SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549
                          FORM 10-QSB

       QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                SECURITIES EXCHANGE ACT OF 1934


For quarter ended March 31, 1997

Commission File Number 2-15966  


                         TAYCO DEVELOPMENTS, INC.                
     (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)



            NEW YORK                             16-0835557      
(State or other Jurisdiction of               (I.R.S. Employer
  incorporation or organization)             Identification Number)



100 TAYLOR DRIVE, NORTH TONAWANDA, NEW YORK            14120-0748
  Address of principal executive offices                 Zip Code

Registrant's telephone number, including area code -   716-694-0877

Indicate by check mark whether the registrant (1) has filed all
annual, quarterly, and other reports required to be filed with all
the Commission and (2) has been subject to the filing requirements
for at least the past 90 days.  

Yes  X   No    

Indicate the number of shares outstanding, of each of the Issuer's
classes of common stock as of the close of the period covered by
this report.



           CLASS                    Outstanding at March 31, 1997
Common Stock ($.05 par value)                  990,213

                          FORM 10-QSB
                TAYCO DEVELOPMENTS, INC. - INDEX


PART I - FINANCIAL INFORMATION
                                                                 
                                                         PAGE NO.

     Item 1.   Financial Statements                              

               Balance Sheets                                   3
               March 31, 1997, and June 30, 1996

               Statement of Income for three months and         4
               nine months ended March 31, 1997 and
               March 31, 1996                    
              
               Statement of Cash Flows for nine months          5
               ended March 31, 1997 and March 31, 1996
              
               Notes to Consolidated Condensed Financial        6
               Statements
         
     Item 2.   Management's Discussion and Analysis of the      7
               Financial Condition and Results of Operations     


PART II - OTHER INFORMATION

     Item 1.   Legal Proceedings                               10

     Item 2.   Changes in Securities                           10

     Item 3.   Submission of Matters to Vote of Security       10
               Holders

     Item 4.   Other Information                               10

     Item 5.   Exhibits                                        10

     SIGNATURES                                                11





                          FORM 10-QSB
                               
            TAYCO DEVELOPMENTS, INC. -  BALANCE SHEET
     ASSETS                              3/31/97         6/30/96
Current
  Cash                                 $   26,487     $   23,473
  Receivables - Affiliates, Current        66,647         83,606
  Prepaid Other Expenses                    9,356          3,231
    Total Current Assets                  102,490        110,310

Investments - Affiliate, at Equity      1,333,732      1,242,524
  Furniture and Equipment - at Cost        71,770         61,821
  Less:  Accumulated Depreciation          55,050         54,150
                                        1,350,452      1,250,195
Other Assets       
  Patents, Net                            116,551         97,927
  Receivables - Affiliates, Long-term        -0-            -0-
  Cash Value - Life Insurance, Net         43,777         43,777
      Total Other Assets                  160,328        141,704

TOTAL ASSETS                           $1,613,270     $1,502,209

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current
  Payables - Trade                     $    - 0 -     $    - 0 -
  Payables - Affiliate                      - 0 -          - 0 -
  Current Portion of Long Term Debt        27,803         27,803
  Accrued Income Taxes                     (3,544)        18,747
  Accrued Expenses                         19,773         25,116
    Total Current Liabilities              44,032         71,666
  Long-term Debt                           57,754         82,314

Stockholders' Equity
  Common Stock, par value $.05 per
  share, 1,000,000 shares authorized,
  990,213 issued and outstanding           49,696         49,696
  Paid - In Capital                       670,605        670,605
  Retained Earnings                       796,812        633,557
                                        1,517,113      1,353,858
Less: Cost of Treasury Stock
        3,709 shares at Cost                5,629          5,629
   Total Stockholders' Equity           1,511,484      1,348,229

   Total Liabilities and
      Stockholders' Equity             $1,613,270     $1,502,209





                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
           CONSOLIDATED CONDENSED STATEMENT OF INCOME


                                  Nine Months      Three Months
                                Ended 3/31        Ended 3/31

                               1997     1996     1997     1996
NET SALES
Royalties                    $130,007  $87,825  $40,114  $38,530
Research and Development      175,880  191,464   57,050   55,874
 Total Revenues               305,887  279,289   97,164   94,404

EXPENSES
Research and Development       91,208   78,365   28,858   28,554
Selling, General
 Administrative               104,252   91,661   37,440   25,307
Amortization - Patents          6,750    6,750    2,250    2,250
 Total Expenses               202,210  176,776   68,548   56,111

 Operating Income             103,677  102,513   28,616   38,293

OTHER INCOME/(EXPENSE)         (1,030)   1,430     (530)  (1,140)
Income Before Provision for
 Income Taxes and Equity in
 Net Income of Affiliates     102,647  103,943   28,086   37,153
  
Provision for Income Taxes     30,600   34,000    4,300   13,000

Net Income before Equity in
 Net Income of Affiliates      72,047   69,943   23,786   24,153 

Equity in Net Income of
 Affiliates                    91,208  131,942   35,879   43,462

Net Income                   $163,255 $201,885  $59,665  $67,615

Net Income per Share         $   .165 $   .204  $   .06  $  .068





                               
                               
                               
                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
           STATEMENT OF CHANGES IN FINANCIAL POSITION




                                       NINE MONTHS ENDED MARCH 31
                                               1997       1996
CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income                               $ 163,255  $ 201,885
   Adjustments to Reconcile
     Net Income to Net Cash
     Provided by Operating
     Activities:
     Amortization - Patents                     6,750      6,750
     Equity in Net Income of Affiliates        (91,208)  (131,942)
   Changes in:
     Receivables - Affiliates                  16,959    (15,376)
     Prepaid Expenses                          (6,125)    (5,150)
     Payables - Trade                           - 0 -      2,133
              - Affiliates                      - 0 -      - 0 -
     Accrued Income Taxes                      (22,291)    (2,933)
     Accrued Expenses                           (5,343)   (18,050)
     Amounts due to Stockholder               (24,560)   (22,835)
   Net Cash Provided by Operating
     Activities                                37,437     14,482 

CASH FLOWS FROM INVESTING ACTIVITIES
   Acquisition of Patents/PPE                  (34,423)   (13,129)
   Net Increase in Cash                         3,014      1,353
Cash Balance, Beginning of Period              23,473     24,981
Cash Balance, End of Period                  $ 26,487   $ 26,334




                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
      NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENT



1.   In opinion of the Company, the accompanying unaudited
     consolidated condensed financial statements contain all
     adjustments necessary to present fairly the financial position
     as of March 31, 1997 and March 31, 1996 and the results of
     operations for the three months and nine months then ended.

2.   There is no provision nor shall there be any provision for
     profit sharing, dividends, or any other benefits of any nature
     at any time for this fiscal year.

3.   For the three and nine month periods ended March 31, 1997 and
     March 31, 1996, the profit was divided by 990,213.

4.   The results of operations for the three and nine month periods
     ended March 31, 1997, are not necessarily indicative of the
     results to be expected for the full year.

                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
          MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE
         FINANCIAL CONDITION AND RESULTS OF OPERATIONS

     The following is Management's discussion and analysis of
certain significant factors which have affected the Company's
earnings during the periods included in the accompanying
consolidated condensed statements of income.

     The Private Securities Litigation Reform Act of 1995 provides
a "safe harbor" for forward-looking statements.  Certain matters
discussed in this section and elsewhere in this report are forward-looking
statements.  These forward-looking statements involve risks
and uncertainties including, but not limited to, economic
conditions, product demand and industry capacity, competition, and
other risks.

     A summary of the period to period changes in the principal
items included in the consolidated statements of income is shown
below:
                               Comparisons of nine months ended
                                March 31, 1997 vs. March 31, 1996
                                          Increase  (Decrease)
Royalties                                     $  42,182 

Research and Development Revenue                (15,584)

R&D Expense                                      12,843 

SG&A                                             12,591

Amortization                                      - 0 - 

Operating Income                                  1,164 

Other Income (Expense)                           (2,460) 

Income Before Taxes and Equity in Affiliates     (1,296)

Provision for Taxes                              (3,400) 

Equity in Affiliates                            (40,734) 

Net Income                                     $(38,630) 

                           FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
                 MANAGEMENT'S DISCUSSION (CONT'D)


     For the nine months ending March 31, 1997, the Company's
Operating Income showed a solid improvement over the same period
for the prior fiscal year.  A substantial reduction in the amount
of equity income booked resulted in a decrease in Net Income for
the comparative periods.

NINE MONTH RESULTS

     Total Revenues, led by an increase in Royalty Income,
increased to $305,887 for the three quarters ending March 31, 1997
(YTD97), an improvement of $26,598 and approximately 9.5% over the
same period in FY96 (YTD96) Expenses increased by $25,434 in the
period resulting in a net improvement of $1,164 of Operating
Income.  A key factor in the increased expenses was the revised
internal royalty calculation method referenced in earlier reports.
Net Income before Equity in the Net Income of Affiliates was
$72,047 for YTD97, $2,104 higher than YTD96.  Equity Income from
the Company's affiliate, Taylor Devices, was $91,208 for YTD97,
$40,734 lower than YTD96's figure.  Based on the stable Operating
Income and the reduced Equity Income, the Net Income for YTD97 was
$163,255 and $.165 per share compared to $201,885 and $.204 per
share for YTD96.

THREE MONTH RESULTS

     For the three months ending March 31, 1997 (Q397) Total
Revenues of $97,164 exceeded those of Q396 by $2,760.  Expenses
increased by $12,437 resulting in Operating Income of $28,616 in
Q397 versus $38,923 for Q396.  After adjustments for Other Income
and Taxes, the Net Income for the two periods is about equal -
$23,786 for Q397 and $24,153 for Q396.  Equity Income from Devices
was $35,879 in Q397, $7,583 lower than Q396's figure.  Net Income
for Q397 was $59,665 and $.06 per share compared to $67,615 and
$.068 per share for Q396.

REMAINDER OF FY96

     Although total Fiscal Year 1997 financial results have not
been at the record levels of Fiscal Year 1996, FY97 is, by basic
measures, the second best year since the Company was restructured
shortly before FY92.  In terms of operating income, it is the best.
The $72,047 of net operating income in FY97 is the highest of the
                           FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
                 MANAGEMENT'S DISCUSSION (CONT'D)


six years and the third quarter net operating income of $23,786 was
within $400 of the best third quarter figure.  The Company's
management has taken steps to have these strong operating figures
continue.  Funding has been received recently for research and
development in two distinctly different areas - commercial
elevators and commercial helicopters.  Simultaneously, the Company
is participating in a Small Business Administration Program
involving new concepts in building frames.

The Company remains in a strong and stable financial position and
is entering the final three (3) months of its obligations for the
loans of its former affiliate, Tayco Technology.  At this point in
the fiscal year, Management believes that the nine month results of
March 31, 1997 will carry forward to the year end, making FY97 one
of the strongest years since the restructuring in terms of
operating results and overall results.


                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.




PART II - OTHER INFORMATION

     ITEM 1   Legal Proceedings
              The Company is not currently engaged in any
              litigation.


     ITEM 2   Changes in Securities - None


     ITEM 3   Defaults Upon Senior Securities - None


     ITEM 4   Submission of Matters to Vote of Securities Holders -
              None


     ITEM 5   Other Information - None


     ITEM 6   Exhibits

              At a meeting of the Registrants' Board of Directors
               held following the Annual Meeting of Shareholders on
              November 8, 1996, the Board amended the Company's
               By-laws to allow for telephonic communication and to
              allow the Board from time-to-time to establish
              compensation to the Directors.

              The Resolutions are attached to this 10-QSB report
              as Exhibit (3)(vi).

                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
                               
                               
                               
                               
                           SIGNATURES
                                

     Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.



TAYCO DEVELOPMENTS, INC.
(Registrant)





By   /s/Douglas P. Taylor                      Date           
     Douglas P. Taylor
     Chairman of the Board of Directors
     President
     (Principal Executive Officer)

          AND





By  /s/Kenneth G. Bernstein                    Date           
     Kenneth G. Bernstein
     Chief Accounting Officer