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Federal aviation regulations call for transponder inspections every 24 calendar months. An authorized avionics technician or aircraft mechanic must perform the inspection.
Features
According to an article from Avweb, mechanics check transponders for output power, bit encoding, and altitude accuracy. Federal aviation regulations state that transponders must read within 75 feet of an aircraft's actual altitude for instrument flight, and within 125 feet of an aircraft's actual altitude for visual flight.
Geography
A pilots can legally fly an aircraft that has not undergone a transponder inspection within the past 24 calendar months if he remains under 10,000 feet mean sea level and within Class E or G airspace. Transponders are only required above 10,000 feet and within Class A, B, C and D airspace. Additionally, pilots must have a transponder to fly within 30 nautical miles of a Class B airport.