The Water Resources Credit encourages the construction of water storage and control structures for soil and water conservation, wildlife management, agriculture, and aquiculture purposes. This tax credit does NOT apply to any pond, lake, or other water impoundment or water control structure located in or adjacent to and filled primarily by coastal waters of the state. An Income Tax credit is allowed for 25% of all allowable expenditures for the construction, installation, or restoration of ponds, lakes, other water impoundments, and water control structures designed for the purposes of water storage for irrigation, water supply, sediment control, erosion control or aquiculture and wildlife management. The credit is limited to $2,500. The maximum credit limit of $2,500 is determined at the entity level for pass-through entities. If the credit exceeds the tax liability, the excess may be carried forward for the next five taxable years.