You cannot operate in Tennessee with another state's license. The reciprocal agreement is a trade exam waiver, only. The other state's trade exam scores are accepted if you are currently licensed as a "Contractor" by a contractor's board in Alabama (building, HVAC and electrical), Arkansas, Georgia (commercial), Louisiana, Mississippi, North Carolina (residential and commercial, only), Ohio (electrical and mechanical), or South Carolina. Tennessee also accepts the NASCLA National Commercial exam.
Contractors with licenses from the above states must still take the Tennessee Business and Law exam and complete all application requirements prior to being licensed in Tennessee.
Not all agencies within these states reciprocate due to their local codes and trades licensing. The state where you are licensed must complete the License Verification form located in the contractor license application.
In addition, many local trade exams, such as the electrical and mechanical with local municipalities (Nashville, Knoxville, Oak Ridge, etc.) in Tennessee might be acceptable. You must provide proof by having a letter stating their exam is comparable to Tennessee’s and was proctored.