UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the

quarterly period ended                               June 30, 2006
                       ---------------------------------------------------------

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the

transition period from ______________________________ to _______________________

Commission File Number                               333-37504
                       ---------------------------------------------------------

                          ICON Income Fund Eight B L.P.
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

            Delaware                                       13-4101114
--------------------------------------------------------------------------------
(State or other jurisdiction of             (IRS Employer Identification Number)
incorporation or organization)

 100 Fifth Avenue, 4th Floor, New York, New York            10011-1505
--------------------------------------------------------------------------------
 (Address of principal executive offices)                (Zip code)

                                 (212) 418-4700
--------------------------------------------------------------------------------
               Registrant's telephone number, including area code

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days. [x] Yes [ ] No

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer or a  non-accelerated  filer.  See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 of the  Exchange  Act.  Large
accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [x]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). [ ] Yes [x] No

Number of outstanding  limited  partnership units of the registrant on August 1,
2006 is 741,530.

<PAGE>


<TABLE>
<CAPTION>

                          ICON Income Fund Eight B L.P.
                                      Index


PART I - FINANCIAL INFORMATION                                                         Page

<S>                                                                                    <C>
     Item 1.  Condensed Consolidated Financial Statements

         Condensed Consolidated Balance Sheets at June 30, 2006 (Unaudited) and
           December 31, 2005                                                             1

         Condensed Consolidated Statements of Operations for the Three and Six
           Months Ended June 30, 2006 and 2005 (Unaudited)                               3

         Condensed Consolidated Statement of Changes in Partners' Equity for the Six
           Months Ended June 30, 2006 (Unaudited)                                        4

         Condensed Consolidated Statements of Cash Flows for the Six Months Ended
           June 30, 2006 and 2005 (Unaudited)                                            5

         Notes to Condensed Consolidated Financial Statements (Unaudited)                7

     Item 2.  General Partner's Discussion and Analysis of Financial Condition and
              Results of Operations                                                     13

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk                19

     Item 4.  Controls and Procedures                                                   19

PART II - OTHER INFORMATION

     Item 1.  Legal Proceedings                                                         20

     Item 1A. Risk Factors                                                              20

     Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds               21

     Item 3.  Defaults Upon Senior Securities                                           21

     Item 4.  Submission of Matters to a Vote of Security Holders                       21

     Item 5.  Other Information                                                         21

     Item 6.  Exhibits                                                                  21

Signatures                                                                              22

</TABLE>

<PAGE>

                         PART I - FINANCIAL INFORMATION

Item 1.  Condensed Consolidated Financial Statements

                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
                      Condensed Consolidated Balance Sheets

                                     ASSETS


                                                 (Unaudited)
                                                   June 30,        December 31,
                                                     2006             2005
                                                 -----------       -----------
 Cash and cash equivalents                       $ 1,231,241       $   848,665
                                                 -----------       -----------

 Investments in finance leases:
      Minimum rents receivable                       807,260         2,486,536
      Estimated unguaranteed residual values         273,825           677,390
      Initial direct costs, net                        1,784             8,347
      Unearned income                                (28,256)         (132,337)
                                                 -----------       -----------

         Net investments in finance leases         1,054,613         3,039,936
                                                 -----------       -----------

 Investments in operating leases:
      Equipment, at cost                         114,208,991       118,154,977
      Accumulated depreciation                   (42,395,399)      (41,174,571)
                                                 -----------       -----------

         Net investments in operating leases      71,813,592        76,980,406
                                                 -----------       -----------

 Investments in joint ventures                     4,008,577         5,002,985
 Due from General Partner and affiliates                   -            92,836
 Investment in option, at cost                     2,100,000         2,100,000
 Other assets, net                                 3,889,296         3,895,419
                                                 -----------       -----------

         Total assets                            $84,097,319       $91,960,247
                                                 ===========       ===========

See accompanying notes to condensed consolidated financial statements.

                                       1
<PAGE>
                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
                      Condensed Consolidated Balance Sheets

                        LIABILITIES AND PARTNERS' EQUITY


                                                    (Unaudited)
                                                      June 30,     December 31,
                                                        2006          2005
                                                    -----------    -----------
 Notes payable - non-recourse                       $57,410,506    $63,746,059
 Notes payable - recourse                             1,795,000              -
 Due to General Partner and affiliates                   27,101              -
 Deferred rental income                                 454,458        497,303
 Accounts payable and other liabilities               1,652,433        426,263
 Minority interest                                      186,796        353,481
                                                    -----------    -----------

      Total liabilities                              61,526,294     65,023,106
                                                    -----------    -----------

 Commitments and contingencies

 Partners' equity:
      General Partner                                  (423,636)      (380,487)
      Limited Partners (741,530 and 742,830 units
         outstanding, $100 per unit original
           issue price)                              22,994,661     27,317,628
                                                    -----------    -----------

      Total partners' equity                         22,571,025     26,937,141
                                                    -----------    -----------

      Total liabilities and partners' equity        $84,097,319    $91,960,247
                                                    ===========    ===========

See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>

                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Operations
                                   (Unaudited)


<TABLE>
<CAPTION>

                                                                    Three Months Ended June 30,     Six Months Ended June 30,
                                                                   ----------------------------   ----------------------------
                                                                        2006           2005            2006           2005
                                                                   -------------    -----------   -------------    -----------
 Revenue:
<S>                                                                <C>              <C>           <C>              <C>
      Rental income                                                $   4,038,662    $ 4,973,605   $   8,183,025    $10,112,212
      Finance income                                                      39,503        172,320         104,081        370,848
      (Loss) income from investments in joint ventures                  (790,549)       124,691        (994,408)       264,087
      Net gain (loss) on sales of equipment                              466,992         40,676         446,313       (137,053)
      Net gain on sale of investment in unguaranteed residual values           -          4,671               -        320,097
      Interest and other income                                            3,012        218,655          71,328        218,655
                                                                   -------------    -----------   -------------    -----------

         Total revenue                                                 3,757,620      5,534,618       7,810,339     11,148,846
                                                                   -------------    -----------   -------------    -----------

 Expenses:
      Depreciation and amortization                                    2,798,977      3,338,121       5,259,692      6,763,295
      Interest                                                           888,822      1,114,409       1,742,569      2,265,131
      Maintenance expense                                                277,698              -       1,152,698              -
      Management fees - General Partner                                   55,545        213,409         410,842        725,104
      Administrative expense reimbursements - General Partner             27,101         95,708         161,980        317,181
      General and administrative                                         153,422         58,176         346,050        560,449
      Minority interest                                                   27,058         28,668          52,442         61,912
                                                                   -------------    -----------   -------------    -----------

         Total expenses                                                4,228,623      4,848,491       9,126,273     10,693,072
                                                                   -------------    -----------   -------------    -----------

 Net (loss) income                                                 $    (471,003)   $   686,127   $  (1,315,934)   $   455,774
                                                                   =============    ===========   =============    ===========

 Net (loss) income allocable to:
      Limited Partners                                             $    (466,293)   $   679,266   $  (1,302,775)   $   451,216
      General Partners                                                    (4,710)         6,861         (13,159)         4,558
                                                                   -------------    -----------   -------------    -----------

                                                                   $    (471,003)   $   686,127   $  (1,315,934)   $   455,774
                                                                   =============    ===========   =============    ===========

 Weighted average number of limited partnership
      units outstanding                                                  741,656        743,279         741,973        743,279
                                                                   =============    ===========   =============    ===========

 Net (loss) income per weighted average limited
      partnership unit outstanding                                 $       (0.63)   $      0.91   $       (1.76)   $      0.61
                                                                   =============    ===========   =============    ===========
</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>

                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
         Condensed Consolidated Statement of Changes in Partners' Equity
                         Six Months Ended June 30, 2006
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                      Limited
                                                                      Partner                                         Total
                                                                       Units          Limited        General         Partners'
                                                                    Outstanding       Partners       Partner          Equity
                                                                   -------------    -----------   -------------    -----------
<S>                                                                <C>              <C>           <C>              <C>
 Balance, January 1, 2006                                                742,830    $27,317,628   $    (380,487)   $26,937,141

 Limited partnership units redeemed                                       (1,300)       (51,135)             -         (51,135)
 Cash distributions to partners                                               -      (2,969,057)        (29,990)    (2,999,047)
 Net loss                                                                     -      (1,302,775)        (13,159)    (1,315,934)
                                                                   -------------    -----------   -------------    -----------

 Balance, June 30, 2006                                                  741,530    $22,994,661   $    (423,636)   $22,571,025
                                                                   =============    ===========   =============    ===========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       4
<PAGE>


                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Cash Flows
                            Six Months Ended June 30,
                                   (Unaudited)


<TABLE>
<CAPTION>

 Increase (decrease) in cash and cash equivalents                                   2006              2005
                                                                                 -----------       -----------
<S>                                                                              <C>               <C>
 Cash flows from operating activities:
      Net (loss) income                                                          $(1,315,934)      $   455,774
      Adjustments to reconcile net (loss) income to net cash provided by
         (used in) operating activities:
            Rental income paid directly to lenders by lessees                     (6,799,919)       (8,925,817)
            Finance income paid directly to lenders by lessees                      (104,081)         (283,881)
            Net (gain) loss on sales of equipment                                   (446,313)          137,053
            Loss (income) from investments in joint ventures                         994,408          (264,087)
            Net gain from sale of investment in unguaranteed residual values               -          (320,097)
            Depreciation and amortization                                          5,259,692         6,763,295
            Interest expense on non-recourse financing paid directly to lenders    1,716,818         2,044,023
            Minority interest                                                         52,442            61,912
      Changes in operating assets and liabilities:
         Collection of principal - non-financed receivables                          427,504           315,743
         Due from/to General Partner and affiliates                                  119,937           (63,913)
         Other assets                                                                (66,563)         (149,435)
         Deferred rental income                                                      (42,845)           89,589
         Accounts payable and other liabilities                                    1,216,181           (12,379)
                                                                                 -----------       -----------

 Net cash provided by (used in) operating activities                               1,011,327          (152,220)
                                                                                 -----------       -----------

 Cash flows from investing activities:
      Proceeds from sales of equipment and sales advances received                   835,569           675,006
      Loans and advances to affiliates                                                     -          (672,992)
      Distributions to minority interest in  joint venture                          (219,127)         (190,159)
      Proceeds from sale of investment in unguaranteed residual values                     -           320,097
                                                                                 -----------       -----------

 Net cash provided by investing activities                                           616,442           131,952
                                                                                 -----------       -----------

 Cash flows from financing activities:
      Cash distributions to partners                                              (2,989,058)       (3,003,154)
      Proceeds from recourse borrowings                                            1,795,000         2,610,000
      Cash paid for redemption of limited partnership units                          (51,135)                -
                                                                                 -----------       -----------

 Net cash used in financing activities                                            (1,245,193)         (393,154)
                                                                                 -----------       -----------

 Net increase (decrease) in cash and cash equivalents                                382,576          (413,422)

 Cash and cash equivalents, beginning of the period                                  848,665         1,249,480
                                                                                 -----------       -----------

 Cash and cash equivalents, end of the period                                    $ 1,231,241       $   836,058
                                                                                 ===========       ===========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       5
<PAGE>

                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
                 Condensed Consolidated Statements of Cash Flows
                            Six Months Ended June 30,
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                                    2006               2005
                                                                                 -----------       -----------
<S>                                                                              <C>               <C>
 Supplemental disclosure of cash flow information:
      Cash paid during the period for interest                                   $    25,267       $   221,108
                                                                                 ===========       ===========


 Supplemental disclosure of non-cash investing and financing activities:
      Principal and interest paid directly to lenders by lessees                 $ 8,052,371       $11,246,379
                                                                                 ===========       ===========
      Notes payable non-recourse relinquished with repossession of equipment     $         -       $ 3,398,406
                                                                                 ===========       ===========
      Joint venture interests acquired from affiliate in exchange
         for amounts owed                                                        $         -       $   672,992
                                                                                 ===========       ===========
      Escrow utilized to pay non-recourse debt                                   $   281,868       $         -
                                                                                 ===========       ===========
      Transfer of equipment from direct finance lease to operating lease         $   403,565       $         -
                                                                                 ===========       ===========

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       6
<PAGE>

                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(1)    Basis of Presentation and Consolidation

     The accompanying condensed consolidated financial statements of ICON Income
Fund Eight B L.P (the  "Partnership")  have been  prepared  in  accordance  with
accounting  principles  generally  accepted in the United  States of America for
interim  financial  information and pursuant to the rules and regulations of the
Securities  and  Exchange  Commission  for Form 10-Q.  Accordingly,  they do not
include all of the information and footnotes  required by accounting  principles
generally  accepted  in the United  States of  America  for  complete  financial
statements.  In the opinion of the General Partner, all adjustments  (consisting
only of normal recurring accruals)  considered necessary for a fair presentation
have been included.  These condensed consolidated financial statements should be
read in  conjunction  with  the  consolidated  financial  statements  and  notes
included in the  Partnership's  2005 Annual Report on Form 10-K. The results for
the interim  period are not  necessarily  indicative of the results for the full
year.

     The condensed consolidated financial statements include the accounts of the
Partnership and its majority owned subsidiaries.  All intercompany  accounts and
transactions have been eliminated in consolidation.

     The Partnership accounts for its noncontrolling interests in joint ventures
where the  Partnership  has  influence on  financial  and  operational  matters,
generally greater than 5% but less than 50% ownership interest, under the equity
method of accounting.  In such cases, the Partnership's original investments are
recorded  at  cost  and  adjusted   for  its  share  of  earnings,   losses  and
distributions.  The Partnership accounts for investments in joint ventures where
the  Partnership  has  virtually no influence  over  financial  and  operational
matters using the cost method of accounting.  In such cases,  the  Partnership's
original  investments  are recorded at cost and any  distributions  received are
recorded in operations.  All of the Partnership's  investments in joint ventures
are subject to its impairment review policies.

     In joint ventures where the  Partnership's  ownership  interest is majority
owned,  minority interest represents the minority owner's proportionate share of
its equity in the joint  venture.  The  minority  interest is  adjusted  for the
minority  owner's share of the earnings,  losses and  distributions of the joint
venture.

(2)    Organization

     The  Partnership  was  formed on  February  7, 2000 as a  Delaware  limited
partnership. The Partnership is engaged in one business segment, the business of
acquiring  equipment  subject  to  lease  and,  to a  lesser  degree,  acquiring
ownership rights to items of equipment at lease expiration. The Partnership will
continue until December 31, 2017, unless terminated sooner.

     The General  Partner of the Partnership is ICON Capital Corp. (the "General
Partner"), a Connecticut  corporation.  The General Partner manages and controls
the business affairs, including, but not limited to, the Partnership's equipment
leases and financing transactions under the terms of a management agreement with
the  Partnership.  Additionally,  the  General  Partner has a 1% interest in the
profits, losses, cash distributions and liquidation proceeds of the Partnership.

                                       7
<PAGE>
                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(2)    Organization - continued

     The  Partnership  invested  most of the net  proceeds  from its offering in
items of equipment that are subject to a lease.  After the net offering proceeds
were invested, additional investments were made with the cash generated from the
Partnership's  initial  investments  to the  extent  that cash is not needed for
expenses,  reserves and distributions to partners.  The investment in additional
equipment in this manner is called  "reinvestment."  The  Partnership  purchases
equipment  from time to time  until  five  years  from the date the  Partnership
completed its  offering.  This time frame is called the  "reinvestment  period,"
which the Partnership  anticipates  will end on or about October 16, 2006. After
the  reinvestment  period,  the Partnership will begin selling its assets in the
ordinary course of business during a time frame called the "liquidation period."

     Partners'   capital  accounts  are  increased  for  their  initial  capital
contribution plus their  proportionate  share of earnings and decreased by their
proportionate  share  of  losses  and  distributions.   Profits,   losses,  cash
distributions and liquidation proceeds are allocated 99% to the limited partners
and 1% to the General  Partner  until each  limited  partner has  received  cash
distributions  and  liquidation  proceeds  sufficient  to reduce their  adjusted
capital   contribution   account  to  zero  and  receive,  in  addition,   other
distributions  and  allocations  which would  provide an 8% per year  cumulative
return on their outstanding  adjusted capital contribution  account.  After such
time, distributions will be allocated 90% to the limited partners and 10% to the
General Partner.

     Certain  reclassifications  have  been made to the  accompanying  condensed
consolidated financial statements for the three and six month periods ended June
30, 2005 to conform to the current period presentation.

(3)    Use of Estimates

     The  preparation  of financial  statements  in conformity  with  accounting
principles  generally  accepted  in the United  States of America  requires  the
General  Partner to make  estimates  and  assumptions  that affect the  reported
amounts of assets and  liabilities  and the disclosure of contingent  assets and
liabilities as of the date of the financial  statements and the reported amounts
of revenues and expenses  during the  reporting  period.  Significant  estimates
primarily include the allowance for doubtful accounts and unguaranteed  residual
values. Actual results could differ from those estimates.

(4)    Investments in Finance Leases

     On April 30, 2006 and May 31, 2006,  two of the  Partnership's  leases with
K-Mart Corporation  ("K-Mart") expired and, pursuant to the terms of the leases,
they have been extended for an additional 90 days.  The  Partnership is treating
these leases as  month-to-month  leases  beginning on May 1, 2006 and on June 1,
2006, respectively.  Accordingly, the Partnership has reclassified approximately
$285,000 and $119,000,  respectively,  of the  unguaranteed  residual  values of
these expired  leases to  investments  in operating  leases.  A third lease with
K-Mart,  which was set to expire on August 31,  2006,  has been  extended for an
additional 90 days.

                                       8
<PAGE>
                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(5)    Investments in Operating Leases

     Investments  in operating  leases consist of the following at June 30, 2006
and December 31, 2005:

<TABLE>
<CAPTION>
                                                                    (Unaudited)
                                                                      June 30,       December 31,
                                                                        2006             2005
                                                                   -------------    --------------
<S>                                                                <C>              <C>
 Aircraft and aircraft related equipment                           $ 109,780,975    $  109,780,975
 Digital mini photo labs                                                 403,565                 -
 Material handling, telecommunication, over the road rolling
      stock, manufacturing and computer equipment                      4,024,451         8,374,002
                                                                   -------------    --------------

                                                                     114,208,991       118,154,977
 Less: accumulated depreciation                                      (42,395,399)      (41,174,571)
                                                                   -------------    --------------
                                                                   $  71,813,592    $   76,980,406
                                                                   =============    ==============
</TABLE>
     On March 14, 2006,  the  Partnership  entered into a lease  extension  with
Cathay Pacific  Airways Limited  ("Cathay") with respect to an Airbus  A340-313X
aircraft  that is 100% owned by the  Partnership,  through an owner  trust.  The
original  lease with  Cathay was  scheduled  to expire on March 14, 2006 and has
been extended until October 1, 2011.

     Simultaneously  with the lease  extension,  the Partnership  refinanced the
non-recourse debt associated with the aircraft which was originally due on March
14,  2006 and  required a balloon  payment  of  approximately  $52,850,000.  The
Partnership  established,  under the original lease, a reserve account  totaling
$281,868  which was used to reduce  the  balloon  payment  to  $52,568,132.  The
Partnership  refinanced  $52,568,132,  which  accrues  interest  at  the  London
Interbank Offered Rate ("LIBOR") plus 1.165% (which was 6.65% at June 30, 2006),
matures  on  October  1,  2011  and  has  a  balloon  payment  of  approximately
$32,000,000. The variable interest rate of the refinanced non-recourse debt will
be fixed  automatically  under the debt agreement on September 14, 2006. At June
30, 2006, the outstanding balance of the non-recourse debt was $51,349,375.

     The Partnership has a commitment with respect to the Cathay aircraft to pay
50% of the maintenance  overhaul costs, which were incurred on or prior to March
14, 2006. The Partnership  has  established a maintenance  reserve cash account,
which totaled approximately  $1,354,000 at June 30, 2006, to pay for its portion
of these  costs.  This  account was funded in  accordance  with the terms of the
original  lease.  For the three and six month periods  ended June 30, 2006,  the
Partnership  accrued an  estimated  amount of its  portion of the  non-recurring
maintenance   overhaul  costs  of  approximately   $278,000  and   approximately
$1,153,000,  respectively.  Any  excess  cash  remaining  after the  maintenance
overhaul  is  performed  will be used to pay down the  principal  balance of the
related non-recourse debt.

     Non-cancelable minimum annual rentals due from investments operating leases
are as follows at June 30, 2006:

   Year Ending
    June 30,
   ------------
      2007                    $  13,028,000
      2008                    $   7,279,000
      2009                    $   6,540,000
      2010                    $   6,340,000
      2011                    $   5,940,000

(6)    Joint Ventures

     The joint venture described below is not consolidated by the Partnership.

                                       9
<PAGE>

                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(6)    Joint Ventures - continued

ICON Aircraft 126, LLC

     The Partnership  along with ICON Income Fund Nine, LLC ("Fund Nine") formed
ICON  Aircraft  126 LLC ("ICON  126") for the  purpose of  acquiring  all of the
outstanding  shares  of Delta  Aircraft  Leasing  Limited  ("D.A.L."),  a Cayman
Islands  registered  company,  which  owns,  through an Owner  Trust,  an Airbus
A340-313X  aircraft which was on lease to Cathay through March 2006 and has been
extended until July 1, 2011. The  Partnership  and Fund Nine each have ownership
interests of 50% in ICON 126. ICON 126 consolidates  the financial  position and
operations of D.A.L. in its consolidated financial statements.

     Simultaneously   with  the  lease   extension,   ICON  126  refinanced  the
non-recourse  debt associated with the aircraft which was scheduled to mature on
March 27, 2006 and had a balloon payment of approximately $52,850,000.  ICON 126
established,  under the original  lease, a reserve  account  totaling  $582,509,
which was used to reduce the balloon payment to $52,267,491. ICON 126 refinanced
$52,267,491,  which  accrues  interest at LIBOR plus 1.165%  (which was 6.65% at
June  30,  2006),  matures  on  July  1,  2011  and  has a  balloon  payment  of
approximately  $32,000,000.  The variable  interest rate of the refinanced  debt
will be fixed automatically under the debt agreement on September 27, 2006.

     ICON 126 has a commitment with respect to its Cathay aircraft to pay 50% of
the  maintenance  overhaul  costs,  which were incurred on or prior to March 27,
2006. ICON 126 has established a maintenance reserve cash account, which totaled
approximately $1,354,000 at June 30, 2006 to pay for its portion of these costs.
This account was funded in accordance with the terms of the original lease.  For
the six month period ended June 30, 2006,  ICON 126 accrued an estimated  amount
of its portion of the non-recurring  maintenance overhaul costs of approximately
$1,100,000.  Any  excess  cash  remaining  after  the  maintenance  overhaul  is
performed  will  be  used to pay  down  the  principal  balance  of the  related
non-recourse debt.

(7)  Notes Payable Non-recourse

     Principal  maturities of the  Partnership's  notes  payable -  non-recourse
consisted of following at June 30, 2006:

  Year Ending
   June 30,
  -----------
    2007                $ 9,064,000
    2008                $ 3,561,000
    2009                $ 3,804,000
    2010                $ 3,904,000
    2011                $ 3,695,000

(8)   Revolving Loan Facility

     On  August  31,  2005,  the  Partnership,  together  with  certain  of  its
affiliates (entities sponsored and organized by the General Partner), Fund Nine,
ICON Income Fund Ten,  LLC and ICON Leasing  Fund  Eleven,  LLC ("Fund  Eleven")
(collectively,  the  "Borrowers")  entered into a Commercial Loan Agreement (the
"Agreement"),  with  California  Bank &  Trust  (the  "Lender").  The  Agreement
provides  for a  revolving  line of credit of up to  $17,000,000  pursuant  to a
senior secured  revolving loan facility (the "Facility") which is secured by all
assets of the Borrowers not subject to a first  priority lien, as defined in the
Agreement. Each of the Borrowers is jointly and severally liable for all amounts
borrowed under the Facility.

     In accordance with the terms and conditions of the Agreement, the Borrowers
are required to comply with certain financial  covenants,  including,  a minimum
debt  coverage  ratio,  a tangible net worth  covenant,  a leverage  ratio and a
minimum liquidity covenant. The Borrowers are in compliance with these covenants
at June 30, 2006. The Agreement prohibits the Borrowers from declaring or paying
any  distributions  to investors if such a payment  would cause the Borrowers to
become non-compliant with the financial covenants in the Agreement.

                                       10
<PAGE>

                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(8)    Revolving Loan Facility - continued

     In addition,  on August 31, 2005, the Borrowers entered into a Contribution
Agreement (the "Contribution  Agreement"),  pursuant to which the Borrowers have
agreed to certain  restrictions  on the  amounts  and terms of their  respective
borrowings  under the  Facility  in order to  minimize  the risk that a Borrower
would be unable to repay its portion of the  outstanding  obligations  under the
Facility  at any time.  These  restrictions  include,  but are not  limited  to,
borrowing  in  excess  of the  lesser  of  (a) an  amount  each  Borrower  could
reasonably  expect to repay in one year from its projected cash flow, or (b) the
greater of (i) the borrowing  base, as defined in the  Agreement,  as applied to
such Borrower and (ii) 50% of the net worth of such Borrower.

     The Contribution Agreement also provides that, in the event a Borrower pays
an amount under the  Contribution  Agreement in excess of its share of the total
obligations  under the  Facility,  whether  by reason of an event of  default or
otherwise,  the other Borrowers will immediately make a contribution  payment to
such Borrower and in such amount that the aggregate amount paid by each Borrower
reflects its allocable  share of the aggregate  obligations  under the Facility.
The Borrowers'  obligations to each other under the  Contribution  Agreement are
collateralized by a subordinate lien on the assets of each Borrower.

     Under the terms of the Agreement,  the Borrowers are required to maintain a
cash reserve with the Lender  representing 20% of all outstanding  advances plus
all pending  advances.  Fund Eleven has  established  an interest  bearing  cash
account with the Lender totaling  $359,000 at June 30, 2006, which satisfies the
Lender's cash reserve requirement for all the Borrowers.

     At June 30, 2006,  aggregate borrowings by all Borrowers under the Facility
amounted to $1,795,000, of which the Partnership currently has the entire amount
outstanding under the Facility.

(9)    Transactions with Related Parties

     Prior  to May 1,  2006,  in  accordance  with the  terms of the  management
agreement,  the Partnership paid the General Partner (i) management fees ranging
from 1% to 7% based on a percentage of the rentals  received  either directly by
the Partnership or through joint ventures and (ii) acquisition fees, through the
reinvestment  period, of 3% of the gross value of the Partnership's  acquisition
transactions. In addition, the General Partner was reimbursed for administrative
expenses incurred in connection with the Partnership's operations. Effective May
1, 2006, the General Partner has waived its rights to future management fees and
administrative expense reimbursements.

     The General Partner performs certain services relating to the management of
our equipment leasing activities.  Such services include the collection of lease
payments from the lessees of the  equipment,  re-leasing  services in connection
with equipment  which is off-lease,  inspections of the equipment,  liaison with
and  general  supervision  of  lessees  to assure  that the  equipment  is being
properly operated and maintained, monitoring performance by the lessees of their
obligations under the leases and the payment of operating expenses.

     Administrative  expense  reimbursements  are costs  incurred by the General
Partner and necessary to the Partnership's  operations.  These costs include the
General  Partner's  legal,   accounting,   investor   relations  and  operations
personnel,  as well as professional fees and other costs that are charged to the
Partnership  based upon the  percentage of time such  personnel  dedicate to the
Partnership.  Excluded are salary and related costs,  travel  expenses and other
administrative  costs incurred by individuals with a controlling interest in the
General Partner.

                                       11
<PAGE>

                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
              Notes To Condensed Consolidated Financial Statements
                                  June 30, 2006
                                   (Unaudited)

(9)    Transactions with Related Parties - continued

     The General  Partner also has a 1% interest in the  Partnership's  profits,
losses,  cash  distributions and liquidation  proceeds.  The Partnership paid or
accrued  distributions  to the General Partner for the six months ended June 30,
2006 of $29,990. The General Partner's interest in the Partnership's net loss or
income for the three month periods ended June 30, 2006 and 2005 was $(4,710) and
$6,861,  respectively.  The General Partner's  interest in the Partnership's net
loss or  income  for the six  month  periods  ended  June 30,  2006 and 2005 was
$(13,159) and $4,558, respectively.

     Fees and other expenses  charged to operations by the  Partnership and paid
to the General  Partner or its  affiliates  for the three and six month  periods
ended June 30, 2006 and 2005, respectively, were as follows:

<TABLE>
<CAPTION>

                                                      Three Months Ended               Six Months Ended
                                                           June 30,                        June 30,
                                                  ---------------------------   ----------------------------
                                                    2006            2005             2006             2005
                                                  ----------    -------------   -------------   ------------
<S>                                               <C>           <C>             <C>             <C>
 Management fees                                  $   55,545    $     213,409   $     410,842   $    725,104
 Administrative expense reimbursements                27,101           95,708         161,980        317,181
                                                 -----------    -------------   -------------   ------------

                                                  $   82,646    $     309,117   $     572,822   $  1,042,285
                                                  ==========    =============   =============   ============
</TABLE>

     At June 30, 2006, the  Partnership  owes $27,101 to the General Partner for
administrative expense reimbursements accrued prior to May 1, 2006.

(10)    Recent Accounting Pronouncements

     The General Partner does not believe that any recently issued,  but not yet
effective accounting pronouncements, if currently adopted, would have a material
effect on the accompanying condensed consolidated financial statements.

                                       12
<PAGE>

Item 2. General  Partner's  Discussion  and Analysis of Financial  Condition and
Results of Operations

     The  following is a  discussion  of our results of  operations  and current
financial  position.  This  discussion  should be read in  conjunction  with our
unaudited condensed consolidated financial statements and related notes included
elsewhere  in this report,  Item 1A. Risk  Factors and the audited  consolidated
financial  statements  and related  notes  included in our Annual Report on Form
10-K for the year ended December 31, 2005.

     As used in this  Quarterly  Report on Form 10-Q,  references to "we," "us,"
"our"  or  similar  terms  include  ICON  Income  Fund  Eight  B  L.P.  and  its
consolidated subsidiaries.

Forward-Looking Statements

     Certain statements within this Quarterly Report on Form 10-Q may constitute
forward-looking   statements  within  the  meaning  of  the  Private  Securities
Litigation  Reform  Act of 1995  ("PSLRA").  These  statements  are  being  made
pursuant to the PSLRA, with the intention of obtaining the benefits of the "safe
harbor"  provisions of the PSLRA,  and, other than as required by law, we assume
no  obligation  to  update  or  supplement  such   statements.   Forward-looking
statements are those that do not relate solely to historical fact. They include,
but are not limited to, any statement  that may predict,  forecast,  indicate or
imply future  results,  performance,  achievements  or events.  You can identify
these   statements  by  the  use  of  words  such  as  "may,"  "will,"  "could,"
"anticipate," "believe," "estimate," "expects," "intend," "predict" or "project"
and variations of these words or comparable words or phrases of similar meaning.
These  forward-looking  statements  reflect our current beliefs and expectations
with respect to future  events and are based on  assumptions  and are subject to
risks and  uncertainties  and other  factors  outside our control that may cause
actual results to differ materially from those projected.

Overview

     We are an equipment  leasing  business formed on February 7, 2000. We began
active  operations on June 14, 2000. We are primarily engaged in the business of
acquiring  equipment  subject  to  lease  and,  to a  lesser  degree,  acquiring
ownership rights to items of leased equipment at lease  expiration.  Some of our
equipment  leases are acquired for cash and are expected to provide current cash
flow, which we refer to as "income"  leases.  The majority of the purchase price
of our other equipment leases is financed, so these leases generate little or no
current cash flow because substantially the entire rental payments received from
a lessee are paid to a lender. For these "growth" leases, we anticipate that the
future  value of the  leased  equipment  will  exceed  the cash  portion  of the
purchase  price paid for the equipment.  We are currently in our  "reinvestment"
phase,  wherein we seek to purchase  equipment from time to time through October
2006.

     We  invested  most of the net  proceeds  from  our  offering  in  items  of
equipment  that are subject to a lease.  After the net  offering  proceeds  were
invested,  additional  investments  were made with the cash  generated  from our
initial investments to the extent that cash is not needed for expenses, reserves
and  distributions to partners.  The investment in additional  equipment in this
manner is called  "reinvestment."  We purchase equipment from time to time until
five years from the date we completed  our  offering.  This time frame is called
the "reinvestment  period," which we anticipate will end on or about October 16,
2006.  After the  reinvestment  period,  we will begin selling our assets in the
ordinary course of business during a time frame called the "liquidation period."

     At June 30, 2006, our portfolio,  which we hold either  directly or through
joint venture investments with affiliates and others,  consists primarily of the
following equipment subject to lease:

     Air Transportation Equipment:

     o    We have a 90% interest in a McDonnell  Douglas  DC-10-30F  aircraft on
          lease with Federal  Express  Corporation  with an  expiration  date of
          March 31, 2007.

                                       13
<PAGE>

     o    We have a 100%  interest in one Airbus  A340-313X  aircraft  and a 50%
          interest  in a  second  Airbus  A340-313X  aircraft,  both on lease to
          Cathay Pacific  Airways Limited  ("Cathay")  with original  expiration
          dates of March 14, 2006 and March 27, 2006,  respectively.  We entered
          into lease  extensions  with  respect to each of the Airbus  A340-313X
          aircraft  to extend  the terms of the leases  from March 14,  2006 and
          March 27, 2006 to October 1, 2011 and July 1, 2011, respectively.

     o    We have a 100% interest in five aircraft engines on lease to TWA, LLC,
          a subsidiary of American Airlines. The lease is scheduled to expire on
          May 28, 2008.

     Information Technology Equipment:

     o    We have a 100%  interest  in four lease  schedules  consisting  of 128
          Noritsu  Optical/Digital  photo processing  mini-labs subject to lease
          with  K-Mart  Corporation  ("K-Mart").  On April 30,  2006 and May 31,
          2006, two of our leases with K-Mart expired and, pursuant to the terms
          of the leases,  they have been  extended for an additional 90 days. We
          are treating these leases as month-to-month leases beginning on May 1,
          2006 and on June 1, 2006,  respectively.  A third  lease with  K-Mart,
          which was set to expire on August 31, 2006,  has been  extended for an
          additional 90 days. The remaining lease expires on January 31, 2007.

     Other Equipment:

     o    We have a 97.73% interest in ICON Cheyenne LLC. ICON Cheyenne LLC is a
          joint venture with certain  affiliates of our General  Partner,  which
          holds a portfolio of 16 active  leases with  expiration  dates through
          September 2007. The portfolio consists of over the road rolling stock,
          manufacturing equipment and materials handling equipment.

     o    We have a 74.87%  interest in ICON SPK 2023-A LLC. ICON SPK 2023-A LLC
          is a joint  venture with certain  affiliates  of our General  Partner,
          which holds a portfolio  of 13 active  leases  with  expiration  dates
          through  April  2008.  The  portfolio  consists  of various  equipment
          leases,  including material handling,  telecommunication  and computer
          equipment.

Lease and Other Significant Transactions

     K-Mart Corporation Extensions

     We have a 100% interest in four lease  schedules  consisting of 128 Noritsu
Optical/Digital  photo  processing  mini-labs  subject to lease with K-Mart.  On
April 30, 2006 and May 31,  2006,  two of our leases with  K-Mart  expired  and,
pursuant to the terms of the leases,  they have been  extended for an additional
90 days. We are treating these leases as month-to-month  leases beginning on May
1, 2006 and on June 1, 2006,  respectively.  Accordingly,  we have  reclassified
approximately $285,000 and $119,000,  respectively, of the unguaranteed residual
values of these expired leases to investments in operating leases. A third lease
with K-Mart,  which was set to expire on August 31, 2006,  has been extended for
an additional 90 days.

New Accounting Pronouncements

     The General Partner does not believe that any recently issued,  but not yet
effective accounting pronouncements, if currently adopted, would have a material
effect on the accompanying condensed consolidated financial statements.

                                       14
<PAGE>

Results  of  Operations  for the Three  Months  Ended  June 30,  2006 (the "2006
Quarter") and 2005 (the "2005 Quarter")

     We are currently in our  reinvestment  period and  anticipate  entering our
liquidation  period on or about  October 17,  2006,  unless our General  Partner
extends the reinvestment period,  which it may do, at its discretion,  for up to
an additional three years. While in the reinvestment period, we will continue to
look for equipment leases to purchase, either with cash or with a combination of
cash and  financing.  As such,  we expect our revenue will  fluctuate due to our
selling some equipment leases while purchasing other equipment  leases.  We also
expect to have gains and losses  from the sales of  equipment  during  this time
period. As for our expenses,  we anticipate  interest expense to decrease as our
outstanding debt decreases. If we enter into an equipment lease where we finance
a portion of the purchase price then interest expense will increase.

     Effective  May 1, 2006,  the  General  Partner  waived its rights to future
management fees and administrative expense reimbursements.

     Once we enter  our  liquidation  period,  we will  sell our  assets  in the
ordinary  course of business.  As we begin to sell our assets both rental income
and  finance  income will  decrease  over time as will  expenses  related to our
assets such as  depreciation  expense.  Additionally,  interest  expense  should
decrease as we reach the expiration of leases that were financed and the debt is
repaid to the lender. As leased equipment is sold, we will experience both gains
and losses on these sales.

     Revenue for the 2006 Quarter and 2005 Quarter are summarized as follows:


<TABLE>
<CAPTION>
                                                                             Three Months Ended June 30,
                                                                     -------------------------------------------
                                                                         2006           2005          Change
                                                                     -----------    ------------  --------------
<S>                                                                  <C>            <C>           <C>
 Total revenue                                                       $ 3,757,620    $  5,534,618  $   (1,776,998)
                                                                     ===========    ============  ==============


 Rental income                                                       $ 4,038,662    $  4,973,605  $     (934,943)
 Finance income                                                      $    39,503    $    172,320  $     (132,817)
 (Loss) income from investments in joint ventures                    $  (790,549)   $    124,691  $     (915,240)
 Net gain (loss) on sales of equipment                               $   466,992    $     40,676  $      426,316
 Net gain on sale of investment in unguaranteed residual values      $         -    $      4,671  $       (4,671)
 Interest and other income                                           $     3,012    $    218,655  $     (215,643)

</TABLE>

     Total  revenue for the 2006  Quarter  decreased  $1,776,998,  or 32.1%,  as
compared to the 2005 Quarter. The decrease in rental income was primarily due to
the sale, in October 2005, of a flight simulator  previously on lease to British
Aerospace,  Inc.,  which was included in rental  income for the 2005 Quarter but
not for the 2006 Quarter. In addition,  during March 2006, we extended our lease
with Cathay and the extension included a reduction in monthly rental payments of
$150,000.  The decrease in finance income was consistent with the lease terms of
our  finance  leases and we expect the income to  continue to decrease as we get
closer to the expiration of our finance  leases.  The decrease in our net income
from  investments  in joint  ventures was primarily  due to the lease  extension
completed  during  March  2006,  which  reduced  the rental  income of our joint
venture,  ICON 126, LLC, whose sole asset is an Airbus A340-313X  aircraft.  The
increase in net gain on sales of equipment is primarily  due to equipment  sales
in two of our  majority  owned  joint  ventures,  ICON  Cheyenne,  LLC and  ICON
SPK-2023 A LLC.

     Expenses  for the 2006  Quarter  and the 2005  Quarter  are  summarized  as
follows:

<TABLE>
<CAPTION>

                                                                              Three Months Ended June 30,
                                                                     -------------------------------------------
                                                                         2006           2005         Change
                                                                     -----------    ------------  --------------
<S>                                                                  <C>            <C>           <C>
 Total expenses                                                      $ 4,228,623    $  4,848,491  $     (619,868)
                                                                     ===========    ============  ==============

 Depreciation and amortization                                       $ 2,798,977    $  3,338,121  $     (539,144)
 Interest                                                            $   888,822    $  1,114,409  $     (225,587)
 Maintenance expense                                                 $   277,698    $          -  $      277,698
 Management fees - General Partner                                   $    55,545    $    213,409  $     (157,864)
 Administrative expense reimbursements - General Partner             $    27,101    $     95,708  $      (68,607)
 General and administrative                                          $   153,422    $     58,176  $       95,246
 Minority interest                                                   $    27,058    $     28,668  $       (1,610)

</TABLE>

                                       15
<PAGE>

     Total expenses for the 2006 Quarter decreased $619,868,  or 12.8%, from the
2005  Quarter.  The decrease in  depreciation  and  amortization  was  primarily
attributable  to the sales of equipment  in several of our majority  owned joint
ventures,  ICON Cheyenne, LLC and ICON SPK-2023A,  LLC during 2005. The decrease
in  interest  expense  was  primarily   attributable  to  our  decrease  in  the
outstanding  balance of our  non-recourse  debt.  The  increase  in  maintenance
expense,  which is a one-time charge,  was due solely to a required  maintenance
overhaul of our Airbus A340-313X aircraft.  The decrease of both management fees
- General Partner and administrative expense reimbursements - General Partner is
due to our  General  Partner's  decision,  effective  May 1, 2006,  to waive all
future management fees and administrative expense reimbursements.  Such services
include the  collection of lease payments from lessees,  re-leasing  services in
connection  with  equipment  which is off-lease,  inspections  of the equipment,
liaison with and general  supervision of lessees to assure that the equipment is
being properly operated and maintained, monitoring performance by the lessees of
their obligations under the leases and the payment of operating expenses.

Net (Loss) Income

     As a result of the  foregoing  factors,  the net loss for 2006  Quarter was
$(471,003), as compared to net income for 2005 Quarter of $686,127. The net loss
per weighted  average number of limited  partnership  units  outstanding for the
2006 Quarter was $(0.63) as compared to net income per weighted  average  number
of limited partnership units outstanding for 2005 Quarter of $0.91.

Results of Operations for the Six Months Ended June 30, 2006 (the "2006 Period")
and 2005 (the "2005 Period")

     Revenue for the 2006 Period and 2005 Period are summarized as follows:

<TABLE>
<CAPTION>
                                                                              Six Months Ended June 30,
                                                                     -------------------------------------------
                                                                         2006            2005         Change
                                                                     -----------    ------------  --------------
<S>                                                                  <C>            <C>           <C>
 Total revenue                                                       $ 7,810,339    $ 11,148,846  $   (3,338,507)
                                                                     ===========    ============  ===============

 Rental income                                                       $ 8,183,025    $ 10,112,212  $   (1,929,187)
 Finance income                                                      $   104,081    $    370,848  $     (266,767)
 (Loss) income from investments in joint ventures                    $  (994,408)   $    264,087  $   (1,258,495)
 Net gain (loss) on sales of equipment                               $   446,313    $   (137,053) $      583,366
 Net gain on sale of investment in unguaranteed residual values      $        -     $    320,097  $     (320,097)
 Interest and other income                                           $    71,328    $    218,655  $     (147,327)

</TABLE>

     Total  revenue  for the 2006  Period  decreased  $3,338,507,  or 29.9%,  as
compared to the 2005 Period.  The decrease in rental income was primarily due to
the sale, in October 2005, of a flight simulator  previously on lease to British
Aerospace, Inc., which was included in rental income for the 2005 Period but not
for the 2006 Period. In addition,  during March 2006, we extended our lease with
Cathay and the  extension  included a reduction  in monthly  rental  payments of
$150,000.  The decrease in finance income was consistent with the lease terms of
our  finance  leases and we expect the income to  continue to decrease as we get
closer to the expiration of our finance  leases.  The decrease in our net income
from  investments  in joint  ventures  was  partially  due the  lease  extension
completed  during  March  2006,  which  reduced  the rental  income of our joint
venture,  ICON 126,  LLC,  whose  sole  asset is an Airbus  A340-313X  aircraft.
Additionally,  ICON 126, LLC incurred a one-time charge for maintenance overhaul
costs of approximately  $1,153,000 for the 2006 Period. The increase in net gain
on sales of equipment is primarily due to equipment sales in two of our majority
owned joint ventures, ICON Cheyenne, LLC and ICON SPK-2023 A LLC.

                                       16
<PAGE>

     Expenses for the 2006 Period and the 2005 Period are summarized as follows:

<TABLE>
<CAPTION>
                                                                               Six Months Ended June 30,
                                                                     -------------------------------------------
                                                                         2006           2005          Change
                                                                     -----------    ------------  --------------
<S>                                                                  <C>            <C>           <C>
 Total expenses                                                      $ 9,126,273    $ 10,693,072  $   (1,566,799)
                                                                     ===========    ============  ==============

 Depreciation and amortization                                       $ 5,259,692    $  6,763,295  $   (1,503,603)
 Interest                                                            $ 1,742,569    $  2,265,131  $     (522,562)
 Maintenance expense                                                 $ 1,152,698    $         -   $    1,152,698
 Management fees - General Partner                                   $   410,842    $    725,104  $     (314,262)
 Administrative expense reimbursements - General Partner             $   161,980    $    317,181  $     (155,201)
 General and administrative                                          $   346,050    $    560,449  $     (214,399)
 Minority interest                                                   $    52,442    $     61,912  $       (9,470)

</TABLE>

     Total expenses for the 2006 Period decreased $1,566,799, or 14.7%, from the
2005  Period.  The  decrease in  depreciation  and  amortization  was  primarily
attributable  to the sales of equipment  in several of our majority  owned joint
ventures,  ICON Cheyenne, LLC and ICON SPK 2023-A, LLC during 2005. The decrease
in  interest  expense  was  primarily   attributable  to  the  decrease  in  the
outstanding  balance of our  non-recourse  debt  between the 2006 Period and the
2005 Period.  The increase in maintenance  expense,  which is a one-time charge,
was due solely to required  maintenance  overhaul  costs  incurred on our Airbus
A340-313X  aircraft.  The decrease of both management fees - General Partner and
administrative  expense  reimbursements  - General Partner is due to our General
Partner's  decision,  effective May 1, 2006, to waive all future management fees
and administrative expense reimbursements.  Such services include the collection
of lease payments from lessees, re-leasing services in connection with equipment
which is  off-lease,  inspections  of the  equipment,  liaison  with and general
supervision of lessees to assure that the equipment is being  properly  operated
and maintained, monitoring performance by the lessees of their obligations under
the leases and the payment of  operating  expenses.  The decrease in general and
administrative  is due to primarily to a decrease in professional  fees incurred
during the 2005  Period  relating  to the K-Mart  litigation,  which was settled
during June 2005.

Net (Loss) Income

     As a result of the  foregoing  factors,  the net loss for 2006  Period  was
$(1,315,934),  as compared to net income for 2005  Period of  $455,774.  The net
loss per weighted average number of limited  partnership  units  outstanding for
the 2006 Period was  $(1.76),  as compared  to net income per  weighted  average
number of limited partnership units outstanding for 2005 Period of $0.61.

Liquidity and Capital Resources

Sources and Uses of Cash

     At  June  30,  2006,  we had  cash  and  cash  equivalents  of  $1,231,241.
Historically, our main source of cash is from investing activities. Our main use
of cash is for  financing  activities in the form of cash  distributions  to our
partners.

     Our main  sources  of cash  during  the 2006  Period  were  primarily  from
financing activities,  investing activities and operating  activities.  Our main
source of cash from financing  activities was from the proceeds we received from
our  recourse  debt of  approximately  $1,795,000.  Our main source of cash from
investing activities was approximately $836,000 from the sales of equipment. Our
net cash from operating  activities was approximately  $1,011,000,  of which the
collection of principal  payments from our finance leases totaled  approximately
$427,000.

     Our main uses of cash during the 2006 Period were for financing  activities
and investing  activities.  Our primary use of cash for financing activities was
distribution  payments  to our  partners  of  approximately  $2,989,000  and the
redemption of limited partnership units of approximately  $51,000.  Our main use
of cash for  investing  activities  was  distribution  payments to the  minority
owners  of  our  joint  ventures  of  approximately  $219,000.

                                       17
<PAGE>

Financings and Borrowings

      Non-Recourse Debt

     We have non-recourse debt at June 30, 2006 of $57,410,506. Our non-recourse
debt consists of notes payable in which the lenders have a security  interest in
the equipment and an assignment  of the rental  payments  under the leases.  The
lenders  are  being  paid  directly  by  the  lessees.   Our  non-recourse  debt
obligations  accrue interest at rates ranging from 4.035% per year to 9.489% per
year.

     Revolving Credit Facility

     On August 31, 2005, we,  together with certain of our affiliates  (entities
sponsored  and  organized by the General  Partner),  ICON Income Fund Nine,  LLC
("Fund  Nine"),  ICON Income Fund Ten,  LLC ("Fund  Ten") and ICON  Leasing Fund
Eleven,  LLC ("Fund  Eleven")  (collectively,  the  "Borrowers")  entered into a
Commercial  Loan Agreement (the  "Agreement")  with California Bank & Trust (the
"Lender").  The  Agreement  provides  for a  revolving  line of  credit of up to
$17,000,000   pursuant  to  a  senior  secured   revolving  loan  facility  (the
"Facility")  which is secured by all assets of the  Borrowers  not  subject to a
first  priority  lien,  as defined in the  Agreement.  Each of the  Borrowers is
jointly  and  severally  liable for all  amounts  borrowed  under the  Facility.
Amounts  available  under the Facility  are subject to a borrowing  base that is
determined,  subject to certain  limitations,  based on the present value of the
future  receivables under certain lease agreements in which the Borrowers have a
beneficial  interest.  The interest rate on any advances made under the Facility
is the  Lender's  prime  rate plus  0.25% per year  (which  was 8.5% at June 30,
2006). In accordance  with the Agreement,  the Borrowers may elect to have up to
five separate  advances under the Facility each made at the rate at which United
States  dollar  deposits  can be acquired by the Lender in the London  Interbank
Eurocurrency  Market,  plus 2.75% per year.  The Facility  expires on August 31,
2007 unless  renewed by the Borrowers  for an  additional  one year term, in the
sole discretion of the Lender.

     As part of the  Agreement the Borrowers are required to comply with certain
financial  covenants,  including,  a minimum debt coverage ratio, a tangible net
worth covenant, a leverage ratio and a minimum liquidity covenant. The Borrowers
are in compliance with these covenants at June 30, 2006. The Agreement prohibits
the Borrowers from declaring or paying any  distribution  to investors if such a
payment  would cause the  Borrowers to become  non-compliant  with the financial
covenants in the Agreement.

     In addition,  on August 31, 2005, the Borrowers entered into a Contribution
Agreement (the "Contribution  Agreement"),  pursuant to which the Borrowers have
agreed to certain  restrictions  on the  amounts  and terms of their  respective
borrowings  under the  Facility  in order to  minimize  the risk that a Borrower
would be unable to repay its portion of the  outstanding  obligations  under the
Facility  at any time.  These  restrictions  include,  but are not  limited  to,
borrowing  in  excess  of the  lesser  of  (a) an  amount  each  Borrower  could
reasonably  expect to repay in one year from its projected cash flow, or (b) the
greater of (i) the borrowing  base, as defined in the  Agreement,  as applied to
such Borrower and (ii) 50% of the net worth of such Borrower.  The  Contribution
Agreement  also provides  that, in the event a Borrower pays an amount under the
Contribution Agreement in excess of its share of the total obligations under the
Facility,  whether  by reason of an event of  default  or  otherwise,  the other
Borrowers will immediately  make a contribution  payment to such Borrower and in
such  amount  that the  aggregate  amount  paid by each  Borrower  reflects  its
allocable share of the aggregate obligations under the Facility.  The Borrowers'
obligations to each other under the Contribution Agreement are collateralized by
a subordinate lien on the assets of each Borrower.

     Under the terms of the Agreement,  the Borrowers are required to maintain a
cash reserve with the Lender  representing 20% of all outstanding  advances plus
all pending  advances.  Fund Eleven has  established  an interest  bearing  cash
account with the Lender totaling  $359,000 at June 30, 2006, which satisfies the
Lender's cash reserve requirement for all the Borrowers.

                                       18
<PAGE>

     At June 30, 2006,  aggregate borrowings by all Borrowers under the Facility
amounted to $1,795,000, of which we currently have all amounts outstanding under
the Facility.

     Our  General  Partner  believes  that  with  the  cash  we  have  currently
available,  cash being generated from our leases,  cash  distributions  from our
joint ventures, proceeds from equipment sales and available borrowings under our
Facility,   we  have  sufficient  cash  to  continue  our  operations  into  the
foreseeable  future.  However,  our  ability to  generate  cash in the future is
subject  to  general  economic,  financial,  competitive,  regulatory  and other
factors that affect our lessees' businesses that are beyond our control.

Distributions

     We pay monthly  distributions  to our limited  partners  beginning with the
first month after the limited partners' admission through the termination of the
operating  period,  which we anticipate will be on or about October 16, 2006. We
paid  distributions  to our limited  partners  for the six months ended June 30,
2006 of $2,969,057.  We paid or accrued distributions to our General Partner for
the six months ended June 30, 2006 of $29,990.

Contractual Obligations and Commitments and Off Balance Sheet Transactions

     We refinanced the  non-recourse  debt associated with our 100% owned Cathay
aircraft  which was  originally  due on March 14,  2006 and  required  a balloon
payment of approximately $52,850,000. We established,  under the original lease,
a reserve account totaling $281,868 which was used to reduce the balloon payment
to $52,568,132. We refinanced $52,568,132,  which accrues interest at LIBOR plus
1.165% (which was 6.65% at June 30, 2006),  matures on October 1, 2011 and has a
balloon payment of approximately $32,000,000.  The variable interest rate of the
refinanced  non-recourse  debt  will  be  fixed  automatically  under  the  debt
agreement on September 14, 2006. At June 30, 2006,  the  outstanding  balance of
the  non-recourse  debt was  $51,349,375.  We do not have any off balance  sheet
transactions.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

     We, like most other companies,  are exposed to certain market risks,  which
includes changes in interest rates and the demand for equipment (and the related
residuals)  owned by us. We believe  that our  exposure to other  market  risks,
including foreign currency  exchange rate risk,  commodity risk and equity price
risk, are  insignificant,  at this time, to both our financial  position and our
results  of  operations.  Other  than as  described  below,  there were no other
material  changes to the  disclosure  related to these items since the filing of
our Annual Report on Form 10-K for the year ended December 31, 2005.

     Our Facility and the  non-recourse  debt  obligations  associated  with the
Cathay  aircrafts  carry  floating  interest  rates  that are tied to the London
Interbank  Offered  Rate and the prime rate and,  therefore,  our  statement  of
income and our cash flows will be exposed to changes in  interest  rates.  A one
percentage  point  increase in LIBOR  would  cause an  increase to our  interest
expense of approximately $500,000. We historically have engaged in interest rate
hedging activities related to our floating rate debt.

Item 4.  Controls and Procedures

Evaluation of disclosure controls and procedures

     In connection  with the  preparation of this Quarterly  Report on Form 10-Q
for the period  ended June 30, 2006,  as well as the  financial  statements  and
Quarterly  Reports  on Form  10-Q for the  period  ended  June 30,  2006 for our
affiliates, our General Partner carried out an evaluation, under the supervision
and with the  participation of the management of our General Partner,  including
its Chief Executive Officer and the Principal  Financial and Accounting Officer,
of the  effectiveness  of the  design and  operation  of our  General  Partner's
disclosure  controls and  procedures as of the end of the period covered by this
report pursuant to the Securities  Exchange Act of 1934.  Based on the foregoing
evaluation, except as noted below, the Chief Executive Officer and the Principal
Financial and Accounting Officer concluded that our General Partner's disclosure
controls and procedures were effective.

                                       19
<PAGE>

     While evaluating our General Partner's  disclosure controls and procedures,
our General Partner recognized that greater internal controls were needed to aid
in a more efficient closing of our financial  statements,  thereby requiring our
General  Partner to hire  additional  skilled  accounting  staff to support  the
senior vice president of accounting  hired by our General  Partner at the end of
the third quarter of 2004. In addition, our General Partner hired two additional
accounting  staff members during 2005 who are certified  public  accountants and
are  experienced  with  public  reporting  entities.  Our General  Partner  will
continue to evaluate its disclosure  controls and procedures to determine  their
effectiveness  and  adequacy and will take the steps  necessary,  in our General
Partner's  opinion,  to ensure the adequacy of our General Partner's  disclosure
controls and procedures.

     In designing and evaluating our General Partner's  disclosure  controls and
procedures,   our  General  Partner  recognized  that  disclosure  controls  and
procedures,  no  matter  how well  conceived  and  operated,  can  provide  only
reasonable,  not  absolute,  assurance  that the  objectives  of the  disclosure
controls and procedures are met. Our General Partner's  disclosure  controls and
procedures have been designed to meet reasonable assurance standards. Disclosure
controls  and  procedures  cannot  detect or prevent  all error and fraud.  Some
inherent  limitations  in disclosure  controls and  procedures  include costs of
implementation, faulty decision-making,  simple error and mistake. Additionally,
controls  can be  circumvented  by the  individual  acts  of  some  persons,  by
collusion of two or more people, or by management override of the controls.  The
design of any system of controls is based,  in part,  upon  certain  assumptions
about the  likelihood of future  events,  and there can be no assurance that any
design will succeed in  achieving  its stated  goals under all  anticipated  and
unanticipated  future  conditions.  Over time,  controls  may become  inadequate
because of changes in conditions,  or the degree of compliance with  established
policies or procedures.

     Our General Partner's Chief Executive  Officer and Principal  Financial and
Accounting  Officer have determined that no weakness in disclosure  controls and
procedures  had any  material  effect on the accuracy  and  completeness  of our
financial reporting and disclosure included in this report.

                           PART II - OTHER INFORMATION

Item 1 - Legal Proceedings

     In the ordinary  course of conducting  our  business,  there may be certain
claims, suits and complaints filed against us. In the opinion of management, the
outcome  of such  matters,  if any,  will  not  have a  material  impact  on our
consolidated  financial  position or results of  operations.  No material  legal
proceedings are currently pending or to our knowledge  threatened  against us or
against any of our assets.

Item 1A. Risk Factors

     Other  than with  respect  to the risk  factor  below,  there  have been no
material  changes from the risk factors  disclosed in "Item 1A. Risk Factors" of
our Annual  Report on Form 10-K for the year ended  December 31, 2005.  The risk
factor  presented below should be read in conjunction  with the risk factors and
information disclosed in our Annual Report on Form 10-K.

Because  we will  borrow  to  purchase  equipment,  losses as a result of lessee
defaults may be greater than if debt were not incurred.  Restrictions imposed by
the terms of our indebtedness may limit our financial flexibility.

                                       20
<PAGE>

     Although  we expect to acquire  some of our  investments  for cash,  we are
likely to borrow a  substantial  portion of the purchase  price of our equipment
investments  and there is no limit to the  amount  of debt that may be  incurred
when purchasing  equipment.  While we believe the use of leverage will result in
us being  able to make more  acquisitions  and that each  acquisition  will have
fewer  dollars  at risk  than if  leverage  were not  utilized,  there can be no
assurance that the benefits of greater size and diversification of the portfolio
will offset the heightened risk of loss in an individual lease transaction using
leverage. With respect to non-recourse  borrowings, a lessee default could force
us to make debt service  payments so as to protect our  investment  in equipment
and prevent us from being subject to repossession.

     We  together  with  certain  of  our  affiliates  (entities  sponsored  and
organized by our General Partner), Fund Nine, Fund Ten and Fund Eleven are party
to a commercial  loan agreement (the "Loan  Agreement")  with  California Bank &
Trust.   The  terms  of  our  Loan  Agreement  could  restrict  us  from  paying
distributions  to  investors  if  such  payments  would  cause  us  not to be in
compliance  with  our  financial  covenants.  See  "Item  2.  General  Partner's
Discussion  and  Analysis of  Financial  Condition  and Results of  Operations -
Liquidity and Capital Resources."

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

     Our General  Partner  consented to us redeeming  1,300 limited  partnership
units during the 2006 Period. The redemption amounts are calculated according to
a specified  redemption  formula in accordance with the  partnership  agreement.
Redeemed  units  have no voting  rights and do not share in  distributions.  The
partnership  agreement limits the number of limited  partnership units which can
be redeemed in any one year and redeemed  limited  partnership  units may not be
reissued. The following table details our limited partnership unit redemptions:


                                             Total Number of
                                             Limited Partner     Price Paid Per
                                                  Units         Limited Partner
                                                Redeemed             Units
                                           -------------------  ---------------
 January 1, 2006 through January 31, 2006      $            -   $            -
 February 1, 2006 through February 28, 2006              1,050           42.77
 March 1, 2006 through March 31, 2006                       -
 April 1, 2006 through April 30, 2006                       -
 May 1, 2006 thorugh May 31, 2006                          250           24.90
 June 1, 2006 through June 30, 2006                         -                -
                                               ---------------  ---------------
                                                         1,300  $        39.33
                                               ===============  ===============

Item 3.  Defaults Upon Senior Securities

         Not applicable.

Item 4.  Submission of Matters To A Vote Of Security Holders

         No matters were submitted to a vote of security holders during the 2006
Quarter.

Item 5.  Other Information

         Not applicable.

Item 6.  Exhibits

          31.1 Rule 13a-14(a)/15d-14(a) certifications.

          31.2 Rule 13a-14(a)/15d-14(a) certifications.

          32.1 Certification  pursuant to 18 U.S.C. ss.1350, as adopted pursuant
               to Section 906 of the Sarbanes-Oxley Act of 2002.

          32.2 Certification  pursuant to 18 U.S.C. ss.1350, as adopted pursuant
               to Section 906 of the Sarbanes-Oxley Act of 2002.

                                       21
<PAGE>

                                   SIGNATURES

Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  Partnership  has duly  caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

ICON Income Fund Eight B L.P.  (Registrant) By its General Partner, ICON Capital
Corp.

Date: August 21, 2006

/s/ Beaufort J.B. Clarke
----------------------------------
Beaufort J.B. Clarke
Chairman, Chief Executive Officer and Director
(Principal Executive Officer)

Date: August 21, 2006

/s/ Thomas W. Martin
----------------------------------
Thomas W. Martin
Chief Operating Officer and Chief Financial Officer
(Principal Financial and Accounting Officer)

                                       22