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, 2006
                       ---------------------------------------------------------

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

transition period from ______________________________ to _______________________


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

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

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

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

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

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

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

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

Number of outstanding limited partnership units of the registrant on October 31,
2006 is 741,530.


<PAGE>

<TABLE>
<CAPTION>


                          ICON Income Fund Eight B L.P.
                                      Index


PART I - FINANCIAL INFORMATION                                                             Page

     Item 1.  Condensed Consolidated Financial Statements

<S>                                                                                          <C>
         Condensed Consolidated Balance Sheets at September 30, 2006 (Unaudited) and
           December 31, 2005                                                                 1

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

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

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

         Notes to Condensed Consolidated Financial Statements (Unaudited)                    7

     Item 2.  General Partner's Discussion and Analysis of Financial Condition and
       Results of Operations                                                                14

     Item 3.  Quantitative and Qualitative Disclosures About Market Risk                    20

     Item 4.  Controls and Procedures                                                       21

PART II - OTHER INFORMATION

     Item 1.  Legal Proceedings                                                             22

     Item 1A. Risk Factors                                                                  22

     Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                   22

     Item 3.  Defaults Upon Senior Securities                                               23

     Item 4.  Submission of Matters to a Vote of Security Holders                           23

     Item 5.  Other Information                                                             23

     Item 6.  Exhibits                                                                      23

     Signatures                                                                             23


</TABLE>

<PAGE>





                         PART I - FINANCIAL INFORMATION

Item 1.  Condensed Consolidated Financial Statements

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

                                     ASSETS


                                               (Unaudited)
                                              September 30,     December 31,
                                                   2006             2005
                                              -------------    -------------
 Cash and cash equivalents                    $     875,447    $     848,665
                                              -------------    -------------

 Investments in finance leases:
      Minimum rents receivable                      388,082        2,486,536
      Estimated unguaranteed residual values         37,120          677,390
      Initial direct costs, net                         826            8,347
      Unearned income                                (8,118)        (132,337)
                                              -------------    -------------

         Net investments in finance leases          417,910        3,039,936
                                              -------------    -------------

 Investments in operating leases:
      Equipment, at cost                        112,702,056      118,154,977
      Accumulated depreciation                  (44,142,367)     (41,174,571)
                                              -------------    -------------

         Net investments in operating leases     68,559,689       76,980,406
                                              -------------    -------------

 Investments in joint ventures                    3,401,237        5,002,985
 Equipment held for sale                            125,440                -
 Due from General Partner and affiliates                  -           92,836
 Investment in option, at cost                    2,100,000        2,100,000
 Other assets, net                                2,794,394        3,895,419
                                              -------------    -------------

         Total assets                         $  78,274,117    $  91,960,247
                                              =============    =============

See accompanying notes to condensed consolidated financial statements.


                                       1
<PAGE>


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

                        LIABILITIES AND PARTNERS' EQUITY

<TABLE>
<CAPTION>

                                                         (Unaudited)
                                                         September 30,    December 31,
                                                             2006             2005
                                                         -----------      -----------
<S>                                                      <C>              <C>
 Notes payable - non-recourse                            $53,739,039      $63,746,059
 Notes payable - recourse                                  2,340,000                -
 Due to General Partner and affiliates                        75,000                -
 Deferred rental income                                      899,249          497,303
 Accounts payable and other liabilities                    1,613,013          426,263
 Minority interest                                           420,073          353,481
                                                         -----------      -----------

      Total liabilities                                   59,086,374       65,023,106
                                                         -----------      -----------

 Commitments and contingencies

 Partners' equity:
      General Partner                                       (457,470)        (380,487)
      Limited Partners (741,530 and 742,830 units
        outstanding,$100 per unit original issue price)   19,645,213       27,317,628
                                                         -----------      -----------

      Total partners' equity                              19,187,743       26,937,141
                                                         -----------      -----------

      Total liabilities and partners' equity             $78,274,117      $91,960,247
                                                         ===========      ===========
</TABLE>


See accompanying notes to condensed consolidated financial statements.

                                       2
<PAGE>


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


                                                                      Three Months Ended                Nine Months Ended
                                                                       September 30,                       September 30
                                                                    2006                2005           2006            2005
                                                                ------------     --------------    -----------      -----------
<S>                                                                  <C>                <C>               <C>           <C>
 Revenue:
      Rental income                                             $  3,505,650     $    5,062,306    $ 11,688,675     $15,174,518
      Finance income                                                  21,963            107,067         126,044         477,915
      (Loss) income from investments in joint ventures              (727,631)           120,374      (1,722,039)        384,461
      Net (loss) gain on sales of equipment                         (103,755)           172,947         342,558          35,894
      Net gain on sale of investment in unguaranteed
           residual values                                                 -                  -               -         320,097
      Interest and other income                                       32,219            176,070         103,547         394,725
                                                                ------------     --------------    ------------     -----------

         Total revenue                                             2,728,446          5,638,764      10,538,785      16,787,610
                                                                ------------     --------------    ------------     -----------

 Expenses:
      Impairment loss                                                319,770                  -         319,770               -
      Depreciation and amortization                                2,828,231          3,015,761       8,087,923       9,779,056
      Interest                                                     1,092,317          1,048,566       2,834,886       3,313,697
      Maintenance expense                                                  -                  -       1,152,698               -
      Management fees - General Partner                                    -            362,009         410,842       1,087,113
      Administrative expense reimbursements - General Partner              -            114,042         161,980         431,223
      General and administrative                                      87,983             41,223         434,033         601,672
      Minority interest                                              285,385             82,581         337,827         144,493
                                                                ------------     --------------    ------------     -----------

         Total expenses                                            4,613,686          4,664,182      13,739,959      15,357,254
                                                                ------------     --------------    ------------     -----------

 Net (loss) income                                              $ (1,885,240)    $      974,582     $(3,201,174)    $ 1,430,356
                                                                ============     ==============    ============     ===========

 Net (loss) income allocable to:
      Limited Partners                                          $ (1,866,388)    $      964,836     $(3,169,162)    $ 1,416,052
      General Partner                                                (18,852)             9,746         (32,012)         14,304
                                                                ------------     --------------    ------------     -----------

                                                                $ (1,885,240)    $      974,582     $(3,201,174)    $ 1,430,356
                                                                ============     ==============    ============     ===========

 Weighted average number of limited partnership
      units outstanding                                              741,530            743,257         741,824         743,272
                                                                ============     ==============    ============     ============

 Net (loss) income per weighted average limited
      partnership unit outstanding                              $      (2.52)    $         1.30    $      (4.27)    $      1.91
                                                                ============     ==============    ============     ===========


</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       3
<PAGE>


                          ICON Income Fund Eight B L.P.
                        (A Delaware Limited Partnership)
         Condensed Consolidated Statement of Changes in Partners' Equity
                      Nine Months Ended September 30, 2006
                                   (Unaudited)
<TABLE>
<CAPTION>


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

 Limited partnership units redeemed       (1,300)             (51,135)                 -         (51,135)
 Cash distributions to partners                -           (4,452,118)           (44,971)     (4,497,089)
 Net loss                                      -           (3,169,162)           (32,012)     (3,201,174)
                                        --------         ------------     --------------    ------------

 Balance, September 30, 2006             741,530         $ 19,645,213     $     (457,470)   $ 19,187,743
                                        ========         ============     ==============    ============

</TABLE>

See accompanying notes to condensed consolidated financial statements.

                                       4

<PAGE>



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

<TABLE>
<CAPTION>


 Increase (decrease) in cash and cash equivalents                                         2006            2005
                                                                                     --------------    ------------
 Cash flows from operating activities:
<S>                                                                                  <C>               <C>
      Net (loss) income                                                              $   (3,201,174)   $  1,430,356
      Adjustments to reconcile net (loss) income to net cash provided by
         operating activities:
            Rental income paid directly to lenders by lessees                           (11,293,412)    (13,321,998)
            Finance income paid directly to lenders by lessees                             (126,044)       (356,857)
            Net gain on sales of equipment                                                 (342,558)        (35,894)
            Loss (income) from investments in joint ventures                              1,722,039        (384,461)
            Net gain from sale of investment in unguaranteed residual values                      -        (320,097)
            Impairment loss                                                                 319,770               -
            Depreciation and amortization                                                 8,087,923       9,779,056
            Interest expense on non-recourse financing paid directly
                to lenders by lessees                                                     2,765,542       2,982,678
            Minority interest                                                               337,827         144,493
      Changes in operating assets and liabilities:
         Collection of principal - non-financed receivables                                 631,420         620,899
         Due from/to General Partner and affiliates                                         142,836        (217,790)
         Other assets                                                                       949,070          (4,110)
         Deferred rental income                                                             401,946          45,821
         Accounts payable and other liabilities                                           1,186,750        (166,053)
                                                                                     --------------    ------------

 Net cash provided by operating activities                                                1,581,935         196,043
                                                                                     --------------    ------------

 Cash flows from investing activities:
      Proceeds from sales of equipment and sales advances received                          924,309         969,830
      Loans and advances to affiliates                                                            -        (672,992)
      Distributions to minority interest in  joint venture                                 (271,238)       (269,335)
      Proceeds from sale of investment in unguaranteed residual values                            -         320,097
                                                                                     --------------    ------------

 Net cash provided by investing activities                                                  653,071         347,600
                                                                                     --------------    ------------

 Cash flows from financing activities:
      Cash distributions to partners                                                     (4,497,089)     (4,504,678)
      Proceeds from recourse borrowings                                                   2,340,000       3,560,000
      Cash paid for redemption of limited partnership units                                 (51,135)         (3,882)
                                                                                     --------------    ------------

 Net cash used in financing activities                                                   (2,208,224)       (948,560)
                                                                                     --------------    ------------

 Net increase (decrease) in cash and cash equivalents                                        26,782        (404,917)
 Cash and cash equivalents, beginning of the period                                         848,665       1,249,480
                                                                                     --------------    ------------

 Cash and cash equivalents, end of the period                                        $      875,447    $    844,563
                                                                                     ==============    ============

See accompanying notes to condensed consolidated financial statements.

</TABLE>

                                       5
<PAGE>


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

<TABLE>
<CAPTION>


                                                                                           2006             2005
                                                                                     --------------    ------------
 Supplemental disclosure of cash flow information:
<S>                                                                                  <C>               <C>
      Cash paid during the period for interest                                       $       64,537    $    331,019
                                                                                     ==============    ============

 Supplemental disclosure of non-cash investing and financing activities:
      Principal and interest paid directly to lenders by lessees                     $   12,772,561    $ 16,990,337
                                                                                     ==============    ============
      Notes payable non-recourse relinquished with repossession of equipment         $            -    $  3,398,406
                                                                                     ==============    ============
      Joint venture interests acquired from affiliate in exchange
         for amounts owed                                                            $            -    $    672,992
                                                                                     ==============    ============
      Escrow utilized to pay non-recourse debt                                       $      281,868    $          -
                                                                                     ==============    ============
      Transfer of equipment from direct finance lease to operating lease             $      403,565    $          -
                                                                                     ==============    ============
      Transfer of equipment in operating leases to equipment held for sale           $      108,800    $          -
                                                                                     ==============    ============
      Transfer of equipment from direct finance lease to equipment held for sale     $       37,120    $          -
                                                                                     ==============    ============

See accompanying notes to condensed consolidated financial statements.

</TABLE>
                                       6
<PAGE>


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

(1)    Basis of Presentation and Consolidation

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

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

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

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

(2)    Organization

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

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

                                       7
<PAGE>

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


(2)    Organization - continued

     The  Partnership  invested  most of the net  proceeds  from its offering in
items of equipment that are subject to a lease.  After the net offering proceeds
were invested, additional investments were made with the cash generated from the
Partnership's  initial  investments  to the  extent  that cash is not needed for
expenses,  reserves and distributions to partners.  The investment in additional
equipment in this manner is called  "reinvestment."  The  Partnership  purchases
equipment  from time to time  until  five  years  from the date the  Partnership
completed its  offering.  This time frame is called the  "reinvestment  period,"
which was anticipated to end on or about October 16, 2006.  However,  on October
5, 2006, the General Partner determined that it was in the best interests of the
limited partners that the reinvestment period be extended for six months.  After
the  reinvestment  period,  the Partnership will begin selling its assets in the
ordinary course of business during a time frame called the "liquidation period."

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

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

(3)    Use of Estimates

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

(4)    Investments in Finance Leases

     On April 30, 2006 and May 31, 2006,  two of the  Partnership's  leases with
K-Mart Corporation  ("K-Mart") expired and, pursuant to the terms of the leases,
they were extended for an additional 90 days. The Partnership was treating these
leases as  month-to-month  leases  beginning on May 1, 2006 and on June 1, 2006,
respectively.  Accordingly,  the Partnership reclassified approximately $285,000
and $119,000, respectively, of the unguaranteed residual values related to these
assets to investments in operating  leases.  These lease  extensions ended on or
before  September 30, 2006, and the Partnership  reclassified the net book value
of this equipment of $108,800 to equipment held for sale.

     A third lease with K-Mart,  expired on August 31, 2006 and the  Partnership
reclassified  the net book value of this  equipment of $37,120 to equipment held
for sale at September 30, 2006.

                                       8
<PAGE>

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


(4)    Investments in Finance Leases - continued

     At September 30, 2006, the General  Partner  determined,  based upon recent
negotiations with potential buyers, that the Noritsu  Optical/Digital  equipment
held by K-Mart was impaired. Accordingly, the Partnership recorded an impairment
loss for  approximately  $320,000 to more closely  approximate the adjusted book
value  to the  current  estimated  fair  value  of the  Noritsu  Optical/Digital
equipment, net of estimated selling costs.

(5)    Investments in Operating Leases

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

<TABLE>
<CAPTION>


                                                                    (Unaudited)
                                                                    September 30,    December 31,
                                                                        2006             2005
                                                                   -------------     --------------
<S>                                                                <C>               <C>
 Aircraft and aircraft related equipment                           $ 109,780,975     $  109,780,975
 Material handling, telecommunication, over the road rolling
     stock,manufacturing and computer equipment                        2,921,081          8,374,002
                                                                    ------------     --------------

                                                                     112,702,056        118,154,977
 Less: accumulated depreciation                                      (44,142,367)       (41,174,571)
                                                                   -------------     --------------

                                                                   $  68,559,689     $   76,980,406
                                                                   =============     ==============

</TABLE>


     On March 14, 2006,  the  Partnership  entered into a lease  extension  with
Cathay Pacific  Airways Limited  ("Cathay") with respect to an Airbus  A340-313X
aircraft  that is 100% owned by the  Partnership,  through an owner  trust.  The
original  lease with  Cathay was  scheduled  to expire on March 14, 2006 and has
been extended until October 1, 2011.

     Simultaneously  with the lease  extension,  the Partnership  refinanced the
non-recourse debt associated with the aircraft which was originally due on March
14,  2006 and  required a balloon  payment  of  approximately  $52,850,000.  The
Partnership  established,  under the original lease, a reserve account  totaling
$281,868  which was used to reduce  the  balloon  payment  to  $52,568,132.  The
Partnership  refinanced  $52,568,132,  which  accrues  interest  at  the  London
Interbank  Offered Rate ("LIBOR") plus 1.165% (which was 6.535% at September 30,
2006),  matures on October  1, 2011 and has a balloon  payment of  approximately
$32,000,000.  The variable interest rate of the refinanced non-recourse debt was
fixed at 6.1095% automatically under the terms of the debt agreement,  effective
October 3,  2006.  The  Partnership  capitalized  approximately  $90,000 of fees
associated with the refinancing.  At September 30, 2006, the outstanding balance
of the non-recourse debt was $50,051,765.

     The Partnership has a commitment with respect to the Cathay aircraft to pay
50% of the maintenance  overhaul costs, which were incurred on or prior to March
14, 2006. The Partnership  has  established a maintenance  reserve cash account,
which  totaled  approximately  $1,380,000  at September 30, 2006, to pay for its
portion of these costs.  This account was funded in accordance with the terms of
the  original  lease.  For  the  nine  months  ended  September  30,  2006,  the
Partnership  accrued an  estimated  amount of its  portion of the  non-recurring
maintenance  overhaul  costs  of  approximately  $1,153,000.   Any  excess  cash
remaining after the  maintenance  overhaul is performed will be used to pay down
the principal balance of the related non-recourse debt.

                                       9
<PAGE>

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


(5)    Investments in Operating Leases - continued

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

   Year Ending
  September 30,
  -------------
       2007                     $   10,666,000
       2008                     $    7,075,000
       2009                     $    6,540,000
       2010                     $    6,240,000
       2011                     $    5,940,000

(6)    Joint Ventures

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

ICON Aircraft 126 LLC

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

     Simultaneously   with  the  lease   extension,   ICON  126  refinanced  the
non-recourse  debt  associated with the aircraft that was scheduled to mature on
March 27, 2006 and required a balloon payment of approximately $52,850,000. ICON
126 established,  under the original lease, a reserve account totaling $582,509,
which was used to reduce the balloon payment to $52,267,491. ICON 126 refinanced
$52,267,491,  which  accrues  interest at LIBOR plus 1.165%  (which was 6.54% at
September  28,  2006),  matures  on July 1,  2011 and has a balloon  payment  of
approximately $32,000,000. The variable interest rate of the refinanced debt was
fixed at 6.104%  under the terms of the debt  agreement,  effective  October  3,
2006.

     ICON 126 had a commitment with respect to its Cathay aircraft to pay 50% of
the  maintenance  overhaul  costs,  which were incurred on or prior to March 27,
2006. ICON 126 had established a maintenance reserve cash account, which totaled
approximately $1,380,000 to pay for its portion of these costs. This account was
funded in accordance with the terms of the original lease. During September 2006
approximately  $1,150,000 was paid for the  maintenance  costs.  The excess cash
remaining of approximately  $228,000,  which includes  interest  accreted in the
amount of approximately  $27,000 through September 30, 2006, will be used to pay
down the principal balance of the related non-recourse debt.

                                       10
<PAGE>

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


(7)    Notes Payable Non-recourse

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

    Year Ending
   September 30,
   -------------
        2007               $    6,390,000
        2008               $    3,742,000
        2009               $    3,988,000
        2010               $    3,875,000
        2011               $   35,744,000


(8)    Revolving Loan Facility

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

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

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

     The Contribution Agreement also provides that, in the event a Borrower pays
an amount under the  Contribution  Agreement in excess of its share of the total
obligations  under the  Facility,  whether  by reason of an event of  default or
otherwise,  the other Borrowers will immediately make a contribution  payment to
such Borrower and in such amount that the aggregate amount paid by each Borrower
reflects its allocable  share of the aggregate  obligations  under the Facility.
The Borrowers'  obligations to each other under the  Contribution  Agreement are
collateralized  by a  subordinate  lien  on the  assets  of each  Borrower.  The
Borrowers are in  compliance  with the  Contribution  Agreement at September 30,
2006  and  no  amounts  are  due to or  payable  by the  Partnership  under  the
Contribution Agreement.

                                       11

<PAGE>

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


(8)    Revolving Loan Facility - continued

     Under the terms of the Agreement,  the Borrowers are required to maintain a
cash reserve with the Lender  representing 20% of all outstanding  advances plus
all pending  advances.  Fund Eleven has  established  an interest  bearing  cash
account with the Lender totaling $468,000 at September 30, 2006, which satisfies
the Lender's cash reserve requirement for all the Borrowers.

     At September 30, 2006, the Partnership has  $2,340,000,  outstanding  under
the Facility, which represents the entire amount outstanding for all Borrowers.

(9)    Transactions with Related Parties

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

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

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

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

     The General Partner has a 1% interest in the Partnership's profits, losses,
cash  distributions  and liquidation  proceeds.  The Partnership paid or accrued
distributions  to the General  Partner for the nine months ended  September  30,
2006 of $44,971.  The General Partner's interest in the Partnership's net (loss)
income for the three months ended  September 30, 2006 and 2005 was $(18,852) and
$9,746,  respectively.  The General Partner's  interest in the Partnership's net
(loss)  income  for the  nine  months  ended  September  30,  2006  and 2005 was
$(32,012) and $14,304, respectively.

     The  Partnership  has  accrued  $75,000  due to Fund  Nine for the  initial
deposits relating to the establishment of the ICON 126 maintenance reserves paid
on the Partnership's  behalf by Fund Nine. The Partnership  anticipates repaying
the $75,000 to Fund Nine during December 2006.

                                       12

<PAGE>

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


(9)    Transactions with Related Parties - continued

     Fees and other expenses  charged to operations by the  Partnership and paid
to the General  Partner or its  affiliates  for the three and nine months  ended
September 30, 2006 and 2005, were as follows:

<TABLE>
<CAPTION>

                                                      Three Months Ended            Nine Months Ended
                                                         September 30,               September  30,
                                                 -------------------------     -----------------------------
                                                    2006          2005            2006             2005
                                                 --------       ----------     -----------       -----------
<S>                                              <C>            <C>            <C>               <C>
 Management fees                                 $      -       $  362,009     $   410,842       $ 1,087,113
 Administrative expense reimbursements                  -          114,042         161,980           431,223
                                                 --------       ----------     -----------       -----------

                                                 $      -       $  476,051     $   572,822       $ 1,518,336
                                                 ========       ==========     ===========       ===========
</TABLE>

(10)   Recent Accounting Pronouncements

     In September 2006, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial  Accounting  Standards 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  generally  accepted  accounting  principal  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  but does not currently
believe it will have a material impact on the consolidated financial statements.

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

                                       13


<PAGE>


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

     The  following is a  discussion  of our results of  operations  and current
financial  position.  This  discussion  should be read in  conjunction  with our
unaudited condensed consolidated financial statements and related notes included
elsewhere  in this  report,  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, 2005.

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

Forward-Looking Statements

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

Overview

     We are an equipment  leasing  business formed on February 7, 2000. We began
active  operations on June 14, 2000. We are primarily engaged in the business of
acquiring  equipment  subject  to  lease  and,  to a  lesser  degree,  acquiring
ownership rights to items of leased equipment at lease  expiration.  Some of our
equipment  leases are acquired for cash and are expected to provide current cash
flow, which we refer to as "income"  leases.  The majority of the purchase price
of our other equipment leases is financed, so these leases generate little or no
current cash flow because substantially all of the rental payments received from
a lessee are paid to a lender. For these "growth" leases, we anticipate that the
future  value of the  leased  equipment  will  exceed  the cash  portion  of the
purchase  price paid for the equipment.  We are currently in our  "reinvestment"
phase,  wherein we seek to purchase  equipment  from time to time through  April
2007.

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

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

                                       14

<PAGE>

Air Transportation Equipment:

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

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

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

Other Equipment:

o    We have a 97.73%  interest in ICON  Cheyenne  LLC.  ICON  Cheyenne LLC is a
     joint venture with certain affiliates of our General Partner, which holds a
     portfolio of 7 active leases with expiration dates through  September 2007.
     The  portfolio  consists  of over the  road  rolling  stock,  manufacturing
     equipment and materials handling equipment.

o    We have a 74.87%  interest in ICON SPK 2023-A LLC. ICON SPK 2023-A LLC is a
     joint venture with certain affiliates of our General Partner, which holds a
     portfolio of 5 active leases with expiration  dates through April 2008. The
     portfolio   consists  of  various  equipment  leases,   including  material
     handling, telecommunication and computer equipment.

Lease and Other Significant Transactions

K-Mart Corporation Extensions

     We had a 100%  interest in four lease  schedules  consisting of 128 Noritsu
Optical/Digital  photo  processing  mini-labs  which were  subject to lease with
K-Mart.  On April 30,  2006 and May 31,  2006,  two of our  leases  with  K-Mart
expired  and,  pursuant to the terms of the leases,  they were  extended  for an
additional  90 days.  We were  treating  these leases as  month-to-month  leases
beginning  on May 1, 2006 and on June 1,  2006,  respectively.  Accordingly,  we
reclassified   approximately  $285,000  and  $119,000,   respectively,   of  the
unguaranteed residual values related to these assets to investments in operating
leases.  These lease  extensions  ended on or before  September 30, 2006, and we
reclassified the net book value of this equipment to equipment held for sale.

     A third lease with K-Mart,  expired on August 31, 2006 and we  reclassified
the net book value of this  equipment of $37,120 to  equipment  held for sale at
September  30,  2006.

     At September 30, 2006, our General  Partner  determined,  based upon recent
negotiations with potential buyers, that the Noritsu  Optical/Digital  equipment
held by K-Mart was impaired.  Accordingly,  we recorded an  impairment  loss for
approximately  $320,000 to more closely  approximate  the adjusted book value to
the current estimated fair value of the Noritsu Optical/Digital  equipment,  net
of estimated selling costs.

New Accounting Pronouncements

     In  September  2006,  The  Financial   Accounting  Standards  Board  issued
Statement of Financial  Accounting  Standards  ("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
(CON) 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  but does not currently  believe it will have a material impact on
the financial statements.

                                       15


<PAGE>

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

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

     We are currently in our  reinvestment  period and  anticipate  entering our
liquidation  period on or about  April 17,  2007,  unless  our  General  Partner
extends the reinvestment period,  which it may do, at its discretion,  for up to
an additional two and one half years. While in the reinvestment  period, we will
continue to look for  equipment  leases to purchase,  either with cash or with a
combination of cash and financing. As such, we expect our revenue will fluctuate
due to our selling  some  equipment  leases  while  purchasing  other  equipment
leases.  We also  expect to have  gains and losses  from the sales of  equipment
during this time period. As for our expenses,  we anticipate interest expense to
decrease as our outstanding debt decreases.  If we enter into an equipment lease
where we finance a portion of the  purchase  price then  interest  expense  will
increase.

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

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

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


<TABLE>
<CAPTION>

                                                                           Three Months Ended September 30,
                                                                    -------------------------------------------
                                                                      2006              2005           Change
                                                                    ----------       ----------     -----------
<S>                                                                 <C>              <C>            <C>
 Total revenue                                                      $2,728,446       $5,638,764     $(2,910,318)
                                                                    ==========       ==========     ===========

 Rental income                                                      $3,505,650       $5,062,306     $(1,556,656)
 Finance income                                                     $   21,963       $  107,067     $   (85,104)
 (Loss) income from investments in joint ventures                   $ (727,631)      $  120,374     $  (848,005)
 Net (loss) gain on sales of equipment                              $ (103,755)      $  172,947     $  (276,702)
 Interest and other income                                          $   32,219       $  176,070     $  (143,851)

</TABLE>

     Total  revenue for the 2006  Quarter  decreased  $2,910,318,  or 51.6%,  as
compared to the 2005 Quarter. The decrease in rental income was primarily due to
the sale, in October 2005, of a flight simulator  previously on lease to British
Aerospace,  Inc.,  which was included in rental  income for the 2005 Quarter but
not for the 2006 Quarter. In addition,  during March 2006, we extended our lease
with Cathay and the extension included a reduction in monthly rental payments of
$150,000.  The decrease in finance income was consistent with the lease terms of
our  finance  leases and we expect the income to  continue to decrease as we get
closer to the expiration of our finance  leases.  The decrease in our net income
from  investments  in joint  ventures was primarily  due to the lease  extension
completed  during  March  2006,  which  reduced  the rental  income of our joint
venture,  ICON  Aircraft  126  LLC,  whose  sole  asset is an  Airbus  A340-313X
aircraft. The decrease in net (loss) gain on sales of equipment is primarily due
to less  equipment  sales from two of our majority  owned joint  ventures,  ICON
Cheyenne LLC and ICON SPK-2023 A LLC.

                                       16
<PAGE>

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

<TABLE>
<CAPTION>

                                                                            Three Months Ended September 30,
                                                                    --------------------------------------------
                                                                       2006             2005            Change
                                                                    ----------       ----------        ---------
<S>                                                                 <C>              <C>               <C>
 Total expenses                                                     $4,613,686       $4,664,182        $ (50,496)
                                                                    ==========       ==========        =========

 Impairment loss                                                    $  319,770       $        -        $ 319,770
 Depreciation and amortization                                      $2,828,231       $3,015,761        $(187,530)
 Interest                                                           $1,092,317       $1,048,566        $  43,751
 Management fees - General Partner                                  $        -       $  362,009        $(362,009)
 Administrative expense reimbursements - General Partner            $        -       $  114,042        $(114,042)
 General and administrative                                         $   87,983       $   41,223        $  46,760
 Minority interest                                                  $  285,385       $   82,581        $ 202,804

</TABLE>

     Total expenses for the 2006 Quarter  decreased  $50,496,  or 1.1%, from the
2005 Quarter. During the 2006 Quarter our General Partner determined, based upon
recent negotiations with potential buyers, that the equipment held by K-Mart was
impaired. Accordingly, we recorded an impairment loss for approximately $320,000
to more closely  approximate  the adjusted  book value to the current  estimated
fair value of the equipment.  The decrease in depreciation  and amortization was
primarily  attributable  to the sales of  equipment  in several of our  majority
owned joint ventures, ICON Cheyenne LLC and ICON SPK 2023-A LLC during 2006. The
decrease of both management fees - General  Partner and  administrative  expense
reimbursements  - General  Partner  is due to our  General  Partner's  decision,
effective May 1, 2006, to waive all future  management  fees and  administrative
expense reimbursements, although, the General Partner continues to provide these
services.  Such services  include the collection of lease payments from lessees,
re-leasing services in connection with equipment which is off-lease, inspections
of the equipment, liaison with and general supervision of lessees to assure that
the equipment is being properly operated and maintained,  monitoring performance
by the  lessees  of their  obligations  under  the  leases  and the  payment  of
operating expenses.

Net (Loss) Income

     As a result of the  foregoing  factors,  the net loss for 2006  Quarter was
$(1,885,240),  as compared to net income for 2005 Quarter of  $974,582.  The net
loss per weighted average number of limited  partnership  units  outstanding for
the 2006  Quarter was $(2.52) as  compared  to net income per  weighted  average
number of limited partnership units outstanding for 2005 Quarter of $1.30.

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

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

<TABLE>
<CAPTION>

                                                                             Nine Months Ended September 30,
                                                                    ---------------------------------------------
                                                                        2006             2005            Change
                                                                    ------------     -----------      -----------
<S>                                                                 <C>              <C>             <C>
 Total revenue                                                      $ 10,538,785     $16,787,610     $(6,248,825)
                                                                    ============     ===========      ===========

 Rental income                                                      $ 11,688,675     $15,174,518      $(3,485,843)
 Finance income                                                     $    126,044     $   477,915      $  (351,871)
 (Loss) income from investments in joint ventures                   $ (1,722,039)    $   384,461      $(2,106,500)
 Net (loss) gain on sales of equipment                              $    342,558     $    35,894      $   306,664
 Net gain on sale of investment in unguaranteed                     $          -     $   320,097      $  (320,097)
 Interest and other income                                          $    103,547     $   394,725      $  (291,178)

</TABLE>

                                       17
<PAGE>

     Total  revenue  for the 2006  Period  decreased  $6,248,825  or  37.2%,  as
compared to the 2005 Period.  The decrease in rental income was primarily due to
the sale, in October 2005, of a flight simulator  previously on lease to British
Aerospace, Inc., which was included in rental income for the 2005 Period but not
for the 2006 Period. In addition,  during March 2006, we extended our lease with
Cathay and the  extension  included a reduction  in monthly  rental  payments of
$150,000.  The decrease in finance income was consistent with the lease terms of
our  finance  leases and we expect the income to  continue to decrease as we get
closer to the expiration of our finance  leases.  The decrease in our net income
from  investments  in joint  ventures  was  partially  due the  lease  extension
completed  during  March  2006,  which  reduced  the rental  income of our joint
venture,  ICON  Aircraft  126  LLC,  whose  sole  asset is an  Airbus  A340-313X
aircraft.  Additionally,  ICON  Aircraft 126 LLC incurred a one-time  charge for
maintenance  overhaul costs of approximately  $1,153,000 in the 2006 Period. The
increase in net gain on sales of equipment is primarily  due to equipment  sales
in two of our  majority  owned  joint  ventures,  ICON  Cheyenne,  LLC and  ICON
SPK-2023 A LLC.

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

<TABLE>
<CAPTION>

                                                                             Nine Months Ended September 30,
                                                                    ----------------------------------------------
                                                                       2006             2005             Change
                                                                    ------------     -----------      ------------
<S>                                                                 <C>              <C>              <C>
 Total expenses                                                     $ 13,739,959     $15,357,254      $(1,617,295)
                                                                    ============     ===========      ============

 Impairment loss                                                    $    319,770     $         -      $   319,770
 Depreciation and amortization                                      $  8,087,923     $ 9,779,056      $(1,691,133)
 Interest                                                           $  2,834,886     $ 3,313,697      $  (478,811)
 Maintenance expense                                                $  1,152,698     $         -      $ 1,152,698
 Management fees - General Partner                                  $    410,842     $ 1,087,113      $  (676,271)
 Administrative expense reimbursements - General Partner            $    161,980     $   431,223      $  (269,243)
 General and administrative                                         $    434,033     $   601,672      $  (167,639)
 Minority interest                                                  $    337,827     $   144,493      $   193,334

</TABLE>

     Total expenses for the 2006 Period decreased $1,617,295, or 10.5%, from the
2005 Period.  During the 2006 Period our General Partner determined,  based upon
recent negotiations with potential buyers, that the equipment held by K-Mart was
impaired. Accordingly, we recorded an impairment loss for approximately $320,000
to more closely  approximate  the adjusted  book value to the current  estimated
fair value of the equipment.  The decrease in depreciation  and amortization was
primarily  attributable  to the sales of  equipment  in several of our  majority
owned joint ventures, ICON Cheyenne LLC and ICON SPK 2023-A LLC during 2005. The
decrease in interest  expense was primarily  attributable to the decrease in the
outstanding  balance of our  non-recourse  debt  between the 2006 Period and the
2005 Period.  The increase in maintenance  expense,  which is a one-time charge,
was due solely to required  maintenance  overhaul  costs  incurred on our Airbus
A340-313X  aircraft.  The decrease of both management fees - General Partner and
administrative  expense  reimbursements  - General Partner is due to our General
Partner's  decision,  effective May 1, 2006, to waive all future management fees
and  administrative  expense  reimbursements,   although,  the  General  Partner
continues to provide these  services.  Such services  include the  collection of
lease payments from lessees,  re-leasing  services in connection  with equipment
which is  off-lease,  inspections  of the  equipment,  liaison  with and general
supervision of lessees to assure that the equipment is being  properly  operated
and maintained, monitoring performance by the lessees of their obligations under
the leases and the payment of  operating  expenses.  The decrease in general and
administrative  is due to primarily to a decrease in professional  fees incurred
during the 2005  Period  relating  to the K-Mart  litigation,  which was settled
during June 2005.

Net (Loss) Income

     As a result of the  foregoing  factors,  the net loss for 2006  Period  was
$(3,201,174),  as compared to net income for 2005 Period of $1,430,356.  The net
loss per weighted average number of limited  partnership  units  outstanding for
the 2006 Period was  $(4.27),  as compared  to net income per  weighted  average
number of limited partnership units outstanding for 2005 Period of $1.91.


                                       18
<PAGE>

Liquidity and Capital Resources

Sources and Uses of Cash

     At  September  30,  2006,  we had cash and cash  equivalents  of  $875,447.
Historically,  our main source of cash was from investing  activities.  Our main
use of  cash  was  generally  for  financing  activities  in the  form  of  cash
distributions to our partners.

     Our main  sources  of cash  during  the 2006  Period  were  primarily  from
operating and investing  activities.  Our net cash from operating activities was
approximately $1,582,000, of which the collection of principal payments from our
finance  leases  totaled  approximately  $631,000.  Our main source of cash from
investing  activities  was  approximately  $924,000 from the sales of equipment.
Additionally,  we drew  down  approximately  $2,300,000  from our line of credit
during the 2006 Period which was used as working capital.

     Our main use of cash during the 2006 Period was for  financing  activities.
Our primary use of cash for financing  activities was  distribution  payments to
our  partners  of  approximately   $4,497,000  and  the  redemption  of  limited
partnership units of approximately $51,000.

Financings and Borrowings

     We have both non-recourse and recourse debt  obligations.  Our non-recourse
debt consists of notes payable in which the lenders have a security  interest in
the equipment and an assignment  of the rental  payments  under the leases.  The
lenders  are  being  paid  directly  by  the  lessees.   Our  non-recourse  debt
obligations  accrue interest at rates ranging from 4.035% per year to 9.489% per
year.  The  outstanding  balance of our  non-recourse  debt was  $53,739,039  at
September 30, 2006.

Revolving Credit Facility

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

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

                                       19

<PAGE>

     In addition,  on August 31, 2005, the Borrowers entered into a Contribution
Agreement (the "Contribution  Agreement"),  pursuant to which the Borrowers have
agreed to certain  restrictions  on the  amounts  and terms of their  respective
borrowings  under the  Facility  in order to  minimize  the risk that a Borrower
would be unable to repay its portion of the  outstanding  obligations  under the
Facility  at any time.  These  restrictions  include,  but are not  limited  to,
borrowing  in  excess  of the  lesser  of  (a) an  amount  each  Borrower  could
reasonably  expect to repay in one year from its projected cash flow, or (b) the
greater of (i) the borrowing  base, as defined in the  Agreement,  as applied to
such Borrower and (ii) 50% of the net worth of such Borrower.  The  Contribution
Agreement  also provides  that, in the event a Borrower pays an amount under the
Contribution Agreement in excess of its share of the total obligations under the
Facility,  whether  by reason of an event of  default  or  otherwise,  the other
Borrowers will immediately  make a contribution  payment to such Borrower and in
such  amount  that the  aggregate  amount  paid by each  Borrower  reflects  its
allocable share of the aggregate obligations under the Facility.  The Borrowers'
obligations to each other under the Contribution Agreement are collateralized by
a  subordinate  lien  on the  assets  of each  Borrower.  The  Borrowers  are in
compliance with the Contribution  Agreement at September 30, 2006 and no amounts
are due to or payable by the Partnership under the Contribution Agreement.

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

     At September 30, 2006,  aggregate  borrowings  by all  Borrowers  under the
Facility  amounted  to  $2,340,000,  of which  we  currently  have  all  amounts
outstanding under the Facility.

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

Distributions

     We pay monthly  distributions  to our limited  partners  beginning with the
first month after the limited partners' admission through the termination of the
operating  period,  which we  anticipate  will be on or about April 16, 2007. We
paid  distributions  to our limited partners for the nine months ended September
30, 2006 of $4,452,118.  We paid or accrued distributions to our General Partner
for the nine months ended September 30, 2006 of $44,971.

Contractual Obligations and Commitments and Off Balance Sheet Transactions

     We refinanced the  non-recourse  debt associated with our 100% owned Cathay
aircraft  which was  originally  due on March 14,  2006 and  required  a balloon
payment of approximately $52,850,000. We established,  under the original lease,
a reserve account totaling $281,868 which was used to reduce the balloon payment
to $52,568,132. We refinanced $52,568,132,  which accrues interest at LIBOR plus
1.165% (which was 6.535% at September 30, 2006),  matures on October 1, 2011 and
has a balloon payment of approximately  $32,000,000.  The variable interest rate
of the refinanced non-recourse debt was fixed at 6.1095% automatically under the
debt  agreement on September 14, 2006,  effective  October 3, 2006. At September
30, 2006, the outstanding  balance of the non-recourse debt was $50,051,765. We
do not have any off balance sheet transactions.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

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


                                       20
<PAGE>

     Our  Facility  carries a floating  interest  rate that is tied to the prime
rate and, at our option for any five  advances  over the life of the Facility at
the London  Interbank  Offered Rate. Therefore,  our statement of income and our
cash  flows will be exposed to changes  in  interest  rates.  In  addition,  the
non-recourse  debt  obligations  associated  with the Cathay  aircrafts  carried
floating  interest  rates,  which were fixed  effective  October 3, 2006.  A one
percentage  point  increase in LIBOR  would  cause an  increase to our  interest
expense of approximately $500,000. We historically have engaged in interest rate
hedging activities related to our floating rate debt.


Item 4.  Controls and Procedures

Evaluation of disclosure controls and procedures

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

     While evaluating our General Partner's  disclosure controls and procedures,
our General Partner recognized that greater internal controls were needed to aid
in a more efficient closing of our financial  statements,  thereby requiring our
General  Partner to hire  additional  skilled  accounting  staff to support  the
senior vice president of accounting  hired by our General  Partner at the end of
the third quarter of 2004. In addition, our General Partner hired two additional
accounting  staff members during 2005 who are certified  public  accountants and
are  experienced  with public  reporting  entities.  Subsequently  in 2006,  our
General Partner hired an additional  accounting  staff member who is a certified
public  accountant and experienced with public reporting  entities.  Our General
Partner will  continue to evaluate its  disclosure  controls and  procedures  to
determine their effectiveness and adequacy and will take the steps necessary, in
our General Partner's  opinion,  to ensure the adequacy of our General Partner's
disclosure controls and procedures.

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

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


                                       21
<PAGE>

                           PART II - OTHER INFORMATION

Item 1 - Legal Proceedings

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

Item 1A. Risk Factors

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

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

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

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

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

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



<TABLE>
<CAPTION>

                                               Total Number of
                                                Limited Partner              Price Paid Per
                                                    Units                   Limited Partner
                                                   Redeemed                      Units
<S>                                                   <C>                         <C>
January 1, 2006 through January 31, 2006               -                   $       -
February 1, 2006 through February 28, 2006          1,050                  $     42.77
March 1, 2006 through February 28, 2006                -                   $       -
April 1, 2006 through April 30, 2006                   -                   $       -
May 1, 2006 through May 31, 2006                      250                  $     24.90
June 1, 2006 through June 30, 2006                     -                   $       -
July 1, 2006 through July 31, 2006                     -                   $       -
August 1, 2006 through August 31, 2006                 -                   $       -
September 1, 2006 through September 31, 2006           -                   $       -

</TABLE>


                                       22
<PAGE>

Item 3.  Defaults Upon Senior Securities

     Not applicable.


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

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

Item 5.  Other Information

         Not applicable.

Item 6.  Exhibits

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

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

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

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



                                   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 17, 2006

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

Date: November 17, 2006

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

                                       23