**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
            **September
                30, 2007**





[  ]           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 incorporation or organization)
            (IRS
                Employer Identification Number)





**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 October 31, 2007
      is
      740,530.















ICON
                Income Fund Eight B L.P.
              Table
                of ContentsPART
                I - FINANCIAL INFORMATION
            PageItem
                1.  Condensed Consolidated Financial
                StatementsCondensed
                Consolidated Balance Sheets at September 30, 2007
                (unaudited) andDecember
                31, 2006
            1Condensed
                Consolidated Statements of Income for the Three
                and Nine MonthsEnded
                September 30, 2007 and 2006
                (unaudited)
            2Condensed
                Consolidated Statement of Changes in Partners’
                Equity for theperiods
                ended December 31, 2006 through September 30, 2007
                (unaudited)
            3Condensed
                Consolidated Statements of Cash Flows for the Nine
                Months EndedSeptember
                30, 2007 and 2006 (unaudited)
            4Notes
                to Condensed Consolidated Financial Statements
                (unaudited)
            6Item
                2. General Partner’s Discussion and Analysis of
                Financial Condition andResults
                of Operations
            13Item
                3. Quantitative and Qualitative Disclosures About
                Market Risk
            20Item
                4T. Controls and Procedures
            21PART
                II – OTHER INFORMATIONItem
                1. Legal Proceedings
            
            22Item
                1A.   Risk
                Factors
            
            22Item
                2. Unregistered Sales of Equity Securities and Use of
                Proceeds
            22Item
                3. Defaults Upon Senior
                Securities
            22Item
                4. Submission of Matters to a Vote of Security
                Holders
            22Item
                5. Other Information
            
            22Item
                6. Exhibits
            
            22Signatures
            
            23







*Table
          of Contents*






**PART
      I – FINANCIAL INFORMATION**





**Item
      1.  Condensed Consolidated Financial
      Statements**





ICON
                Income Fund Eight B L.P.(A
                Delaware Limited Partnership)Condensed
                Consolidated Balance SheetsAssetsSeptember
                30,2007
            
            
            December
                31,(unaudited)
            
            
            2006Current
                assetsCash
                and cash equivalents
            
            $
            590,699
            
            
            $
            888,290Current
                portion of net investment in finance leases
            
            
            1,663,153
            
            
            
            67,667Accounts
                Receivable
            
            
            14,618
            
            
            
            1,593,778Other
                current assets
            
            
            4,725
            
            
            
            1,397,527Total
                current assets
            
            
            2,273,195
            
            
            
            3,947,262Non-current
                assetsNet
                investments in finance leases, less current portion
            
            
            5,429,142
            
            
            
            -Leased
                equipment at cost, (less: accumulated depreciation of $25,148,687
                and
                $43,018,821, respectively)
            
            
            54,156,400
            
            
            
            68,969,109Equipment
                held for sale
            
            
            -
            
            
            
            140,400Investments
                in joint ventures
            
            
            3,466,787
            
            
            
            4,315,573Other
                non-current assets, net
            
            
            1,362,448
            
            
            
            1,405,017Total
                non-current assets
            
            
            64,414,777
            
            
            
            74,830,099Total
                Assets
            
            $
            66,687,972
            
            
            $
            78,777,361Liabilities
                and Partners' EquityCurrent
                liabilitiesAccrued
                expenses and other liabilities
            
            $
            435,342
            
            
            $
            2,166,028Current
                portion of non-recourse long-term debt
            
            
            3,739,072
            
            
            
            6,430,655Due
                to General Partner and affiliates
            
            
            143,070
            
            
            
            -Deferred
                rental income
            
            
            245,454
            
            
            
            138,021Revolving
                line of credit, recourse
            
            
            1,255,000
            
            
            
            3,125,000Total
                current liabilities
            
            
            5,817,938
            
            
            
            11,859,704Non-current
                liabilitiesNon-recourse
                long-term debt, net of current portion
            
            
            43,324,361
            
            
            
            46,142,220Total
                Liabilities
            
            
            49,142,299
            
            
            
            58,001,924Minority
                Interest
            
            
            -
            
            
            
            498,287Commitments
                and contingenciesPartners'
                EquityGeneral
                Partner
            
            
            (473,637
            )
            
            
            (446,575
            )Limited
                Partners
            
            
            18,019,310
            
            
            
            20,723,725Total
                Partners' Equity
            
            
            17,545,673
            
            
            
            20,277,150Total
                Liabilities and Partners' Equity
            
            $
            66,687,972
            
            
            $
            78,777,361








1
 *Table
          of Contents*






ICON
                Income Fund Eight B L.P.(A
                Delaware Limited Partnership)Condensed
                Consolidated Statements of Operations(unaudited)Three
                Months Ended
            
            
            Nine
                Months EndedSeptember
                30,
            
            
            September
                30,2007
            
            
            2006
            
            
            2007
            
            
            2006Revenue:Rental
                income
            
            $
            1,654,645
            
            
            $
            3,505,650
            
            
            $
            6,986,662
            
            
            $
            11,688,675Finance
                income
            
            
            247,408
            
            
            
            21,963
            
            
            
            508,191
            
            
            
            126,044Loss
                from investments in joint ventures
            
            
            (64,959
            )
            
            
            (727,631
            )
            
            
            (223,058
            )
            
            
            (1,722,039
            )Net
                gain (loss) on sales of equipment
            
            
            1,052,787
            
            
            
            (103,755
            )
            
            
            431,775
            
            
            
            342,558Interest
                and other income
            
            
            687
            
            
            
            32,219
            
            
            
            67,417
            
            
            
            103,547Total
                revenue
            
            
            2,890,568
            
            
            
            2,728,446
            
            
            
            7,770,987
            
            
            
            10,538,785Expenses:General
                and administrative
            
            
            74,085
            
            
            
            87,983
            
            
            
            341,311
            
            
            
            1,586,731Depreciation
                and amortization
            
            
            999,505
            
            
            
            2,828,231
            
            
            
            3,620,745
            
            
            
            8,087,923Impairment
                loss
            
            
            -
            
            
            
            319,770
            
            
            
            -
            
            
            
            319,770Management
                fees - General Partner
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            410,842Administrative
                expense reimbursements - General Partner
            
            
            -
            
            
            
            -
            
            
            
            -
            
            
            
            161,980Interest
            
            
            849,362
            
            
            
            1,092,317
            
            
            
            2,577,334
            
            
            
            2,834,886Minority
                interest
            
            
            -
            
            
            
            285,385
            
            
            
            100,178
            
            
            
            337,827Total
                expenses
            
            
            1,922,952
            
            
            
            4,613,686
            
            
            
            6,639,568
            
            
            
            13,739,959Net
                income (loss)
            
            $
            967,616
            
            
            $
            (1,885,240
            )
            
            $
            1,131,419
            
            
            $
            (3,201,174
            )Net
                income (loss) allocable to:Limited
                Partners
            
            $
            957,940
            
            
            $
            (1,866,388
            )
            
            $
            1,120,105
            
            
            $
            (3,169,162
            )General
                Partner
            
            
            9,676
            
            
            
            (18,852
            )
            
            
            11,314
            
            
            
            (32,012
            )$
            967,616
            
            
            $
            (1,885,240
            )
            
            $
            1,131,419
            
            
            $
            (3,201,174
            )Weighted
                average number of limited partnershipunits
                outstanding
            
            
            740,530
            
            
            
            741,530
            
            
            
            741,138
            
            
            
            741,824Net
                income (loss) per weighted average limitedpartnership
                unit outstanding
            
            $
            1.29
            
            
            $
            (2.52
            )
            
            $
            1.51
            
            
            $
            (4.27
            )








2
 *Table
          of Contents*







ICON
                Income Fund Eight B L.P.(A
                Delaware Limited Partnership)Condensed
                Consolidated Statement of Changes in Partners' Equity(unaudited)LimitedPartnership
            
            
            
            
            
            
            
            
            TotalUnits
            
            
            Limited
            
            
            General
            
            
            Partners'Outstanding
            
            
            Partners'
            
            
            Partner
            
            
            EquityOpening
                balance, January 1, 2006
            
            
            742,830
            
            
            $
            27,317,628
            
            
            $
            (380,487
            )
            
            $
            26,937,141Limited
                partnership units redeemed
            
            
            (1,300
            )
            
            
            (51,135
            )
            
            
            -
            
            
            
            (51,135
            )Cash
                distributions to partners
            
            
            -
            
            
            
            (5,934,486
            )
            
            
            (59,944
            )
            
            
            (5,994,430
            )Net
                loss
            
            
            -
            
            
            
            (608,282
            )
            
            
            (6,144
            )
            
            
            (614,426
            )Period
                ended December 31, 2006
            
            
            741,530
            
            
            
            20,723,725
            
            
            
            (446,575
            )
            
            
            20,277,150Cash
                distributions to partners
            
            
            -
            
            
            
            (1,483,061
            )
            
            
            (14,980
            )
            
            
            (1,498,041
            )Net
                loss
            
            
            -
            
            
            
            (119,821
            )
            
            
            (1,210
            )
            
            
            (121,031
            )Period
                ended March 31, 2007
            
            
            741,530
            
            
            
            19,120,843
            
            
            
            (462,765
            )
            
            
            18,658,078Limited
                partnership units redeemed
            
            
            (1,000
            )
            
            
            (25,298
            )
            
            
            -
            
            
            
            (25,298
            )Cash
                distributions to partners
            
            
            -
            
            
            
            (1,483,062
            )
            
            
            (14,981
            )
            
            
            (1,498,043
            )Net
                income
            
            
            -
            
            
            
            281,986
            
            
            
            2,848
            
            
            
            284,834Period
                ended June 30, 2007
            
            
            740,530
            
            
            
            17,894,469
            
            
            
            (474,898
            )
            
            
            17,419,571-
            
            
            
            -
            
            
            
            -Cash
                distributions to partners
            
            
            -
            
            
            
            (833,099
            )
            
            
            (8,415
            )
            
            
            (841,514
            )Net
                income
            
            
            -
            
            
            
            957,940
            
            
            
            9,676
            
            
            
            967,616Period
                ended September 30, 2007
            
            
            740,530
            
            
            $
            18,019,310
            
            
            $
            (473,637
            )
            
            $
            17,545,673








3
 *Table
          of Contents*







ICON
                Income Fund Eight B L.P.(A
                Delaware Limited Partnership)Condensed
                Consolidated Statements of Cash FlowsNine
                Months Ended September 30,(unaudited)2007
            
            
            2006Cash
                flows from operating activities:Net
                income (loss)
            
            $
            1,131,419
            
            
            $
            (3,201,174
            )Adjustments
                to reconcile net income (loss) to net cash provided byoperating
                activities:Rental
                income paid directly to lenders by lessees
            
            
            (6,483,206
            )
            
            
            (11,293,412
            )Finance
                income
            
            
            (508,191
            )
            
            
            (126,044
            )Net
                gain on sales of equipment
            
            
            (431,775
            )
            
            
            (342,558
            )Loss
                from investments in joint ventures
            
            
            223,058
            
            
            
            1,722,039Impairment
                loss
            
            
            -
            
            
            
            319,770Depreciation
                and amortization
            
            
            3,620,745
            
            
            
            8,087,923Interest
                expense on non-recourse financing paid directly to lenders by
                lessees
            
            
            2,265,881
            
            
            
            2,765,542Minority
                interest
            
            
            100,178
            
            
            
            337,827Changes
                in operating assets and liabilities:Collection
                of principal - non-financed receivables
            
            
            1,324,242
            
            
            
            631,420Accounts
                receivable
            
            
            287,043
            
            
            
            126,519Due
                to General Partner and affiliates
            
            
            143,070
            
            
            
            142,836Other
                assets
            
            
            (79,718
            )
            
            
            822,551Deferred
                rental income
            
            
            109,121
            
            
            
            401,946Accrued
                expenses and other liabilities
            
            
            (261,139
            )
            
            
            1,197,855Net
                cash provided by operating activities
            
            
            1,440,728
            
            
            
            1,593,040Cash
                flows from investing activities:Distributions
                received from joint ventures
            
            
            633,828
            
            
            
            -Proceeds
                from sales of equipment and sales advances received
            
            
            11,783,785
            
            
            
            924,309Purchase
                of leased equipment
            
            
            (7,754,746
            )
            
            
            -Net
                cash provided by investing activities
            
            
            4,662,867
            
            
            
            924,309Cash
                flows from financing activities:Cash
                distributions to partners
            
            
            (3,837,598
            )
            
            
            (4,497,089
            )Proceeds
                from revolving line of credit
            
            
            3,630,000
            
            
            
            2,340,000Repayment
                of revolving line of credit
            
            
            (5,500,000
            )
            
            
            -Distributions
                to minority interest in  joint venture
            
            
            (668,290
            )
            
            
            (271,238
            )Cash
                paid for redemption of limited partnership units
            
            
            (25,298
            )
            
            
            (51,135
            )Net
                cash used in financing activities
            
            
            (6,401,186
            )
            
            
            (2,479,462
            )Net
                (decrease) increase in cash and cash equivalents
            
            
            (297,591
            )
            
            
            37,887Cash
                and cash equivalents, beginning of the period
            
            
            888,290
            
            
            
            964,730Cash
                and cash equivalents, end of the period
            
            $
            590,699
            
            
            $
            1,002,617








4
 *Table
          of Contents*





ICON
                Income Fund Eight B L.P.(A
                Delaware Limited Partnership)Condensed
                Consolidated Statements of Cash FlowsNine
                Months Ended September 30,(unaudited)2007
            
            
            2006Supplemental
                disclosure of cash flow information:Cash
                paid during the period for interest
            
            $
            311,453
            
            
            $
            64,537Supplemental
                disclosure of non-cash investing and financing activities:Principal
                and interest paid directly to lenders by lessees
            
            $
            7,775,323
            
            
            $
            12,772,561Escrow
                utilized to pay non-recourse debt
            
            $
            -
            
            
            $
            281,868Transfer
                of leased equipment to direct finance lease
            
            $
            7,743,990
            
            
            $
            403,565Transfer
                of leased equipment to equipment held for sale
            
            $
            -
            
            
            $
            108,800Transfer
                of equipment from direct finance lease to equipment held for
                sale
            
            $
            -
            
            
            $
            37,120








5
 *Table
          of Contents*




ICON
        Income Fund Eight B L.P.
 (A
        Delaware Limited Partnership)
 Notes
        to
        Condensed Consolidated Financial Statements
 September
        30, 2007
 (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
      (“GAAP”) 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 GAAP for complete financial statements.  In the
      opinion of ICON Capital Corp. (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 Annual Report on
      Form 10-K for the year ended December 31, 2006.  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 non-controlling interests in joint ventures where
      the Partnership has influence over 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 as revenue.  All of the Partnership’s
      investments in joint ventures are subject to its impairment review
      policies.





In
      joint
      ventures where the Partnership’s interest is majority owned, the financial
      condition and results of operations of the joint venture are
      consolidated. 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 leased equipment at lease
      expiration.  The Partnership will continue until December 31, 2017,
      unless terminated sooner.





The
      General Partner was a Connecticut corporation.  Effective June 1,
      2007, the General Partner was reincorporated as a Delaware
      corporation.  The General Partner manages and controls the business
      affairs of the Partnership, including, but not limited to, the equipment leases
      and financing transactions that the Partnership enters into pursuant to the
      terms of the Partnership’s limited partnership agreement (the “LP
      Agreement”).  Additionally, the General Partner has a 1% interest in
      the profits, losses, cash distributions and liquidation proceeds of the
      Partnership.








6
 *Table
          of Contents*
  ICON
          Income Fund Eight B L.P.
 (A
          Delaware Limited Partnership)
 Notes
          to
          Condensed Consolidated Financial Statements
 September
          30, 2007
 (unaudited)





(2)
            Organization
                - continued





The
      Partnership invested most of the net proceeds from its offering in items of
      equipment that were 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 was not
      needed for expenses, reserves and distributions to partners. The investment
      in
      additional equipment in this manner is called “reinvestment.”





The
      Partnership’s reinvestment period ended and the Partnership commenced its
      liquidation period on June 17, 2007. During the liquidation period, the
      Partnership is distributing substantially all distributable cash from operations
      and equipment sales to the limited partners and will continue the orderly
      termination of its operations and affairs. The Partnership will not invest
      in
      any additional finance or lease transactions during 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 have received, in addition, other distributions and
      allocations that 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.





(3)
            Summary
                of Significant Accounting Policies





Use
      of
      Estimates





The
      preparation of financial statements in conformity with GAAP 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
      at the date of the condensed consolidated financial statements and the reported
      amounts of revenues and expenses during the reporting period. Significant
      estimates primarily include the allowance for doubtful
      accounts, depreciation and amortization, residual values and
      impairments.  Actual results could differ from those
      estimates.





Reclassifications





Certain
      reclassifications have been made to the accompanying condensed consolidated
      financial statements in prior periods to conform to the current period
      presentation.





(4)
            Net
                Investments in Finance Leases





On
      December 31, 2006, the Partnership had an investment in finance leases
      consisting of 120 Noritsu Optical/Digital photo processing mini-labs subject
      to
      lease with K-Mart Corporation (“K-Mart”). The leases were scheduled to expire on
      various dates through April 2008. On February 9, 2007, the Partnership sold
      all
      of the remaining equipment previously on lease to K-Mart for approximately
      $254,000 and recognized a gain on the sale of the equipment of approximately
      $111,000.








7
 *Table
          of Contents*





ICON
        Income Fund Eight B L.P.
 (A
        Delaware Limited Partnership)
 Notes
        to
        Condensed Consolidated Financial Statements
 September
        30, 2007
 (unaudited)





(4)
            Net
                Investments in Finance Leases -
                continued





During
      March 2007, the Partnership purchased state-of-the-art telecommunications
      equipment totaling approximately $7,858,000 from various vendors, which is
      being
      leased to Global Crossing Telecommunications, Inc. (“Global Crossing”) effective
      April 1, 2007.  The lease expires on March 31, 2011. Monthly rent is
      payable in advance on the first business day of each month.  An
      initial direct cost of legal fees of approximately $124,000 was incurred as
      part
      of the purchase. The General Partner did not take any acquisition fees on the
      purchase.





Non-cancelable
      minimum annual amounts due on investments in finance leases over the next five
      years are as follows at:





December
                31,2007
            
            
            $
            394,2612008
            
            
            $
            1,722,2842009
            
            
            $
            1,980,5732010
            
            
            $
            2,277,5992011
            
            
            $
            620,891





(5)
            Investments
                in Leased Equipment at Cost





Investments
      in leased equipment at cost consist of the following at September 30, 2007
      and
      at December 31, 2006:





September
                  30,2007
            
            
            December
                31, 2006Aircraft
                and aircraft related equipment
            
            $
            77,505,910
            
            
            $
            107,935,824Material
                handling, telecommunication, over the road rollingstock,
                manufacturing and computer equipment
            
            
            1,799,177
            
            
            
            4,052,10679,305,087
            
            
            
            111,987,930Accumulated
                depreciation
            
            
            (25,148,687
            )
            
            
            (43,018,821
            )$
            54,156,400
            
            
            $
            68,969,109





ICON
      Aircraft 47820 LLC (“Aircraft 47820”) was a joint venture between the
      Partnership and ICON Income Fund Nine, LLC (“Fund Nine”), an entity also managed
      by the General Partner, whose ownership interests were 90% and 10%,
      respectively. Aircraft 47820 was formed for the purpose of acquiring an
      investment in a McDonnell Douglas DC-10-30F aircraft and two spare engines
      (the
“Aircraft and engines”) on lease to Federal Express Corporation (“FedEx”) that
      was scheduled to expire on March 31, 2007.





On
      March
      30, 2007, Aircraft 47820 sold the Aircraft and engines to FedEx for $5,475,000
      and recognized a loss on the sale of the Aircraft of approximately $1,025,000.
      The final lease payment was paid to the lender, satisfying all remaining debt
      obligations.





On
      August
      8, 2007, the Partnership sold all of its rights in five Pratt and Whitney 2037
      aircraft engine modules on lease to American Airlines, Inc. (formerly TWA
      Airlines LLC), to an unaffiliated third party for a gross sales price of
      $6,050,000.  In connection with the sale, the Partnership incurred
      legal fees and sales commissions of approximately $331,000 and relinquished
      previously collected security deposits and prepaid rent related to the engine
      modules of approximately $172,000, resulting in net proceeds to the Partnership
      of approximately $5,547,000 and a gain on sale of approximately
      $1,042,000.






8
 *Table
          of Contents*
  ICON
          Income Fund Eight B L.P.
 (A
          Delaware Limited Partnership)
 Notes
          to
          Condensed Consolidated Financial Statements
 September
          30, 2007
 (unaudited)





(5)
            Investments
                in Leased Equipment at Cost -
                continued





The
      Partnership has a 100% interest in one Airbus A340-313X aircraft (“Cathay 123”)
      and a 50% interest in a second Airbus A340-313X aircraft (“Cathay 126”), both on
      lease to Cathay Pacific Airways Limited (“Cathay”).  The Partnership
      had a commitment to pay a portion of the Cathay maintenance overhaul costs,
      which were incurred on or prior to March 14, 2006. Under the original lease,
      a
      maintenance reserve cash account was established to pay for the Partnership’s
      portion of these costs for the 100% owned aircraft.  In January 2007,
      the balance in the reserve account of approximately $1,403,000, inclusive of
      accreted interest, was used to pay the maintenance and overhaul costs. Cathay
      123 borrowed approximately $143,000 from Cathay 126 to repay the total
      maintenance overhaul cost of approximately $1,546,000.





(6)
            Investments
                in Joint Ventures




ICON
        Aircraft 46835 LLC





ICON
      Aircraft 46835 LLC (“Aircraft 46835”) was a joint venture between the
      Partnership and Fund Nine, whose ownership interests were 15% and 85%,
      respectively. Aircraft 46835 was formed for the purpose of acquiring an
      investment in a McDonnell Douglas DC-10-30F Aircraft (the “Aircraft”) on lease
      with FedEx that was scheduled to expire on March 31, 2007.





On
      March
      30, 2007, Aircraft 46835 sold the Aircraft to FedEx for $4,260,000 and
      recognized a loss on the sale of the Aircraft of approximately $640,000. The
      final lease payment was paid to the lender, satisfying all remaining debt
      obligations.





ICON
      SPK
      2023-A, LLC





ICON
      SPK
      2023-A, LLC (“SPK”) was a joint venture between the Partnership and Fund Nine,
      whose ownership interests were 74.87% and 25.13%, respectively. During the
      second quarter of 2007, SPK sold all of its remaining equipment to a third
      party
      for total sales proceeds of approximately $348,000.  SPK recognized a
      gain on sale of approximately $264,000.





ICON
      Cheyenne, LLC





ICON
      Cheyenne, LLC (“Cheyenne”) was a joint venture among the Partnership, ICON Cash
      Flow Partners L.P. Seven and ICON Income Fund Eight A L.P., entities also
      managed by the General Partner, that had ownership interests of 97.73%, 1.27%,
      and 1.00%, respectively. During the second quarter of 2007, Cheyenne sold all
      of
      its remaining equipment to a third party for total sales proceeds of
      approximately $111,000.  Cheyenne recognized a total gain on sale of
      approximately $110,000.




(7)
            Non-Recourse
                Long-Term Debt




The
      Partnership’s long-term debt is non-recourse to the Partnership and is paid
      directly to the lender by the lessee and accrues interest at 6.1095% per year.
      The outstanding balance of the non-recourse debt at September 30, 2007 was
      $47,063,433.





The
      Partnership had another non-recourse long-term debt obligation in connection
      with Aircraft 47820 which was also paid directly to the lender by the lessee.
      The debt accrued interest at 4.035%. The final lease payment of approximately
      $2,900,000 was paid to the lender of the non-recourse debt upon the sale of
      the
      Aircraft and engines (see Note 5), satisfying all remaining debt
      obligations.






9
 *Table
          of Contents*
  ICON
          Income Fund Eight B L.P.
 (A
          Delaware Limited Partnership)
 Notes
          to
          Condensed Consolidated Financial Statements
 September
          30, 2007
 (unaudited)





(8)
            Revolving
                Line of Credit - Recourse





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 (collectively, the “Borrowers”)
      entered into a Commercial Loan Agreement (the “Loan Agreement”), with California
      Bank & Trust (the “Lender”). The Loan 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 Loan 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, on the present value of
      the
      future receivables under certain lease agreements in which the Borrowers have
      a
      beneficial interest.





As
      part
      of the Loan 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 September 30, 2007. The Loan 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 Loan 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 Loan 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 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. The
      Borrowers are in compliance with the Contribution Agreement at September 30,
      2007 and no amounts are due to or payable by the Partnership under the
      Contribution Agreement.





On
      December 26, 2006, the Borrowers entered into a Loan Modification Agreement
      (the
“Loan Modification”) to the Loan Agreement. The changes to the Loan Agreement
      are an extension of the Facility from August 31, 2007 to September 30, 2008
      and
      the lowering of (i) the interest rate for advances under the Facility from
      the
      Lender’s prime rate plus 0.25% to the Lender’s prime rate and (ii) the interest
      rate on the five separate advances that are permitted to be made under the
      Facility at the rate at which United States dollar deposits can be acquired
      by
      the Lender in the London Interbank Eurocurrency Market (the “LIBOR Rate”) plus
      2.75% per year to the LIBOR Rate plus 2.5% per year. In addition, pursuant
      to
      the terms of the loan modification, the Borrowers no longer have to maintain
      a
      cash reserve. The interest rate at September 30, 2007 was 7.75%.





On
      June
      20, 2007, the Loan Agreement, the Contribution Agreement and the Loan
      Modification were modified so that ICON Leasing Fund Twelve, LLC (“Fund
      Twelve”), an entity also managed by the General Partner, became a permitted
      borrower. Fund Twelve, as a result of its entry into the Loan
      Modification, is jointly and severally liable for the outstanding
      balance.






10
 *Table
          of Contents*


ICON
        Income Fund Eight B L.P.
 (A
        Delaware Limited Partnership)
 Notes
        to
        Condensed Consolidated Financial Statements
 September
        30, 2007
 (unaudited)


(8)
            Revolving
                Line of Credit - Recourse -
                continued




On
      August
      21, 2007, the Partnership repaid $5,500,000 of borrowings under the Facility,
      reducing the Partnership’s outstanding balance at September 30, 2007 to
      $1,255,000.





On
      September 20, 2007, Fund Twelve
      borrowed an aggregate amount of $5,000,000 under the Facility. The total
      outstanding balance for all Borrowers under the Facility at September 30, 2007
      was $6,255,000.Subsequent to September 30, 2007, Fund Twelve repaid
      $5,000,000 of borrowings under the Facility.





(9)
            Transactions
                with Related Parties





Prior
      to
      May 1, 2006 and in accordance with the terms of the LP 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%, based on 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.





The
      General Partner performs certain services relating to the management of the
      Partnership’s 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 salaries and related costs, travel expenses and other
      administrative costs incurred by individuals with a controlling interest in
      the
      General Partner or expenses for rent, depreciation or utilities of the General
      Partner.





Although
      the General Partner continues to provide these services, effective May 1, 2006,
      the General Partner waived its rights to all future management fees and
      administrative expense reimbursements.





The
      General Partner also has a 1% interest in the Partnership’s profits, losses,
      cash distributions and liquidation proceeds.  The Partnership paid
      distributions to the General Partner $38,376 for the nine months ended September
      30, 2007 and $59,944 for the year ended December 31, 2006.  The
      General Partner’s interest in the Partnership’s net income and loss for the
      three months ended September 30, 2007 and 2006 was $9,676 and $18,852,
      respectively. The General Partner’s interest in the Partnership’s net income and
      loss for the nine months ended September 30, 2007 and 2006 was $11,314 and
      $32,012, respectively.







11
 *Table
          of Contents*





ICON
        Income Fund Eight B L.P.
 (A
        Delaware Limited Partnership)
 Notes
        to
        Condensed Consolidated Financial Statements
 September
        30, 2007
 (unaudited)





(9)
            Transactions
                with Related Parties - continued





There
      were no charges for the nine months ended September 30, 2007, since the fees
      were waived effective May 1, 2006. However, if the fees were not waived, the
      total management fees for the three and nine months ended September 30, 2007
      would have been approximately $77,000 and $347,000, respectively. If the fees
      for total administrative expense reimbursements were not waived for the three
      and nine months ended September 30, 2007, the fees would have been approximately
      $100,000 and $344,000, respectively.





Fees
      and
      other expenses charged to operations by the Partnership and paid to the General
      Partner or its affiliates for the nine months ended September 30,  2006,
      were as follows:





Nine
                Months
              EndedSeptember
                  30,Entity
            Capacity
            Description
            
            2006ICON
                Capital Corp.
            General
                Partner
            Management
                fees
            
            $
            410,842ICON
                Capital Corp.
            General
                Partner
            Administrative
                expense reimbursements
            
            
            161,980$
            572,822








(10)
            Recent
                Accounting Pronouncements





In
      September 2006, the Financial Accounting Standards Board (“FASB”) issued
      SFAS No. 157, “Accounting for Fair Value Measurements” (“SFAS 157”). SFAS 157
      establishes a separate framework for determining fair values of assets and
      liabilities that are required by other authoritative GAAP pronouncements to
      be
      measured at fair value. In addition, SFAS 157 incorporates and clarifies
      the guidance in FASB Concepts Statement No. 7 regarding the use of present
      value
      techniques in measuring fair value. SFAS 157 is effective for
      financial statements with fiscal years beginning after November 15, 2007.
      The Manager is currently evaluating the impact of this
      pronouncement.






12
 *Table
          of Contents*




**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 together with our unaudited condensed
      consolidated financial statements and related notes included elsewhere in this
      report, Part II 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, 2006.




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
      operate as an equipment leasing program in which the capital our partners have
      invested was pooled together to make investments, pay fees and establish a
      small
      reserve. We primarily acquired equipment subject to lease and, to a lesser
      degree, acquired ownership rights to items of leased equipment at lease
      expiration. Some of our equipment leases were acquired for cash and provided
      current cash flow, which we refer to as “income” leases. For the other equipment
      leases, we financed the majority of the purchase price. We refer to these leases
      as “growth” leases. These growth leases generate little or no current cash flow
      because substantially all of the rental payments received from a lessee is
      used
      to service the indebtedness associated with acquiring or financing the lease.
      We
      anticipated that the future value of the leased equipment will exceed our cash
      portion of the purchase price.





On
      June
      17, 2007, we began our liquidation period.  During our liquidation
      period, we will distribute substantially all distributable cash from operations
      and equipment sales to our partners and continue the orderly termination of
      our
      operations and affairs.





At
      September 30, 2007, 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:*





·
            We
                have a 100% interest in one Airbus A340-313X aircraft (“Cathay 123”) and a
                50% interest in a second Airbus A340-313X aircraft (“Cathay 126”), 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.








13
 *Table
          of Contents*








*Telecommunications
      Equipment:*





·
            We
                have a 100% interest in state-of-the-art telecommunications equipment
                purchased and owned by ICON Global Crossing, LLC (“ICON Global Crossing”)
                and on lease to Global Crossing Telecommunications, Inc. (“Global
                Crossing”). The lease is scheduled to expire on March 31,
                2011.





*Energy
      Equipment:*





·
            We
                have a 5.93% interest in the rights to the profits, losses and cash
                flows
                from an entity that owns a 50.0% interest in a mobile offshore drilling
                rig subject to a lease with Rowan Companies,
                Inc.








***Lease
      and Other Significant Transactions***





*Sale
      of ICON Aircraft 47820, LLC*





We
      had a
      90.0% interest in ICON Aircraft 47820, LLC (“Aircraft 47820”). Aircraft 47820
      was a joint venture with ICON Income Fund Nine, LLC (“Fund Nine”), an entity
      also managed by our General Partner. On March 30, 2007, Aircraft 47820 sold
      its
      sole asset, a McDonnell Douglas DC-10-30F aircraft and two spare engines (the
      “Aircraft and engines”) on lease to Federal Express Corporation (“FedEx”), for
      $5,475,000. A loss on sale of the Aircraft and engines of approximately
      $1,025,000 was recognized by Aircraft 47820.





*Sale
      of ICON Aircraft 46835, LLC*





We
      had a
      15.0% interest in ICON Aircraft 46835, LLC (“Aircraft 46835”). Aircraft 46835
      was a joint venture with Fund Nine. On March 30, 2007, Aircraft 46835 sold
      its
      sole asset, a McDonnell Douglas DC-10-30F aircraft  (the “Aircraft”)
      on lease to FedEx, for $4,260,000. A loss on sale for the Aircraft of
      approximately $640,000 was recognized by Aircraft 46835.





*Sale
      of ICON Cheyenne, LLC*





We
      had a
      97.73% interest in ICON Cheyenne, LLC (“Cheyenne”). Cheyenne was a joint venture
      with ICON Cash Flow Partners L.P. Seven and ICON Income Fund Eight A L.P.,
      which
      are entities also managed by our General Partner. Cheyenne had a portfolio
      of
      seven active leases with expiration dates through September 2007.  The
      portfolio consisted of over the road rolling stock, manufacturing equipment
      and
      materials handling equipment. During the second quarter of 2007, Cheyenne sold
      all of the remaining equipment to a third party for total sales proceeds of
      approximately $111,000.  A total gain on sale of approximately
      $110,000 was recognized by Cheyenne.





*Sale
      of ICON SPK 2023-A, LLC*





We
      had a
      74.87% interest in ICON SPK 2023-A, LLC (“SPK”).  SPK was a joint
      venture with Fund Nine, which had a portfolio of five active leases with
      expiration dates through April 2008.  The portfolio consisted of
      various equipment leases, including material handling, telecommunication and
      computer equipment. During the second quarter of 2007, SPK sold all of the
      remaining equipment to a third party for total sales proceeds of approximately
      $348,000.  A total gain on sales of approximately $264,000 was
      recognized by SPK.







14
 *Table
          of Contents*








*Sale
      of five Pratt and Whitney 2037 aircraft engine modules*





We
      had a
      100% interest in five Pratt and Whitney 2037 aircraft engine modules (the
“Engine Modules”) on lease to American Airlines, Inc., formerly TWA Airlines,
      LLC (“TWA”).  On August 8, 2007, we sold all of all of our rights in
      the Engine Modules to an unaffiliated third party for a gross sales price of
      $6,050,000. In connection with the sale, we incurred legal fees and sales
      commissions of approximately $331,000 and relinquished previously collected
      security deposits and prepaid rent related to the Engine Modules of
      approximately $172,000, resulting in net proceeds to us of approximately
      $5,547,000 and a gain on sale of approximately $1,042,000.





**New
      Accounting Pronouncements**





In
      September 2006, the Financial Accounting Standards Board (“FASB”) issued
      SFAS No. 157, “Accounting for Fair Value Measurements” (“SFAS 157”). SFAS 157
      establishes a separate framework for determining fair values of assets and
      liabilities that are required by other authoritative GAAP pronouncements to
      be
      measured at fair value. In addition, SFAS 157 incorporates and clarifies
      the guidance in FASB Concepts Statement No. 7 regarding the use of present
      value
      techniques in measuring fair value. SFAS 157 is effective for
      financial statements with fiscal years beginning after November 15,
      2007. Our Manager is currently evaluating the impact of this
      pronouncement.





**Results
      of Operations for the Three Months Ended September 30, 2007 (the “2007 Quarter”)
      and 2006 (the “2006 Quarter”)**





We
      began
      our liquidation period on June 17, 2007.  During the 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 2007 Quarter and 2006 Quarter are summarized as follows:





Three
                Months Ended September 30,2007
            
            
            2006
            
            
            ChangeTotal
                revenue
            
            $
            2,890,568
            
            
            $
            2,728,446
            
            
            $
            162,122Rental
                income
            
            
            1,654,645
            
            
            
            3,505,650
            
            
            
            (1,851,005
            )Finance
                income
            
            
            247,408
            
            
            
            21,963
            
            
            
            225,445Loss
                from investments in joint ventures
            
            
            (64,959
            )
            
            
            (727,631
            )
            
            
            662,672Net
                gain (loss) on sales of equipment
            
            
            1,052,787
            
            
            
            (103,755
            )
            
            
            1,156,542Interest
                and other income
            
            
            687
            
            
            
            32,219
            
            
            
            (31,532
            )





Total
      revenue for the 2007 Quarter increased $162,122, or 5.9%, as compared to the
      2006 Quarter.  The increase in total revenue was due to the net gain
      on sales of equipment, decreased losses from investments in joint ventures
      and
      increased finance income, partly offset by the decrease in rental income. The
      increase in the net gain on the sales of equipment was due to the sale of the
      Engine Modules previously on lease to TWA in the 2007 Quarter. The decrease
      in
      the loss from investments in joint ventures was primarily a result of our lease
      extension with Cathay for Cathay 126 during the 2006 Quarter, which increased
      the overall number of total rental payments but reduced monthly rentals. The
      increase in finance income was due to the addition of our interest in equipment
      on lease to Global Crossing. The increase in revenue was mostly offset by a
      decrease in rental income, which was due to the sale of the Aircraft and engines
      previously on lease with FedEx in March 2007 and the extension of our lease
      with
      Cathay for Cathay 123 during March 2006, which resulted in a reduction in rental
      payments. The reduction in rental income was approximately $1,600,000 for
      Aircraft 47820 and approximately $200,000 for Cathay 123 in the 2007
      Quarter.







15
 *Table
          of Contents*








Expenses
      for the 2007 Quarter and the 2006 Quarter are summarized as
      follows:





Three
                Months Ended September 30,2007
            
            
            2006
            
            
            ChangeTotal
                expenses
            
            $
            1,922,952
            
            
            $
            4,613,686
            
            
            $
            (2,690,734
            )General
                and administrative
            
            
            74,085
            
            
            
            87,983
            
            
            
            (13,898
            )Depreciation
                and amortization
            
            
            999,505
            
            
            
            2,828,231
            
            
            
            (1,828,726
            )Impairment
                loss
            
            
            -
            
            
            
            319,770
            
            
            
            (319,770
            )Interest
            
            
            849,362
            
            
            
            1,092,317
            
            
            
            (242,955
            )Minority
                interest
            
            
            -
            
            
            
            285,385
            
            
            
            (285,385
            )





Total
      expenses for the 2007 Quarter decreased $2,690,734, or 58.3% as compared to
      the
      2006 Quarter.  The decrease in total expenses was primarily due to the
      decrease in depreciation and amortization, as a result of the sale of the
      Aircraft and engines in March 2007 and the extension of our lease with Cathay
      for Cathay 123 during March 2006, which increased the overall number of total
      rental payments and simultaneously decreased the monthly depreciation and
      amortization expense. The impairment loss expense for the 2006 Quarter was
      due
      to our General Partner’s decision that the assets previously on lease with the
      K-Mart Corporation (“K-Mart”) were impaired. There was no impairment loss
      recognized in the 2007 Quarter. The decrease in minority interest expense was
      due to the sale of Aircraft 46835 in early 2007. The decrease in interest
      expense was primarily due to the refinancing of our debt in connection with
      the
      extension of our lease with Cathay for Cathay 123 during March 2006, which
      resulted in a reduction of interest expense of approximately $240,000 for the
      2007 Quarter.





*Net
      Income(Loss)*





As
      a
      result of the foregoing factors, the net income was $967,616 for the 2007
      Quarter and the net loss was $1,885,240 for the 2006 Quarter.  The net
      income per weighted average number of limited partnership units outstanding
      was
      $1.29 for the 2007 Quarter and the net loss per weighted average number of
      limited partnership units outstanding was $2.52 for the 2006
      Quarter.








**Results
      of Operations for the Nine Months Ended September 30, 2007 (the “2007 Period”)
      and 2006 (the “2006 Period”)**





Revenue
      for the 2007 Period and 2006 Period are summarized as follows:





Nine
                Months Ended September 30,2007
            
            
            2006
            
            
            ChangeTotal
                revenue
            
            $
            7,770,987
            
            
            $
            10,538,785
            
            
            $
            (2,767,798
            )Rental
                income
            
            
            6,986,662
            
            
            
            11,688,675
            
            
            
            (4,702,013
            )Finance
                income
            
            
            508,191
            
            
            
            126,044
            
            
            
            382,147Loss
                from investments in joint ventures
            
            
            (223,058
            )
            
            
            (1,722,039
            )
            
            
            1,498,981Net
                gain on sales of equipment
            
            
            431,775
            
            
            
            342,558
            
            
            
            89,217Interest
                and other income
            
            
            67,417
            
            
            
            103,547
            
            
            
            (36,130
            )







16
 *Table
          of Contents*







Total
      revenue for the 2007 Period decreased $2,767,798, or 26.3%, as compared to
      the
      2006 Period.  The decrease in total revenue was primarily due to lower
      rental income, partly offset by decreased losses from investments in joint
      ventures and increased finance income. The decrease in rental income was a
      result of the extension of our lease with Cathay for Cathay 123 during March
      2006, which increased the overall number of total rental payments but reduced
      monthly rental amounts. The sale of the Aircraft and engines and the Engine
      Modules also resulted in the reduction in rental payments for the 2007 Period.
      The decrease in revenue was partly offset by a reduction in the loss from joint
      ventures that resulted from our lease extension with Cathay for Cathay 126
      during the 2006 Period, which increased the overall number of total rental
      payments but reduced monthly rental amounts. The decrease was also offset by
      an
      increase in finance income primarily due to the addition of our interest in
      equipment on lease to Global Crossing in the 2007 Period.





Expenses
      for the 2007 Period and the 2006 Period are summarized as follows:





Nine
                Months Ended September 30,2007
            
            
            2006
            
            
            ChangeTotal
                expenses
            
            $
            6,639,568
            
            
            $
            13,739,959
            
            
            $
            (7,100,391
            )General
                and administrative
            
            
            341,311
            
            
            
            1,586,731
            
            
            
            (1,245,420
            )Depreciation
                and amortization
            
            
            3,620,745
            
            
            
            8,087,923
            
            
            
            (4,467,178
            )Impairment
                loss
            
            
            -
            
            
            
            319,770
            
            
            
            (319,770
            )Management
                fees - General Partner
            
            
            -
            
            
            
            410,842
            
            
            
            (410,842
            )Administrative
                expense reimbursements - General Partner
            
            
            -
            
            
            
            161,980
            
            
            
            (161,980
            )Interest
            
            
            2,577,334
            
            
            
            2,834,886
            
            
            
            (257,552
            )Minority
                interest
            
            
            100,178
            
            
            
            337,827
            
            
            
            (237,649
            )





Total
      expenses for the 2007 Period decreased $7,100,391, or 51.7%, as compared to
      the
      2006 Period. The decrease in total expenses was primarily due to the decrease
      in
      depreciation and amortization and maintenance expense. The decrease in
      depreciation and amortization was primarily due to the sale of the Aircraft
      and
      engines in March 2007 and the extension of our lease with Cathay for Cathay
      123
      during March 2006, which increased the overall number of total rental payments
      and simultaneously decreased the monthly depreciation and amortization expense.
      The decrease in general and administrative expenses was primarily due to the
      maintenance expense in the 2006 Period for a one-time charge for required
      maintenance and overhaul costs for Cathay 123. There was no maintenance expense
      incurred for the 2007 Period. The decrease in both management fees – General
      Partner and administrative expense reimbursements – General Partner was due to
      our General Partner’s decision, effective May 1, 2006, to waive all future
      management fees and administrative expense reimbursements, despite the General
      Partner continuing to provide these services. The impairment loss expense for
      the 2006 Period was due to our General Partner’s decision that the assets
      previously on lease with K-Mart were impaired. There was no impairment loss
      recognized for the 2007 Period.





*Net
      Income(Loss)*





As
      a
      result of the foregoing factors, the net income was $1,131,419 for the 2007
      Period and the net loss was $3,201,174 for the 2006 Period.  The net
      income per weighted average number of limited partnership units outstanding
      was
      $1.51 for the 2007 Period and the net loss per weighted average number of
      limited partnership units outstanding was $4.27 for the Period.





**Liquidity
      and Capital Resources**





*Sources
      and Uses of Cash*





At
      September 30, 2007 and 2006, we had cash and cash equivalents of $590,699 and
      $1,002,617, respectively. Our liquidation period commenced on June 17, 2007.
      During our liquidation period, our main source of cash is expected to be from
      operating and investing activities from the sale or disposal of
      our
      assets. Our main use of cash during the liquidation period is expected to be
      for
      financing activities, in the form of cash distributions to our
      partners.






17
 *Table
          of Contents*


*Operating
      Activities*





*Sources
      of Cash*





Our
      primary source of cash from operating activities in the 2007 Period was the
      collection of principal payments from our financing lease with ICON Global
      Crossing of $1,324,242.





Our
      primary source of cash from operating activities in the 2006 Period was the
      collection of principal payments from our financing leases with Regus Business
      Centre Corp. and K-Mart of approximately $631,000.





*Investing
      Activities*





*Sources
      of Cash*





Our
      primary source of cash from investing activities in the 2007 Period was from
      the
      proceeds of approximately $6,050,000 and $5,475,000 from the sales of the Engine
      Modules and the Aircraft and engines, respectively. In addition, approximately
      $639,000 of distributions was received from Aircraft 46835.





Our
      primary source of cash from investing activities in the 2006 Period was the
      proceeds of $924,309 from the sales of equipments for Cheyenne and
      SPK.





*Uses
      of Cash*





Our
      sole
      use of cash in investing activities in the 2007 Period was the purchase of
      state-of-the-art telecommunications equipment from various vendors totaling
      $7,754,746.  The equipment is on lease to Global Crossing as of April
      1, 2007.





*Financing
      Activities*





*Sources
      of Cash*





Our
      sole
      source of cash from financing activities during the 2007 Period was from the
      proceeds from our revolving line of credit of $3,630,000.





Our
      sole
      source of cash from financing activities during the 2006 Period was from the
      proceeds from our revolving line of credit of $2,340,000.





*Uses
      of Cash*





Our
      primary use of cash in financing activities during the 2007 Period was the
      $5,500,000 repayment of borrowings from our revolving loan facility and the
      distributions paid to our partners in the amount of $3,837,598. In addition,
      $668,290 of distributions were paid to our minority interest holders in Aircraft
      47820, Cheyenne and SPK.





Our
      primary use of cash in financing activities during the 2006 Period was
      distributions paid to our partners in the amount of $4,497,089. In addition,
      $271,238 of distributions were paid to our minority interest holders in Cheyenne
      and SPK.







18
 *Table
          of Contents*






*Revolving
      Line of Credit - Recourse*





On
      August
      31, 2005, we, together with certain of our affiliates (entities sponsored and
      organized by our General Partner), Fund Nine, ICON Income Fund Ten, LLC, and
      ICON Leasing Fund Eleven, LLC (collectively, the “Borrowers”) entered into a
      Commercial Loan Agreement (the “Loan Agreement”), with California Bank &
Trust (the “Lender”). The Loan 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 Loan 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, on the present value of the future
      receivables under certain lease agreements in which the Borrowers have a
      beneficial interest.





As
      part
      of the Loan 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 September 30, 2007. The Loan 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 Loan 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 Loan 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 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. The
      Borrowers are in compliance with the Contribution Agreement at September 30,
      2007 and no amounts are due to or payable by us under the Contribution
      Agreement.





On
      December 26, 2006, the Borrowers entered into a Loan Modification Agreement
      (the
“Loan Modification”) to the Loan Agreement. The changes to the Loan Agreement
      are an extension of the Facility from August 31, 2007 to September 30, 2008
      and
      the lowering of (i) the interest rate for advances under the Facility from
      the
      Lender’s prime rate plus 0.25% to the Lender’s prime rate and (ii) the interest
      rate on the five separate advances that are permitted to be made under the
      Facility at the rate at which United States dollar deposits can be acquired
      by
      the Lender in the London Interbank Eurocurrency Market (the “LIBOR Rate”) plus
      2.75% per year to the LIBOR Rate plus 2.5% per year. In addition, pursuant
      to
      the terms of the Loan Modification, the Borrowers no longer have to maintain
      a
      cash reserve. The interest rate at September 30, 2007 was 7.75%.





On
      June
      20, 2007, the Loan Agreement, the Contribution Agreement and the Loan
      Modification were modified so that ICON Leasing Fund Twelve, LLC (“Fund
      Twelve”), an entity also managed by our General Partner, became a permitted
      borrower. Fund Twelve, as a result of its entry into the Loan
      Modification, is jointly and severally liable for the outstanding
      balance.





On
      August
      21, 2007, we repaid $5,500,000 of borrowings under the Facility, reducing our
      outstanding balance at September 30, 2007 to $1,255,000.






19
 *Table
          of Contents*





On
      September 20, 2007, Fund Twelve
      borrowed an aggregate amount of $5,000,000 under the Facility. The total
      outstanding balance for all Borrowers under the Facility at September 30, 2007
      was $6,255,000.Subsequent to September 30, 2007, Fund Twelve repaid
      $5,000,000 of borrowings under the Facility.





Our
      General Partner believes that with the cash we currently have available, the
      cash being generated from our equipment leases, and the proceeds from equipment
      sales, is sufficient to continue our operations into the foreseeable future.
      We
      have the ability to borrow funds under the Facility if necessary. However,
      our
      ability to generate cash in the future is subject to general economic,
      financial, competitive, regulatory and other factors that affect our lessees’
business that are beyond our control.  See “Part II, Item
      1A.  Risk Factors.” At September 30, 2007, we have approximately
      $2,273,000 in current assets and approximately $5,818,000 in current
      liabilities, which results in approximately a $3,545,000 working capital
      deficit. Of this amount, approximately $3,739,000 consists of direct payments
      to
      a lender made by our lessee. These direct payments are for a debt that has
      no
      corresponding current assets. Therefore, when considering the overall working
      capital, direct payments should be excluded. The exclusion of these payments
      yields a surplus of approximately $194,000 at September 30, 2007.





*Distributions*





We
      paid
      monthly distributions to our limited partners beginning with the first month
      after the limited partners’ admission through the termination of our
      reinvestment period, which was on June 17, 2007. During the liquidation period,
      we expect to continue to make distributions pursuant to the terms of the LP
      agreement. We expect that distributions made during the liquidation period
      will
      vary, depending on the timing of the sale of our assets, our receipt of rental
      income, and income from our investments. We paid distributions to our limited
      partners and our General Partner for the 2007 Period of $3,799,222 and $38,376,
      respectively.





**Contractual
      Obligations and Commitments and Off Balance Sheet
      Transactions**





At
      September 30, 2007, we have both non-recourse and recourse debt obligations.
      The
      lenders have security interests in equipment relating to the non-recourse debt
      and an assignment of the rental payments under the leases. If the lessee were
      to
      default on the non-recourse debt, the equipment would be returned to the lender
      in extinguishment of the non-recourse debt. At September 30, 2007, our
      outstanding non-recourse indebtedness was $47,063,433. We are a party to the
      Facility, as discussed in the financing and borrowings section above. We have
      $1,255,000 of borrowings under this Facility at September 30, 2007.








**Item
      3. Quantitative and Qualitative Disclosures About Market
      Risk**





We,
      like
      most other companies, are exposed to certain market risks, which include 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.





In
      general, we manage our exposure to interest rate risk by obtaining fixed rate
      debt. The fixed rate debt is structured so as to match the cash flows required
      to service the debt to the payment streams under fixed rate lease receivables.
      The payments under the leases are assigned to the lenders in satisfaction of
      the
      debt.  We may finance leases with a floating interest rate and we are
      therefore exposed to interest rate risk until fixed rate financing is
      arranged.





We
      manage
      our exposure to equipment and residual risk by monitoring the markets our leased
      equipment is in and maximizing remarketing proceeds through the re-lease or
      sale
      of our equipment.








20
 *Table
          of Contents*





**Item
      4T. 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 September 30, 2007, as well as the financial statements and
      Quarterly Reports on Form 10-Q for the period ended September 30, 2007 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.





While
      evaluating our General Partner’s disclosure controls and procedures during 2006,
      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. In response, our
      General Partner hired several additional accounting staff members who are
      certified public accountants and/or are experienced with public reporting
      entities, including three additional senior accountants with more than 16,
      10
      and 9 years, respectively, of experience with public reporting entities, the
      most senior of those accountants having assumed the responsibilities of the
      senior vice president of accounting. 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.






21
 *Table
          of Contents*





**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.





**Item1A. Risk Factors**





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,
      2006.





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





There
      were 1,000 limited partnership units redeemed during the nine months ended
      September 30, 2007.  The redemption amounts are calculated according
      to a specified redemption formula in accordance with the LP
      agreement.  Redeemed units have no voting rights and do not share in
      distributions.  The LP 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.





Total
                Number of
            
            
            Price
                Paid PerLimited
                Partnership
            
            
            Limited
                PartnershipUnits
                Redeemed
            
            
            UnitsJanuary
                1, 2007 through January 31, 2007
            
            
            -
            
            
            $
            -February
                1, 2007 through February 28, 2007
            
            
            -
            
            
            $
            -March
                1, 2007 through March 31, 2007
            
            
            -
            
            
            $
            -April
                1, 2007 through April 30, 2007
            
            
            -
            
            
            $
            -May
                1, 2007 through May 31, 2007
            
            
            -
            
            
            $
            -June
                1, 2007 through June 30, 2007
            
            
            1,000
            
            
            $
            25.30July
                1, 2007 through July 31, 2007
            
            
            -
            
            
            $
            -August
                1, 2007 through August 31, 2007
            
            
            -
            
            
            $
            -September
                1, 2007 through September 30, 2007
            
            
            -
            
            
            $
            -





**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 nine months
      ended September 30, 2007.





**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. §1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.32.2
              Certification
                  pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the
                  Sarbanes-Oxley Act of 2002.






22
 *Table
          of Contents*





**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:
      November 13, 2007*





*/s/
      Thomas W. Martin*


Thomas
      W.
      Martin


Chairman,
      Chief Executive Officer and President of the General Partner


(Principal
      Executive Officer)


ICON
      Capital Corp.


General
      Partner of ICON Income Fund Eight B L.P.





*Date:
      November 13, 2007*





*/s/Michael A. Reisner*


Michael
      A. Reisner


Director,
      Executive Vice President and Chief Financial Officer of the General
      Partner


(Principal
      Financial and Accounting Officer)


ICON
      Capital Corp.


General
      Partner of ICON Income Fund Eight B L.P.






23