----

**FORM      10-Q**

| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

**September      29, 2008**

| o | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

**0-19217**

**American      Tax Credit Properties III L.P.**

| **Delaware**                                   |   | **13-3545006**                     |
|------------------------------------------------|--------|------------------------------------|
| (State                or other jurisdiction of |   | (I.R.S.                Employer    |
| incorporation                or organization)  |   | Identification                No.) |

| **Richman                Tax Credit Properties III L.P.** |   |                      |
|-----------------------------------------------------------|--------|---------------------------|
| **340                Pemberwick Road**                    |   |                      |
| **Greenwich,                **Connecticut****             |   | **06831**                 |
| (Address                of principal executive offices)   |   | (Zip                Code) |

**(203)      869-0900**

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**PART      I - **
**FINANCIAL      INFORMATION**

**Item      1. **
**Financial      Statements**

| **Table                of Contents**         |   | **Page** |
|----------------------------------------------|--------|----------|
|                                         |   |     |
| Balance                Sheets                |   | 3        |
|                                         |   |     |
| Statements                of Operations      |   | 4        |
|                                         |   |     |
| Statements                of Cash Flows      |   | 5        |
|                                         |   |     |
| Notes                to Financial Statements |   | 7        |

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**BALANCE      SHEETS**

**(UNAUDITED)**

|                                                                                                      |   |      |   | **September 29,** |   | **March 30,** |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------|--------|------------------------|--------|--------------------|--------|
|                                                                                                      |   | **Notes** |   | **2008**               |   | **2008**           |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
| **ASSETS**                                                                                                |   |      |   |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
| Cash                and cash equivalents                                                                  |   |      |   |                   | $      | 1,083,494          |   | $ | 380,660 |   |
| Investments                in bonds                                                                       |   |      |   |                   |   |               |   |   | 870,596 |   |
| Investment                in local partnerships                                                           |   |      | 2      |                   |   | 489,332            |   |   | 504,607 |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   | $      | 1,572,826          |   | $ | 1,755,863 |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
| **LIABILITIES                AND PARTNERS’ EQUITY (DEFICIT)**                                       |   |      |   |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
| Liabilities                                                                                               |   |      |   |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
| Accounts                payable and accrued expenses                                                      |   |      |   |                   | $      | 478,562            |   | $ | 538,625 |   |
| Payable                to general partner and affiliates                                                  |   |      |   |                   |   | 2,861,369          |   |   | 2,721,295 |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   |   | 3,339,931          |   |   | 3,259,920 |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
| Commitment                and contingencies                                                               |   |      | 2,3    |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
| Partners’                equity (deficit)                                                           |   |      |   |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
| General                partner                                                                            |   |      |   |                   |   | (1,767,105         | )      |   | (1,507,483 | ) |
| Limited                partners (35,883 units of limited partnership interest                outstanding) |   |      |   |                   |   | —            |   |   | — |   |
| Accumulated                other comprehensive income, net                                                |   |      |   |                   |   | —            |   |   | 3,426 |   |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   |   | (1,767,105         | )      |   | (1,504,057 | ) |
|                                                                                                      |   |      |   |                   |   |               |   |   |   |   |
|                                                                                                      |   |      |   |                   | $      | 1,572,826          |   | $ | 1,755,863 |   |

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**STATEMENTS      OF OPERATIONS**

**(UNAUDITED)**

|                                                                                                                                             |   |      |   | **Three MonthsEnded****September 29,** |   | **Six Months****EndedSeptember 29,** |   | **Three MonthsEnded****September 29,** |     | **Six Months****EndedSeptember 29,** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------------------------------------------------|--------|------------------------------------------------|--------|--------------------------------------------------|----------|------------------------------------------------|--------|
|                                                                                                                                             |   | **Notes** |   | **2008**                                         |   | **2008**                                       |   | **2007**                                         |     | **2007**                                       |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| **REVENUE**                                                                                                                                      |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| Interest                                                                                                                                         |   |      |   |                                             | $      | 4,363                                          |   | $                                                | 12,812   |                                           | $      | 15,450 |   | $ | 31,219 |   |
| Other                income from local partnerships                                                                                              |   |      | 2      |                                             |   | 2,500                                          |   |                                             | 24,110   |                                           |   | 2,000 |   |   | 12,752 |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| TOTAL                REVENUE                                                                                                                     |   |      |   |                                             |   | 6,863                                          |   |                                             | 36,922   |                                           |   | 17,450 |   |   | 43,971 |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| **EXPENSES**                                                                                                                                     |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| Administration                fees                                                                                                               |   |      |   |                                             |   | 55,385                                         |   |                                             | 110,770  |                                           |   | 55,485 |   |   | 110,770 |   |
| Management                fees                                                                                                                   |   |      |   |                                             |   | 55,385                                         |   |                                             | 110,770  |                                           |   | 55,485 |   |   | 110,770 |   |
| Professional                fees                                                                                                                 |   |      |   |                                             |   | 15,996                                         |   |                                             | 43,842   |                                           |   | 16,747 |   |   | 37,485 |   |
| State                of New Jersey filing fee                                                                                                    |   |      |   |                                             |   | 5,856                                          |   |                                             | 10,877   |                                           |   | 4,125 |   |   | 10,792 |   |
| Printing,                postage and other                                                                                                       |   |      |   |                                             |   | 1,779                                          |   |                                             | 5,010    |                                           |   | 1,469 |   |   | 6,117 |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| TOTAL                EXPENSES                                                                                                                    |   |      |   |                                             |   | 134,401                                        |   |                                             | 281,269  |                                           |   | 133,311 |   |   | 275,934 |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
|                                                                                                                                             |   |      |   |                                             |   | (127,538                                       | )      |                                             | (244,347 | )                                              |   | (115,861 | ) |   | (231,963 | ) |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| Equity                in income (loss) of investment in local partnerships                                                                       |   |      | 2      |                                             |   | (1,661                                         | )      |                                             | (15,275  | )                                              |   | 23,786 |   |   | 25,349 |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| **NET                LOSS**                                                                                                                      |   |      |   |                                             |   | (129,199                                       | )      |                                             | (259,622 | )                                              |   | (92,075 | ) |   | (206,614 | ) |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| Other                comprehensive income (loss), net                                                                                            |   |      |   |                                             |   |                                           |   |                                             | (3,426   | )                                              |   | 5,115 |   |   | 4,513 |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| **COMPREHENSIVE                LOSS**                                                                                                            |   |      |   |                                             | $      | (129,199                                       | )      | $                                                | (263,048 | )                                              | $      | (86,960 | ) | $ | (202,101 | ) |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| **NET                LOSS ATTRIBUTABLE TO**                                                                                                      |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| General                partner                                                                                                                   |   |      |   |                                             | $      | (129,199                                       | )      | $                                                | (259,622 | )                                              | $      | (92,075 | ) | $ | (206,614 | ) |
| Limited                partners                                                                                                                  |   |      |   |                                             |   | —                                        |   |                                             | —  |                                           |   | — |   |   | — |   |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
|                                                                                                                                             |   |      |   |                                             | $      | (129,199                                       | )      | $                                                | (259,622 | )                                              | $      | (92,075 | ) | $ | (206,614 | ) |
|                                                                                                                                             |   |      |   |                                             |   |                                           |   |                                             |     |                                           |   |   |   |   |   |   |
| **NET                LOSS**per                unit of limited partnership interest (35,883 units of limited partnership                interest) |   |      |   |                                             | $      | —                                        |   | $                                                | —  |                                           | $      | — |   | $ | — |   |

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**STATEMENTS      OF CASH FLOWS**

**SIX      MONTHS ENDED SEPTEMBER 29, 2008 AND 2007**

**(UNAUDITED)**

|                                                                   |   | **2008** |      | **2007** |   |
|------------------------------------------------------------------------|--------|----------|-----------|----------|--------|
|                                                                   |   |     |      |     |   |   |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                |   |     |      |     |   |   |   |
|                                                                   |   |     |      |     |   |   |   |
| Interest                received                                       |   | $        | 7,982     |     | $      | 2,340 |   |
| Cash                paid for                                           |   |     |      |     |   |   |   |
| administration                fees                                     |   |     | (6,466    | )        |   | (7,758 | ) |
| management                fees                                         |   |     | (75,000   | )        |   | (100,000 | ) |
| professional                fees                                       |   |     | (77,927   | )        |   | (65,281 | ) |
| State                of New Jersey filing fee                          |   |     | (20,412   | )        |   | (12,190 | ) |
| printing,                postage and other expenses                    |   |     | (21,453   | )        |   | (1,117 | ) |
|                                                                   |   |     |      |     |   |   |   |
| Net                cash used in operating activities                   |   |     | (193,276  | )        |   | (184,006 | ) |
|                                                                   |   |     |      |     |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                |   |     |      |     |   |   |   |
|                                                                   |   |     |      |     |   |   |   |
| Proceeds                from maturities/redemptions and sales of bonds |   |     | 872,000   |     |   | 409,061 |   |
| Voluntary                advances to local partnerships                |   |     |           |     |   | (15,070 | ) |
| Cash                distributions from local partnerships              |   |     | 24,110    |     |   | 12,752 |   |
|                                                                   |   |     |      |     |   |   |   |
| Net                cash provided by investing activities               |   |     | 896,110   |     |   | 406,743 |   |
|                                                                   |   |     |      |     |   |   |   |
| Net                increase in cash and cash equivalents               |   |     | 702,834   |     |   | 222,737 |   |
|                                                                   |   |     |      |     |   |   |   |
| Cash                and cash equivalents at beginning of period        |   |     | 380,660   |     |   | 164,013 |   |
|                                                                   |   |     |      |     |   |   |   |
| **CASH                AND CASH EQUIVALENTS AT END OF PERIOD**          |   | $        | 1,083,494 |     | $      | 386,750 |   |
|                                                                   |   |     |      |     |   |   |   |
| **SIGNIFICANT                NON-CASH INVESTING ACTIVITIES**           |   |     |      |     |   |   |   |
|                                                                   |   |     |      |     |   |   |   |
| Unrealized                gain (loss) on investments in bonds, net     |   | $        | (3,426    | )        | $      | 4,513 |   |

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**STATEMENTS      OF CASH FLOWS - (continued)**

**SIX      MONTHS ENDED SEPTEMBER 29, 2008 AND 2007**

**(UNAUDITED)**

|                                                                                                     |   | **2008** |     | **2007** |   |
|----------------------------------------------------------------------------------------------------------|--------|----------|----------|----------|--------|
|                                                                                                     |   |     |     |     |   |   |   |
| **RECONCILIATION                OF NET LOSS TO NET CASH USED IN OPERATING                ACTIVITIES**    |   |     |     |     |   |   |   |
|                                                                                                     |   |     |     |     |   |   |   |
| Net                loss                                                                                  |   | $        | (259,622 | )        | $      | (206,614 | ) |
|                                                                                                     |   |     |     |     |   |   |   |
| Adjustments                to reconcile net loss to net cash used in operating                activities |   |     |     |     |   |   |   |
|                                                                                                     |   |     |     |     |   |   |   |
| Equity                in loss (income) of investment in local partnerships                               |   |     | 15,275   |     |   | (25,349 | ) |
| Distributions                from local partnerships classified as other income                          |   |     | (24,110  | )        |   | (12,752 | ) |
| Accretion                of zero coupon bonds                                                            |   |     | (4,830   | )        |   | (28,879 | ) |
| Increase                (decrease) in payable to general partner and affiliates                          |   |     | 140,074  |     |   | (24,194 | ) |
| Increase                (decrease) in accounts payable and accrued expenses                              |   |     | (60,063  | )        |   | 113,782 |   |
|                                                                                                     |   |     |     |     |   |   |   |
| **NET                CASH USED IN OPERATING ACTIVITIES**                                                 |   | $        | (193,276 | )        | $      | (184,006 | ) |

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**NOTES      TO FINANCIAL STATEMENTS**

**SEPTEMBER      29, 2008**

**(UNAUDITED)**

| **1.** | **Basis                of Presentation** |
|--------|------------------------------------------|

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**NOTES      TO FINANCIAL STATEMENTS - (Continued)**

**SEPTEMBER      29, 2008**

**(UNAUDITED)**

| **2.** | **Investment                in Local Partnerships** |
|--------|-----------------------------------------------------|

| Investment                in local partnerships as of March 30, 2008                                |   | $      | 504,607      |     |
|-----------------------------------------------------------------------------------------------------|--------|--------|--------------|----------|
|                                                                                                |   |   |         |     |
| Equity                in loss of investment in local partnerships                                   |   |   | (15,275      | )*  |
|                                                                                                |   |   |         |     |
| Cash                distributions received from Local Partnerships                                  |   |   | (24,110      | )   |
|                                                                                                |   |   |         |     |
| Cash                distributions from Local Partnerships classified as other                income |   |   |  24,110 |     |
|                                                                                                |   |   |         |     |
| Investment                in local partnerships as of September 29, 2008                            |   | $      | 489,332      |     |

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**NOTES      TO FINANCIAL STATEMENTS - (Continued)**

**SEPTEMBER      29, 2008**

**(UNAUDITED)**

| **2.** | **Investment                in Local Partnerships (continued)**  |
|--------|-----------------------------------------------------------------------|

|                                                                                                                                     |   | **June 30,** |             | **December 31,** |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------------|-----------------------|--------|
|                                                                                                                                     |   | **2008**          |             | **2007**              |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
| **ASSETS**                                                                                                                               |   |              |             |                  |   |   |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
| Cash                and cash equivalents                                                                                                 |   | $                 | 1,360,145        |                  | $      | 1,432,375 |   |
| Rents                receivable                                                                                                          |   |              | 612,140          |                  |   | 570,510 |   |
| Escrow                deposits and reserves                                                                                              |   |              | 5,185,550        |                  |   | 4,735,459 |   |
| Land                                                                                                                                     |   |              | 3,710,215        |                  |   | 3,710,215 |   |
| Buildings                and improvements (net of accumulated depreciation of $64,887,758                and                $62,997,117) |   |              | 46,873,655  |                  |   | 48,507,023 |   |
| Intangible                assets (net of accumulated amortization of $596,381 and                $575,345)                               |   |              | 276,101          |                  |   | 289,390 |   |
| Other                assets                                                                                                              |   |              | 1,498,129        |                  |   | 1,292,657 |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
|                                                                                                                                     |   | $                 | 59,515,935       |                  | $      | 60,537,629 |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
| **LIABILITIES                AND PARTNERS' EQUITY (DEFICIT)**                                                                            |   |              |             |                  |   |   |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
| Liabilities                                                                                                                              |   |              |             |                  |   |   |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
| Accounts                payable and accrued expenses                                                                                     |   | $                 | 1,567,280        |                  | $      | 1,497,839 |   |
| Due                to related parties                                                                                                    |   |              | 5,158,358        |                  |   | 4,792,214 |   |
| Mortgage                loans                                                                                                            |   |              | 76,208,669       |                  |   | 76,602,199 |   |
| Accrued                interest                                                                                                          |   |              | 6,065,546        |                  |   | 5,833,343 |   |
| Other                liabilities                                                                                                         |   |              | 758,587          |                  |   | 807,713 |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
|                                                                                                                                     |   |              | 89,758,440       |                  |   | 89,533,308 |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
| Partners'                equity (deficit)                                                                                                |   |              |             |                  |   |   |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
| American                Tax Credit Properties III L.P.                                                                                   |   |              |             |                  |   |   |   |
| Capital                contributions, net of distributions                                                                               |   |              | 26,588,807       |                  |   | 26,588,807 |   |
| Cumulative                loss                                                                                                           |   |              | (24,789,330      | )                     |   | (24,774,055 | ) |
|                                                                                                                                     |   |              |             |                  |   |   |   |
|                                                                                                                                     |   |              | 1,799,477        |                  |   | 1,814,752 |   |
|                                                                                                                                     |   |              |             |                  |   |   |   |
| General                partners and other limited partners                                                                               |   |              |             |                  |   |   |   |
| Capital                contributions, net of distributions                                                                               |   |              | (1,441,963       | )                     |   | (1,402,781 | ) |
| Cumulative                loss                                                                                                           |   |              | (30,600,019      | )                     |   | (29,407,650 | ) |
|                                                                                                                                     |   |              |             |                  |   |   |   |
|                                                                                                                                     |   |              | (32,041,982      | )                     |   | (30,810,431 | ) |
|                                                                                                                                     |   |              |             |                  |   |   |   |
|                                                                                                                                     |   |              | (30,242,505      | )                     |   | (28,995,679 | ) |
|                                                                                                                                     |   |              |             |                  |   |   |   |
|                                                                                                                                     |   | $                 | 59,515,935       |                  | $      | 60,537,629 |   |

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**NOTES      TO FINANCIAL STATEMENTS - (Continued)**

**SEPTEMBER      29, 2008**

**(UNAUDITED)**

| **2.** | **Investment                in Local Partnerships                (continued)** |
|--------|--------------------------------------------------------------------------------|

|                                                                                                                                                                                                     |   | **Three Months****Ended****June 30,** |      | **Six Months****Ended****June 30,** |   | **Three Months****Ended****June 30,** |   | **Six Months****Ended****June 30,** |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-----------|-----------------------------------------------|--------|-------------------------------------------------|--------|-----------------------------------------------|-----------|
|                                                                                                                                                                                                     |   | **2008**                                        |      | **2008**                                      |   | **2007**                                        |   | **2007**                                      |      |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| **REVENUE**                                                                                                                                                                                              |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| Rental                                                                                                                                                                                                   |   | $                                               | 3,092,014 |                                          | $      | 6,184,362                                       |   | $                                             | 2,987,949 |   | $ | 5,996,604 |   |
| Interest                  and other                                                                                                                                                                      |   |                                            | 47,831    |                                          |   | 113,576                                         |   |                                          | 142,769   |   |   | 224,195 |   |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| TOTAL                  REVENUE                                                                                                                                                                           |   |                                            | 3,139,845 |                                          |   | 6,297,938                                       |   |                                          | 3,130,718 |   |   | 6,220,799 |   |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| **EXPENSES**                                                                                                                                                                                             |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| Administrative                                                                                                                                                                                           |   |                                            | 692,917   |                                          |   | 1,377,433                                       |   |                                          | 754,201   |   |   | 1,510,292 |   |
| Utilities                                                                                                                                                                                                |   |                                            | 471,978   |                                          |   | 933,062                                         |   |                                          | 437,202   |   |   | 918,003 |   |
| Operating                  and maintenance                                                                                                                                                               |   |                                            | 728,672   |                                          |   | 1,529,081                                       |   |                                          | 759,877   |   |   | 1,502,449 |   |
| Taxes                  and insurance                                                                                                                                                                     |   |                                            | 304,358   |                                          |   | 606,417                                         |   |                                          | 313,981   |   |   | 640,390 |   |
| Financial                                                                                                                                                                                                |   |                                            | 558,324   |                                          |   | 1,138,126                                       |   |                                          | 566,972   |   |   | 1,132,529 |   |
| Depreciation                  and amortization                                                                                                                                                           |   |                                            | 958,409   |                                          |   | 1,921,463                                       |   |                                          | 963,624   |   |   | 1,935,148 |   |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| TOTAL                  EXPENSES                                                                                                                                                                          |   |                                            | 3,714,658 |                                          |   | 7,505,582                                       |   |                                          | 3,795,857 |   |   | 7,638,811 |   |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| **NET                  LOSS**                                                                                                                                                                            |   | $                                               | (574,813  | )                                             | $      | (1,207,644                                      | )      | $                                             | (665,139  | ) | $ | (1,418,012 | ) |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| **NET                  INCOME (LOSS) ATTRIBUTABLE TO**                                                                                                                                                   |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
| American                  Tax Credit Properties III L.P.                                                                                                                                                 |   | $                                               | (1,661    | )                                             | $      | (15,275                                         | )      | $                                             | 23,786    |   | $ | 25,349 |   |
| General                  partners and other limited partners, which includes $538,566, $1,133,902,                  $663,517 and $1,368,295 of Partnership loss in excess of                  investment |   |                                            | (573,152  | )                                             |   | (1,192,369                                      | )      |                                          | (688,825  | ) |   | (1,443,361 | ) |
|                                                                                                                                                                                                     |   |                                            |      |                                          |   |                                            |   |                                          |      |   |   |   |   |
|                                                                                                                                                                                                     |   | $                                               | (574,813  | )                                             | $      | (1,207,644                                      | )      | $                                             | (665,139  | ) | $ | (1,418,012 | ) |

| **3.** | **Additional                Information** |
|--------|-------------------------------------------|

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

| **Item              2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of                Operations** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------|

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

| **Item              2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of Operations                (continued)** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

| **Item              2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of Operations                (continued)** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

| **Item              2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of Operations                (continued)** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Registrant                accounts for its investment in local partnerships in accordance with                the                equity method of accounting since Registrant does not control the                operations of a Local Partnership. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | If                the book value of Registrant’s investment in a Local Partnership exceeds                the estimated value derived by management, Registrant reduces its                investment in any such Local Partnership and includes such reduction                in                equity in loss of investment in local partnerships. Registrant makes                such                assessment at least annually in the fourth quarter of its fiscal                year or                whenever there are indications that a permanent impairment may have                occurred. A loss in value of an investment in a Local Partnership                other                than a temporary decline would be recorded as an impairment loss.                Impairment is measured by comparing the investment carrying amount                to the                estimated residual value of the                investment. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Registrant                does not consolidate the accounts and activities of the Local                Partnerships, which are considered Variable Interest Entities under                Financial Accounting Standards Board (“FASB”) Interpretation No. 46 -                Revised, “Consolidation of Variable Interest Entities,” because Registrant                is not considered the primary beneficiary. Registrant’s balance in                investment in local partnerships represents the maximum exposure                to loss                in connection with such investments. Registrant's exposure to loss                on the                Local Partnerships is mitigated by the condition and financial performance                of the underlying Properties as well as the strength of the Local                General                Partners. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

| **Item              3.** | **Quantitative                and Qualitative Disclosure About Market                Risk** |
|--------------------------|---------------------------------------------------------------------------------------------|

| **Item              4T.** | **Controls                and Procedures** |
|---------------------------|--------------------------------------------|

----

**AMERICAN      TAX CREDIT PROPERTIES III L.P.**

**Part      II - **
**OTHER      INFORMATION**

| **Item              1.** | **Legal                Proceedings** |
|--------------------------|--------------------------------------|

| **Item              1A.** | **Risk                Factors** |
|---------------------------|---------------------------------|

| **Item              2.** | **Unregistered                Sales of Equity Securities and Use of                Proceeds** |
|--------------------------|-----------------------------------------------------------------------------------------------|

| **Item              3.** | **Defaults                Upon Senior Securities** |
|--------------------------|----------------------------------------------------|

| **Item              4.** | **Submission                of Matters to a Vote of Security                Holders** |
|--------------------------|---------------------------------------------------------------------------------------|

| **Item                5.** | **Other                  Information** |
|----------------------------|----------------------------------------|

| **Item              6.** | **Exhibits** |
|--------------------------|--------------|

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**SIGNATURES**

|                                    |   | **AMERICAN                TAX CREDIT PROPERTIES III L.P.**                                                       |
|-----------------------------------------|--------|------------------------------------------------------------------------------------------------------------------|
|                                    |   | (a                Delaware limited partnership)                                                                  |
|                                    |   |                                                                                                             |
|                                    |   | By:                         Richman Tax Credit Properties III L.P., |
|                                    |   |  General                Partner                                                                             |
|                                    |   |                                                                                                             |
|                                    |   | By:                         Richman Housing Credits Inc.,           |
|                                    |   |     general                partner                                                           |
|                                    |   |                                                                                                             |
| Dated:                November 13, 2008 |   | /s/David                Salzman                                                                                  |
|                                    |   | By: David                Salzman                                                                            |
|                                    |   | Chief                Executive Officer                                                                           |
|                                    |   |                                                                                                             |
| Dated:                November 13, 2008 |   | /s/Neal                Ludeke                                                                                    |
|                                    |   | By: Neal                Ludeke                                                                              |
|                                    |   | Chief                Financial Officer                                                                           |
|                                    |   |                                                                                                             |
| Dated:                November 13, 2008 |   | /s/Richard                Paul Richman                                                                           |
|                                    |   | By: Richard                Paul Richman                                                                     |
|                                    |   | Director                                                                                                         |

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