from a few years ago? No. Registration must be renewed every year, and a lapsed registration is not valid even if the number was issued previously. The number must also stay on contracts, ads, and vehicles only while the registration is active.
Qualifying a New Jersey home improvement contractor business, or getting ready for the new individual license, is easier with someone who has done it before. Marshall Schofield and Jeremiah Jaskulski, who lead The Licensing Company, are both licensed general contractors, master electricians, master plumbers, and master mechanical contractors. Call 615-219-2110 or visit Hire a qualifying agent to talk through what New Jersey requires for your business.
Sources
- New Jersey Home Improvement Contractor Business Application for Initial Registration, New Jersey Division of Consumer Affairs, form HICB-Form1-Rev. 12/16/24, retrieved 2026-10-27
- Notice to Home Improvement and Home Elevation Contractor Businesses Regarding Changes to the Law and New Requirements for Registration, New Jersey Division of Consumer Affairs, retrieved 2026-10-27
- Chapter 237, P.L. 2023 (Home Improvement and Home Elevation Contractor Licensing Act), New Jersey Legislature, retrieved 2026-10-27
- Attorney General and Division of Consumer Affairs file suit against unregistered home improvement contractors, New Jersey Office of the Attorney General, retrieved 2026-10-27
- Home improvement contractor registration requirements notice, New Jersey Office of the Attorney General, retrieved 2026-10-27
- N.J.A.C. 13:45A-17A, Home Elevation Contractor Registration, special adoption and concurrent proposal, New Jersey Division of Consumer Affairs, retrieved 2026-10-27
- 40 N.J.R. 1611(a), proposed amendments to N.J.A.C. 13:45A-17.11, New Jersey Register, retrieved 2026-10-27
Disclaimer: This article is provided for educational and informational purposes only. It does not constitute legal advice, licensing guidance, or an offer of services. Licensing requirements vary by jurisdiction. For specific compliance questions, contact The Licensing Company for a confidential consultation.