Is it permissible to install switches inside closets to control the closet lights, or does the switch have to mounted outside closet? Can not find any reference in the code to this.
If I was the contractor, I would avoid installing a switch in that location, although others may disagree with me.
Some circuit breakers are also considered switches. In this case, no:
240.24(D) Not in Vicinity of Easily Ignitible Material. Overcurrent
devices shall not be located in the vicinity of easily ignitible
material, such as in clothes closets.
Other than that, I can't find anything to prohibit it either. There is a very slight arc with a switch. Of course, it's in a box that is perfectly flush with the wall (hopefully) and has a faceplate that isn't cracked or broken. It's up to the EC.
As long as the requirements in 404.9 and 404.10 are satisfied, the switch can be installed within a closet.
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