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 September 30, 1996

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 September 30, 1996
    Common Stock                             990,213
  ($.05 par value)




                          FORM 10-QSB
                TAYCO DEVELOPMENTS, INC. - INDEX

PART I - FINANCIAL INFORMATION
                                                                 
                                                         PAGE NO.

     Item 1.   Financial Statements                              

               Balance Sheets                                   3
               September 30, 1996, and June 30, 1996

               Statement of Income for three months             4
               ended September 30, 1996 and
               September 30, 1995
                    
               Statement of Cash Flows for three months         5
               ended September 30, 1996 and
               September 30, 1995
              
               Notes to Condensed Financial Statements          6
         
     Item 2.   Management's Discussion and Analysis of          7
               the Financial Condition and Results of
               Operations                                        


PART II - OTHER INFORMATION

     Item 1.   Legal Proceedings                               10

     Item 2.   Changes in Securities                           10

     Item 3.   Defaults Upon Senior Securities                 10

     Item 4.   Submission of Matters to Vote of Security       10
               Holders

     Item 5.   Other Information                               10

     Item 6.   Exhibits                                        10

     SIGNATURES                                                11



                          FORM 10-QSB                              
           TAYCO DEVELOPMENTS, INC. -  BALANCE SHEET
                                 
     ASSETS                              9/30/96          6/30/96
Current
  Cash                               $    23,296      $    23,473
  Receivables - Affiliates, Current       57,049           83,606
  Prepaid Other Expenses                  13,310            3,231
    Total Current Assets                  93,655          110,310
Investments - Affiliate, at Equity     1,242,524        1,242,524
  Furniture and Equipment - at Cost       71,770           61,821
  Less:  Accumulated Depreciation         54,450           54,150
                                       1,259,844        1,250,195
Other Assets       
  Patents, Net                           109,848           97,927
  Receivables - Affiliates, Long-term     - 0 -            - 0 -
  Cash Value - Life Insurance, Net        43,777           43,777
      Total Other Assets                 153,625          141,704

TOTAL ASSETS                          $ 1,507,124      $ 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                    11,124           18,747
  Accrued Expenses                        15,531           25,116
    Total Current Liabilities             54,458           71,666
  Long-term Debt                          75,120           82,314

Stockholders' Equity
  Common Stock, par value $.05
  per share, 1,000,000 shares
  authorized,  990,213 issued             49,696           49,696
  Paid - In Capital                      670,605          670,605
  Retained Earnings                      662,874          633,557
                                       1,383,175        1,353,858
Less: Cost of Treasury Stock
        3,709 shares at Cost               5,629            5,629
   Total Stockholders' Equity          1,377,546        1,348,229
                                     $ 1,507,124      $ 1,502,209



                          FORM 10-QSB
                    TAYCO DEVELOPMENTS, INC.
           CONSOLIDATED CONDENSED STATEMENT OF INCOME
 
                                  THREE MONTHS ENDED SEPTEMBER 30
                                                                 
                                         1996             1995

NET SALES
   Royalties                        $   45,521        $   28,009
   Research and Development             60,153            71,363
      Total Revenues                   105,674            99,372

EXPENSES
   Research and Development             29,828            29,692
   Selling, General Administrative      30,399            26,825
   Amortization - Patents                2,250             2,250
      Total Expenses                    62,477            58,767

      Operating Income                  43,197            40,605

OTHER INCOME/(EXPENSE)                     270             4,170
Income Before Provision for Income
   Taxes and Equity in Net Income
   of Affiliates                        43,467            44,775

Provision for Income Taxes              14,150            12,500

Net Income before Equity in
   Net Income of Affiliates             29,317            32,275

Equity in Net Income of Affiliates      19,067            41,452

Net Income                         $    48,384       $    73,727

Net Income per Share               $       .05       $       .07 
       


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

                                  THREE MONTHS ENDED SEPTEMBER 30

                                          1996            1995
CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income                           $ 29,317        $ 73,727
   Adjustments to Reconcile
     Net Income/to Net
   Net Cash Provided by Operating
     Activities:
     Amortization - Patents                2,250           2,250
     Equity in Net Income of Affiliates   - 0 -          (41,452)
   Changes in:
     Receivables - Affiliates             26,557         (10,703)
     Prepaid Expenses                    (10,079)         (8,196)
     Payables  -    Trade                 - 0 -           17,163
               -    Affiliates            - 0 -           - 0 -
     Accrued Income Taxes                 (7,623)         (6,783)
     Accrued Expenses                     (9,585)         (5,802)
     Amounts due to Stockholder           (7,194)         (7,662)
     Net Property, Plant & Equipment      (9,649)         (3,561)
   Net Cash Provided by Operating
     Activities                           13,994           8,981

CASH FLOWS FROM INVESTING ACTIVITIES
   Acquisition of Patents                (14,171)        (12,634)
   Net Increase in Cash                     (177)         (3,653)
Cash Balance, Beginning of Period         23,473          24,981
Cash Balance, End of Period           $   23,296      $   21,328 




                          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 September 30, 1996 and the results of operations for the
     three months 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 month period ended September 30, 1996, the
     profit was divided by 990,213 to calculate the earnings per
     share.

4.   The results of operations for the three month period ended
     September 30, 1996, 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 three months ended    
                       September 30, 1996 -vs- September 30, 1995
                                           Increase  (Decrease)

Royalties                                      $ 17,512
Research and Development Revenue                (11,210)
R&D Expense                                         136
SG&A                                              3,574
Amortization                                      - 0 -
Operating Income                                  2,592
Other Income (Expense)                           (3,900)
Income Before Taxes and Equity in Affiliates      1,308
Provision for Taxes                               1,650
Equity in Affiliates                            (22,385)
Net Income                                    ($ 25,343)



                           FORM 10-QSB
                     TAYCO DEVELOPMENTS, INC.
                 MANAGEMENT'S DISCUSSION (CONT'D)
                                
     In the first quarter of fiscal year 1997 ("QI97"), results
from operations were similar to those of QI96.  However, a decline
in the equity income from the Company's affiliate, Taylor Devices
caused a reduction in the Company's Net Income.

     In QI97, Total Revenues increased by 6.3% to $105,674 as
Royalties increased by $17,512 to offset a decline of $11,210 in
Research and Development income.  The improved Royalties figure is
attributable to the high level of defense sales in Devices' product
mix.  Total expenses increased by $3,710 over QI96.  This increase
is largely attributable to a revised method of distributing
internal royalty payments which should, in the long term, spread
this expense out more evenly.  Operating Income increased from
QI96's figure of $40,605 to $43,197 in QI97.

     As mentioned above, Equity in the Net Income of Affiliates
declined from $41,452 in QI96 to $19,067 in QI97.  This was
addressed in the Company's 10-KSB for the fiscal year ending
6/30/96.  Briefly put, the tax refund income and net operating loss
carryforward credits which benefitted Devices in Fiscal Years 1994,
1995 and 1996 have been used in their entirety.  Devices' QI96
income, and the Company's share of that income, no longer benefit
from those items.

     Net Income for QI97 was $48,384 and $.05 per share compared to
$73,727 and $.07 per share in QI96.  The figure of $48,384 ranks in
the middle of Net Income figure for the past five first quarters,
with Equity Income from Devices generally being the fluctuating
factor.

     The Company remains financially stable.  It continues to make
payments against its obligations with respect to the loans of its
former affiliate, Tayco Technology - and only one loan remains to
be paid off.  The Company's engineers are applying their efforts to
a number of defense related matters which are anticipated to
generate significant revenue for Devices (and Royalties to the
Company) in the near future.  The Company's work on the Electro-Rheological
damper has resulted in an invitation to Devices to
submit a Phase II proposal to SBIR.




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

     For the upcoming quarter and the remainder of FY97, Management
anticipates that financial results will continue to be positive -both from
internal operations and equity income.




                           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 - None



                          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   11/13/96        
    Douglas P. Taylor
    Chairman of the Board of Directors
    President
    (Principal Executive Officer)

          AND

By   /S/ Kenneth G. Bernstein              Date   11/13/96       
    Kenneth G. Bernstein
    Chief Accounting Officer