diff --git a/engine/schema/src/com/cloud/storage/dao/SnapshotDaoImpl.java b/engine/schema/src/com/cloud/storage/dao/SnapshotDaoImpl.java
index d401065404e..204447c6909 100644
--- a/engine/schema/src/com/cloud/storage/dao/SnapshotDaoImpl.java
+++ b/engine/schema/src/com/cloud/storage/dao/SnapshotDaoImpl.java
@@ -175,6 +175,7 @@ public class SnapshotDaoImpl extends GenericDaoBase<SnapshotVO, Long> implements
         CountSnapshotsByAccount = createSearchBuilder(Long.class);
         CountSnapshotsByAccount.select(null, Func.COUNT, null);
         CountSnapshotsByAccount.and("account", CountSnapshotsByAccount.entity().getAccountId(), SearchCriteria.Op.EQ);
+        CountSnapshotsByAccount.and("status", CountSnapshotsByAccount.entity().getState(), SearchCriteria.Op.NIN);
         CountSnapshotsByAccount.and("removed", CountSnapshotsByAccount.entity().getRemoved(), SearchCriteria.Op.NULL);
         CountSnapshotsByAccount.done();
 
@@ -268,6 +269,7 @@ public class SnapshotDaoImpl extends GenericDaoBase<SnapshotVO, Long> implements
     public Long countSnapshotsForAccount(long accountId) {
         SearchCriteria<Long> sc = CountSnapshotsByAccount.create();
         sc.setParameters("account", accountId);
+        sc.setParameters("status", State.Error, State.Destroyed);
         return customSearch(sc, null).get(0);
     }
 
diff --git a/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java b/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
index 998a94164d1..a9eae7db1d5 100755
--- a/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
+++ b/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
@@ -430,8 +430,10 @@ public class SnapshotManagerImpl extends ManagerBase implements SnapshotManager,
                     UsageEventUtils.publishUsageEvent(EventTypes.EVENT_SNAPSHOT_DELETE, snapshotCheck.getAccountId(), snapshotCheck.getDataCenterId(), snapshotId,
                         snapshotCheck.getName(), null, null, 0L, snapshotCheck.getClass().getName(), snapshotCheck.getUuid());
                 }
-                _resourceLimitMgr.decrementResourceCount(snapshotCheck.getAccountId(), ResourceType.snapshot);
-                _resourceLimitMgr.decrementResourceCount(snapshotCheck.getAccountId(), ResourceType.secondary_storage, new Long(snapshotStoreRef.getSize()));
+                if (snapshotCheck.getState() != Snapshot.State.Error && snapshotCheck.getState() != Snapshot.State.Destroyed)
+                    _resourceLimitMgr.decrementResourceCount(snapshotCheck.getAccountId(), ResourceType.snapshot);
+                if (snapshotCheck.getState() == Snapshot.State.BackedUp)
+                    _resourceLimitMgr.decrementResourceCount(snapshotCheck.getAccountId(), ResourceType.secondary_storage, new Long(snapshotStoreRef.getSize()));
             }
             return result;
         } catch (Exception e) {
@@ -949,7 +951,6 @@ public class SnapshotManagerImpl extends ManagerBase implements SnapshotManager,
 
                 UsageEventUtils.publishUsageEvent(EventTypes.EVENT_SNAPSHOT_CREATE, snapshot.getAccountId(), snapshot.getDataCenterId(), snapshotId, snapshot.getName(),
                     null, null, volume.getSize(), snapshot.getClass().getName(), snapshot.getUuid());
-                _resourceLimitMgr.incrementResourceCount(snapshotOwner.getId(), ResourceType.snapshot);
                 SnapshotDataStoreVO snapshotStoreRef = _snapshotStoreDao.findBySnapshot(snapshotId, DataStoreRole.Image);
                 // Correct the resource count of snapshot in case of delta snapshots.
                 _resourceLimitMgr.decrementResourceCount(snapshotOwner.getId(), ResourceType.secondary_storage, new Long(volume.getSize() - snapshotStoreRef.getSize()));
@@ -958,6 +959,7 @@ public class SnapshotManagerImpl extends ManagerBase implements SnapshotManager,
             }
         } catch (Exception e) {
             s_logger.debug("Failed to create snapshot", e);
+            _resourceLimitMgr.decrementResourceCount(snapshotOwner.getId(), ResourceType.snapshot);
             _resourceLimitMgr.decrementResourceCount(snapshotOwner.getId(), ResourceType.secondary_storage, new Long(volume.getSize()));
             throw new CloudRuntimeException("Failed to create snapshot", e);
         }
@@ -1102,6 +1104,7 @@ public class SnapshotManagerImpl extends ManagerBase implements SnapshotManager,
         if (snapshot == null) {
             throw new CloudRuntimeException("Failed to create snapshot for volume: " + volume.getId());
         }
+        _resourceLimitMgr.incrementResourceCount(volume.getAccountId(), ResourceType.snapshot);
         _resourceLimitMgr.incrementResourceCount(volume.getAccountId(), ResourceType.secondary_storage, new Long(volume.getSize()));
         return snapshot;
     }