FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended December 31, 2001

or

( )   TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______
Commission file number        0-21718



BOSTON CAPITAL TAX CREDIT FUND III L.P.(Exact name of registrant as specified in its charter)



|Delaware                          | 52-1749505         
|--------------------------------- | -------------------
|(State or other jurisdiction      | (I.R.S. Employer   
|of incorporation or organization) | Identification No.)



One Boston Place, Suite 2100, Boston, Massachusetts  02108(Address of principal executive offices)           (Zip Code)

Registrants telephone number, including area code (617)624-8900

(Former name, former address and former fiscal year, if changed since last report)

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 preceeding 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.



|Yes | X |  | No | _
|--- | - |  | -- | -









BOSTON CAPITAL TAX CREDIT FUND III L.P.



QUARTERLY REPORT ON FORM 10-QFOR THE QUARTER ENDED DECEMBER 31, 2001



TABLE OF CONTENTS

FOR THE QUARTER ENDED DECEMBER 31, 2001





























Statements_of_Operations_Series_1517

Statements_of_Operations_Series_1618

Statements_of_Operations_Series_1719

Statements_of_Operations_Series_1820

Statements_of_Operations_Series_1921

Changes_in_Partners_Capital22

Changes_in_Partners_Capital_Series_1523

Changes_in_Partners_Capital_Series_1623

Changes_in_Partners_Capital_Series_1724

Changes_in_Partners_Capital_Series_1824

Changes_in_Partners_Capital_Series_1925

Statements_of_Cash_Flows26

nine MONTHS Ended dectember 31

Statements_of_Cash_Flows_Series_1528

Statements_of_Cash_Flows_Series_1630

Statements_of_Cash_Flows_Series_1732

Statements_of_Cash_Flows_Series_1834

Statements_of_Cash_Flows_Series_1936

Notes_to_Financial_Statements*







Cost

Note_C_Related_Party_Transactions40

Note_D_Investments41

Combined_Statements_of_Operations43

Combined_Statements_Series_1543

Combined_Statements_Series_1644

Combined_Statements_Series_1745

Combined_Statements_Series_1846

Combined_Statements_Series_19*







Part_II_Other_Information55

SIGNATURES	56











Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS



|                                                                                                                                                                                                | December 31,
2001
(Unaudited) | March 31,
2001
(Audited)
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------- | ------------------------
|ASSETS                                                                                                                                                                                          |                               |                         
|INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)                                                                                                                                                | $ 78,285,814                  | $ 85,319,858            
|                                                                                                                                                                                                |                               |                         
|OTHER ASSETS                                                                                                                                                                                    |                               |                         
|Cash and cash equivalents                                                                                                                                                                       | 1,741,627                     | 1,122,380               
|Investments                                                                                                                                                                                     | 433,596                       | 1,465,643               
|Notes receivable                                                                                                                                                                                | 1,309,982                     | 1,309,982               
|Deferred acquisition costs,
net of accumulated amortization
(Note B)                                                                                                                            | 1,422,782                     | 1,474,454               
|Other assets                                                                                                                                                                                    | 2,988,641                     | 3,032,043               
|                                                                                                                                                                                                | $86,182,442                   | $93,724,360             
|                                                                                                                                                                                                |                               |                         
|LIABILITIES                                                                                                                                                                                     |                               |                         
|                                                                                                                                                                                                |                               |                         
|Accounts payable & accrued expenses 
(Note C)                                                                                                                                                   | $      4,553                  | $      4,553            
|Accounts payable affiliates                                                                                                                                                                     | 16,391,015                    | 15,040,788              
|Capital contributions payable                                                                                                                                                                   | 1,384,034                     | 1,384,034               
|                                                                                                                                                                                                | 17,779,602                    | 16,429,375              
|                                                                                                                                                                                                |                               |                         
|PARTNERS CAPITAL                                                                                                                                                                                |                               |                         
|                                                                                                                                                                                                |                               |                         
|Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs; 
   21,996,102 issued and outstanding, 
   as of December 31, 2001 | 69,608,474                    | 78,411,698              
|General Partner                                                                                                                                                                                 | (1,205,634)                   | (1,116,713)             
|                                                                                                                                                                                                | 68,402,840                    | 77,294,985              
|                                                                                                                                                                                                | $86,182,442                   | $93,724,360             









The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 15



|                                                                                                                                                                                            | December 31,
2001(Unaudited) | March 31,
2001(Audited)
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | -----------------------
|ASSETS                                                                                                                                                                                      |                              |                        
|INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)                                                                                                                                            | $ 9,712,358                  | $10,617,785            
|                                                                                                                                                                                            |                              |                        
|OTHER ASSETS                                                                                                                                                                                |                              |                        
|Cash and cash equivalents                                                                                                                                                                   | 413,483                      | 229,627                
|Investments                                                                                                                                                                                 | -                            | 286,218                
|Notes receivable                                                                                                                                                                            | -                            | -                      
|Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)                                                                                                                  | 218,116                      | 226,000                
|Other assets                                                                                                                                                                                | 790,920                      | 799,327                
|                                                                                                                                                                                            | $11,134,877                  | $12,158,957            
|                                                                                                                                                                                            |                              |                        
|LIABILITIES                                                                                                                                                                                 |                              |                        
|                                                                                                                                                                                            |                              |                        
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                                             | $     1,145                  | $     1,145            
|Accounts payable affiliates                                                                                                                                                                 | 4,529,503                    | 4,218,465              
|Capital contributions payable                                                                                                                                                               | 16,206                       | 16,206                 
|                                                                                                                                                                                            | 4,546,854                    | 4,235,816              
|                                                                                                                                                                                            |                              |                        
|PARTNERS CAPITAL                                                                                                                                                                            |                              |                        
|                                                                                                                                                                                            |                              |                        
|Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and outstanding,
   as of December 31, 2001 | 6,854,814                    | 8,176,581              
|General Partner                                                                                                                                                                             | (266,791)                    | (253,440)              
|                                                                                                                                                                                            | 6,588,023                    | 7,923,141              
|                                                                                                                                                                                            | $11,134,877                  | $12,158,957            

The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 16



|                                                                                                                                                                                               | December 31,
2001(Unaudited) | March 31,
2001(Audited)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | -----------------------
|ASSETS                                                                                                                                                                                         |                              |                        
|INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)                                                                                                                                              | $18,557,625                  | $20,493,977            
|                                                                                                                                                                                               |                              |                        
|OTHER ASSETS                                                                                                                                                                                   |                              |                        
|Cash and cash equivalents                                                                                                                                                                      | 332,073                      | 113,123                
|Investments                                                                                                                                                                                    | 145,114                      | 535,809                
|Notes receivable                                                                                                                                                                               | -                            | -                      
|Deferred acquisition costs, 
   net of accumulated amortization 
  (Note B)                                                                                                                    | 349,683                      | 362,321                
|Other assets                                                                                                                                                                                   | 128,277                      | 138,036                
|                                                                                                                                                                                               | $19,512,772                  | $21,643,266            
|                                                                                                                                                                                               |                              |                        
|LIABILITIES                                                                                                                                                                                    |                              |                        
|                                                                                                                                                                                               |                              |                        
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                                                | $         -                  | $         -            
|Accounts payable affiliates                                                                                                                                                                    | 3,730,011                    | 3,411,025              
|Capital contributions payable                                                                                                                                                                  | 138,506                      | 138,506                
|                                                                                                                                                                                               | 3,868,517                    | 3,549,531              
|                                                                                                                                                                                               |                              |                        
|PARTNERS CAPITAL                                                                                                                                                                               |                              |                        
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and outstanding,
   as of December 31, 2001 | 15,954,422                   | 18,379,407             
|General Partner                                                                                                                                                                                | (310,167)                    | (285,672)              
|                                                                                                                                                                                               |                              |                        
|                                                                                                                                                                                               | 15,644,255                   | 18,093,735             
|                                                                                                                                                                                               | $19,512,772                  | $21,643,266            





The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 17



|                                                                                                                                                                                               | December 31,
2001(Unaudited) | March 31,
2001(Audited)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | -----------------------
|ASSETS                                                                                                                                                                                         |                              |                        
|INVESTMENTS IN OPERATING 
   PARTNERSHIPS (Note D)                                                                                                                                             | $18,091,113                  | $19,483,775            
|                                                                                                                                                                                               |                              |                        
|OTHER ASSETS                                                                                                                                                                                   |                              |                        
|Cash and cash equivalents                                                                                                                                                                      | 430,854                      | 397,129                
|Investments                                                                                                                                                                                    | -                            | -                      
|Notes receivable                                                                                                                                                                               | 1,309,982                    | 1,309,982              
|Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)                                                                                                                     | 314,886                      | 326,548                
|Other assets                                                                                                                                                                                   | 1,964,132                    | 1,985,681              
|                                                                                                                                                                                               | $22,110,967                  | $23,503,115            
|                                                                                                                                                                                               |                              |                        
|LIABILITIES                                                                                                                                                                                    |                              |                        
|                                                                                                                                                                                               |                              |                        
|Accounts payable & accrued expenses 
  (Note C)                                                                                                                                                | $         -                  | $         -            
|Accounts payable affiliates                                                                                                                                                                    | 5,033,370                    | 4,633,143              
|Capital contributions payable                                                                                                                                                                  | 1,186,768                    | 1,186,768              
|                                                                                                                                                                                               | 6,220,138                    | 5,819,911              
|                                                                                                                                                                                               |                              |                        
|PARTNERS CAPITAL                                                                                                                                                                               |                              |                        
|                                                                                                                                                                                               |                              |                        
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and outstanding,
   as of December 31, 2001 | 16,161,601                   | 17,936,052             
|General Partner                                                                                                                                                                                | (270,772)                    | (252,848)              
|                                                                                                                                                                                               | 15,890,829                   | 17,683,204             
|                                                                                                                                                                                               | $22,110,967                  | $23,503,115            



The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 18



|                                                                                                                                                                                               | December 31,
2001(Unaudited) | March 31,
2001(Audited)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | -----------------------
|ASSETS                                                                                                                                                                                         |                              |                        
|INVESTMENTS IN OPERATING
PARTNERSHIPS (NOTE D)                                                                                                                                                 | $12,937,504                  | $14,578,072            
|                                                                                                                                                                                               |                              |                        
|OTHER ASSETS                                                                                                                                                                                   |                              |                        
|Cash and cash equivalents                                                                                                                                                                      | 325,302                      | 238,396                
|Investments                                                                                                                                                                                    | -                            | 107,824                
|Notes receivable                                                                                                                                                                               | -                            | -                      
|Deferred acquisition costs,
Net of accumulated amortization
(Note B)                                                                                                                           | 237,770                      | 246,330                
|Other assets                                                                                                                                                                                   | 89,184                       | 93,007                 
|                                                                                                                                                                                               | $13,589,760                  | $15,263,629            
|                                                                                                                                                                                               |                              |                        
|LIABILITIES                                                                                                                                                                                    |                              |                        
|                                                                                                                                                                                               |                              |                        
|Accounts payable & accrued expenses
(Note C)                                                                                                                                                   | $         -                  | $         -            
|Accounts payable affiliates                                                                                                                                                                    | 2,105,346                    | 1,893,885              
|Capital contributions payable                                                                                                                                                                  | 18,554                       | 18,554                 
|                                                                                                                                                                                               | 2,123,900                    | 1,912,439              
|                                                                                                                                                                                               |                              |                        
|PARTNERS CAPITAL                                                                                                                                                                               |                              |                        
|                                                                                                                                                                                               |                              |                        
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and outstanding,
   as of December 31, 2001 | 11,661,429                   | 13,527,906             
|General Partner                                                                                                                                                                                | (195,569)                    | (176,716)              
|                                                                                                                                                                                               | 11,465,860                   | 13,351,190             
|                                                                                                                                                                                               | $13,589,760                  | $15,263,629            

The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETSSeries 19





|                                                                                                                                                                                               | December 31,
2001(Unaudited) | March 31,
2001(Audited)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------- | -----------------------
|ASSETS                                                                                                                                                                                         |                              |                        
|INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)                                                                                                                                              | $18,987,214                  | $20,146,249            
|                                                                                                                                                                                               |                              |                        
|OTHER ASSETS                                                                                                                                                                                   |                              |                        
|Cash and cash equivalents                                                                                                                                                                      | 239,915                      | 144,105                
|Investments                                                                                                                                                                                    | 288,482                      | 535,792                
|Notes receivable                                                                                                                                                                               | -                            | -                      
|Deferred acquisition costs, 
   net of accumulated amortization
   (Note B)                                                                                                                    | 302,327                      | 313,255                
|Other assets                                                                                                                                                                                   | 16,128                       | 15,992                 
|                                                                                                                                                                                               | $19,834,066                  | $21,155,393            
|                                                                                                                                                                                               |                              |                        
|LIABILITIES                                                                                                                                                                                    |                              |                        
|                                                                                                                                                                                               |                              |                        
|Accounts payable & accrued expenses
   (Note C)                                                                                                                                                | $     3,408                  | $     3,408            
|Accounts payable affiliates                                                                                                                                                                    | 992,785                      | 884,270                
|Capital contributions payable                                                                                                                                                                  | 24,000                       | 24,000                 
|                                                                                                                                                                                               | 1,020,193                    | 911,678                
|                                                                                                                                                                                               |                              |                        
|PARTNERS CAPITAL                                                                                                                                                                               |                              |                        
|                                                                                                                                                                                               |                              |                        
|Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and outstanding,
   as of December 31, 2001 | 18,976,208                   | 20,391,752             
|General Partner                                                                                                                                                                                | (162,335)                    | (148,037)              
|                                                                                                                                                                                               | 18,813,873                   | 20,243,715             
|                                                                                                                                                                                               | $19,834,066                  | $21,155,393            



The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)





|                                                     | 2001         | 2000        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $     15,967 | $     34,550
|Other income                                         | 13,551       | 26,100      
|                                                     | 29,518       | 60,650      
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (2,422,991)  | (2,440,671) 
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 19,794       | 8,286       
|Fund management fee (Note C)                         | 513,892      | 633,491     
|Amortization                                         | 17,224       | 17,224      
|General and administrative expenses                  | 70,116       | 22,077      
|                                                     | 621,026      | 681,078     
|                                                     |              |             
|NET LOSS                                             | $(3,014,499) | $(3,061,099)
|                                                     |              |             
|Net loss allocated to limited partners               | $(2,984,354) | $(3,030,488)
|                                                     |              |             
|Net loss allocated to general partner                | $(30,145)    | $(30,611)   
|                                                     |              |             
|Net loss per BAC                                     | $(.68)       | $(.68)      
|                                                     |              |             





The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 15



|                                                     | 2001        | 2000       
|---------------------------------------------------- | ----------- | -----------
|                                                     |             |            
|Income                                               |             |            
|Interest income                                      | $     2,946 | $     5,019
|Other income                                         | 1,701       | 5,400      
|                                                     | 4,647       | 10,419     
|                                                     |             |            
|Share of loss from Operating 
  Partnerships(Note D) | (335,688)   | (456,267)  
|                                                     |             |            
|Expenses                                             |             |            
|Professional fees                                    | 4,194       | 2,588      
|Fund management fee                                  | 115,584     | 130,180    
|Amortization                                         | 2,628       | 2,628      
|General and administrative expenses                  | 13,868      | 3,566      
|                                                     | 136,274     | 138,962    
|                                                     |             |            
|NET LOSS                                             | $(467,315)  | $(584,810) 
|                                                     |             |            
|Net loss allocated to limited partners               | $(462,642)  | $(578,962) 
|                                                     |             |            
|Net loss allocated to general partner                | $(4,673)    | $(5,848)   
|                                                     |             |            
|Net loss per BAC                                     | $(.12)      | $(.15)     
|                                                     |             |            





The accompanying notes are an integral part of this statement







Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 16



|                                                     | 2001        | 2000       
|---------------------------------------------------- | ----------- | -----------
|                                                     |             |            
|Income                                               |             |            
|Interest income                                      | $     3,845 | $    11,225
|Other income                                         | 4,350       | 4,950      
|                                                     | 8,195       | 16,175     
|                                                     |             |            
|Share of loss from Operating 
  Partnerships(Note D) | (645,659)   | (797,318)  
|                                                     |             |            
|Expenses                                             |             |            
|Professional fees                                    | 6,558       | 832        
|Fund management fee                                  | 154,147     | 172,092    
|Amortization                                         | 4,213       | 4,213      
|General and administrative expenses                  | 16,893      | 6,080      
|                                                     | 181,811     | 183,217    
|                                                     |             |            
|NET LOSS                                             | $(819,275)  | $(964,360) 
|                                                     |             |            
|Net loss allocated to limited partners               | $(811,082)  | $(954,716) 
|                                                     |             |            
|Net loss allocated to general partner                | $(8,193)    | $(9,644)   
|                                                     |             |            
|Net loss per BAC                                     | $(.15)      | $(.18)     
|                                                     |             |            











The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)Series 17



|                                                     | 2001        | 2000       
|---------------------------------------------------- | ----------- | -----------
|                                                     |             |            
|Income                                               |             |            
|Interest income                                      | $     1,887 | $     3,118
|Other income                                         | 3,450       | 9,900      
|                                                     | 5,337       | 13,018     
|                                                     |             |            
|Share of loss from Operating 
  Partnerships(Note D) | (543,064)   | (419,157)  
|                                                     |             |            
|Expenses                                             |             |            
|Professional fees                                    | 3,559       | 1,966      
|Fund management fee                                  | 122,861     | 135,282    
|Amortization                                         | 3,887       | 3,887      
|General and administrative expenses                  | 14,993      | 4,053      
|                                                     | 145,300     | 145,188    
|                                                     |             |            
|NET LOSS                                             | $(683,027)  | $(551,327) 
|                                                     |             |            
|Net loss allocated to limited partners               | $(676,197)  | $(545,814) 
|                                                     |             |            
|Net loss allocated to general partner                | $(6,830)    | $(5,513)   
|                                                     |             |            
|Net loss per BAC                                     | $(.14)      | $(.11)     
|                                                     |             |            







The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)Series 18





|                                                     | 2001        | 2000       
|---------------------------------------------------- | ----------- | -----------
|                                                     |             |            
|Income                                               |             |            
|Interest Income                                      | $     1,127 | $     3,541
|Other income                                         | 1,950       | 2,250      
|                                                     | 3,077       | 5,791      
|                                                     |             |            
|Share of loss from Operating 
  Partnerships(Note D) | (526,808)   | (406,221)  
|                                                     |             |            
|Expenses                                             |             |            
|Professional fees                                    | 3,059       | 1,315      
|Fund management fee                                  | 21,433      | 93,100     
|Amortization                                         | 2,853       | 2,853      
|General and administrative expenses                  | 11,743      | 3,935      
|                                                     | 39,088      | 101,203    
|                                                     |             |            
|NET LOSS                                             | $(562,819)  | $(501,633) 
|                                                     |             |            
|Net loss allocated to limited partners               | $(557,191)  | $(496,617) 
|                                                     |             |            
|Net loss allocated to general partner                | $(5,628)    | $(5,016)   
|                                                     |             |            
|Net loss per BAC                                     | $(.15)      | $(.14)     
|                                                     |             |            







The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)Series 19



|                                                     | 2001        | 2000       
|---------------------------------------------------- | ----------- | -----------
|                                                     |             |            
|Income                                               |             |            
|Interest income                                      | $     6,162 | $    11,647
|Other income                                         | 2,100       | 3,600      
|                                                     | 8,262       | 15,247     
|                                                     |             |            
|Share of loss from Operating 
  Partnerships(Note D) | (371,772)   | (361,708)  
|                                                     |             |            
|Expenses                                             |             |            
|Professional fees                                    | 2,424       | 1,585      
|Fund management fee                                  | 99,867      | 102,837    
|Amortization                                         | 3,643       | 3,643      
|General and administrative expenses                  | 12,619      | 4,443      
|                                                     | 118,553     | 112,508    
|                                                     |             |            
|NET LOSS                                             | $(482,063)  | $(458,969) 
|                                                     |             |            
|Net loss allocated to limited partners               | $(477,242)  | $(454,379) 
|                                                     |             |            
|Net loss allocated to general partner                | $(4,821)    | $(4,590)   
|                                                     |             |            
|Net loss per BAC                                     | $(.12)      | $(.11)     
|                                                     |             |            

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)





|                                                     | 2001         | 2000        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $     67,934 | $     99,942
|Other income                                         | 27,955       | 27,099      
|                                                     | 95,889       | 127,041     
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (6,967,499)  | (7,054,673) 
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 190,725      | 137,097     
|Fund management fee (Note C)                         | 1,655,489    | 1,810,856   
|Amortization                                         | 51,672       | 51,672      
|General and administrative expenses                  | 122,649      | 100,303     
|                                                     | 2,020,535    | 2,099,928   
|                                                     |              |             
|NET LOSS                                             | $(8,892,145) | $(9,027,560)
|                                                     |              |             
|Net loss allocated to limited partners               | $(8,803,224) | $(8,937,284)
|                                                     |              |             
|Net loss allocated to general partner                | $(88,921)    | $(90,276)   
|                                                     |              |             
|Net loss per BAC                                     | $(2.01)      | $(2.01)     
|                                                     |              |             





The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 15



|                                                     | 2001         | 2000        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $     13,345 | $     14,194
|Other income                                         | 3,451        | 5,409       
|                                                     | 16,796       | 19,603      
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (905,112)    | (1,298,870) 
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 48,518       | 32,818      
|Fund management fee                                  | 366,815      | 372,034     
|Amortization                                         | 7,884        | 7,884       
|General and administrative expenses                  | 23,585       | 18,751      
|                                                     | 446,802      | 431,487     
|                                                     |              |             
|NET LOSS                                             | $(1,335,118) | $(1,710,754)
|                                                     |              |             
|Net loss allocated to limited partners               | $(1,321,767) | $(1,693,646)
|                                                     |              |             
|Net loss allocated to general partner                | $(13,351)    | $(17,108)   
|                                                     |              |             
|Net loss per BAC                                     | $(.34)       | $(.44)      
|                                                     |              |             





The accompanying notes are an integral part of this statement







Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)

Series 16



|                                                     | 2001         | 2000        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $     18,567 | $     32,365
|Other income                                         | 4,754        | 5,386       
|                                                     | 23,321       | 37,751      
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (1,925,169)  | (2,290,665) 
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 49,714       | 32,615      
|Fund management fee                                  | 455,392      | 494,881     
|Amortization                                         | 12,638       | 12,638      
|General and administrative expenses                  | 29,888       | 24,943      
|                                                     | 547,632      | 565,077     
|                                                     |              |             
|NET LOSS                                             | $(2,449,480) | $(2,817,991)
|                                                     |              |             
|Net loss allocated to limited partners               | $(2,424,985) | $(2,789,811)
|                                                     |              |             
|Net loss allocated to general partner                | $(24,495)    | $(28,180)   
|                                                     |              |             
|Net loss per BAC                                     | $(.45)       | $(.51)      
|                                                     |              |             











The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)Series 17



|                                                     | 2001         | 2000        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $      6,531 | $      9,363
|Other income                                         | 15,700       | 10,454      
|                                                     | 22,231       | 19,817      
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (1,388,792)  | (1,277,121) 
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 44,936       | 26,412      
|Fund management fee                                  | 342,153      | 380,605     
|Amortization                                         | 11,662       | 11,662      
|General and administrative expenses                  | 27,063       | 22,633      
|                                                     | 425,814      | 441,312     
|                                                     |              |             
|NET LOSS                                             | $(1,792,375) | $(1,698,616)
|                                                     |              |             
|Net loss allocated to limited partners               | $(1,774,451) | $(1,681,630)
|                                                     |              |             
|Net loss allocated to general partner                | $(17,924)    | $(16,986)   
|                                                     |              |             
|Net loss per BAC                                     | $(.35)       | $(.34)      
|                                                     |              |             







The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)Series 18





|                                                     | 2001         | 2000        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest Income                                      | $      6,073 | $     10,248
|Other income                                         | 1,950        | 2,250       
|                                                     | 8,023        | 12,498      
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (1,635,934)  | (1,154,565) 
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 26,234       | 21,296      
|Fund management fee                                  | 202,554      | 258,503     
|Amortization                                         | 8,560        | 8,560       
|General and administrative expenses                  | 20,071       | 15,962      
|                                                     | 257,419      | 304,321     
|                                                     |              |             
|NET LOSS                                             | $(1,885,330) | $(1,446,388)
|                                                     |              |             
|Net loss allocated to limited partners               | $(1,866,477) | $(1,431,924)
|                                                     |              |             
|Net loss allocated to general partner                | $(18,853)    | $(14,464)   
|                                                     |              |             
|Net loss per BAC                                     | $(.52)       | $(.40)      
|                                                     |              |             







The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)Series 19



|                                                     | 2001         | 2000        
|---------------------------------------------------- | ------------ | ------------
|                                                     |              |             
|Income                                               |              |             
|Interest income                                      | $     23,418 | $     33,772
|Other income                                         | 2,100        | 3,600       
|                                                     | 25,518       | 37,372      
|                                                     |              |             
|Share of loss from Operating 
  Partnerships(Note D) | (1,112,492)  | (1,033,452) 
|                                                     |              |             
|Expenses                                             |              |             
|Professional fees                                    | 21,323       | 23,956      
|Fund management fee                                  | 288,575      | 304,833     
|Amortization                                         | 10,928       | 10,928      
|General and administrative expenses                  | 22,042       | 18,014      
|                                                     | 342,868      | 357,731     
|                                                     |              |             
|NET LOSS                                             | $(1,429,842) | $(1,353,811)
|                                                     |              |             
|Net loss allocated to limited partners               | $(1,415,544) | $(1,340,273)
|                                                     |              |             
|Net loss allocated to general partner                | $(14,298)    | $(13,538)   
|                                                     |              |             
|Net loss per BAC                                     | $(.35)       | $(.33)      
|                                                     |              |             

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CHANGES IN PARTNERS' CAPITALNine Months Ended December 31, 2001
(Unaudited)



|                                                   | Assignees    | GeneralPartner | Total       
|-------------------------------------------------- | ------------ | -------------- | ------------
|                                                   |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2001      | $ 78,411,698 | $(1,116,713)   | $ 77,294,985
|                                                   |              |                |             
|                                                   |              |                |             
|Net income (loss)                                  | (8,803,224)  | (88,921)       | (8,892,145) 
|                                                   |              |                |             
|Partners' capital 
 (deficit),
  December 31, 2001 | $69,608,474  | $(1,205,634)   | $68,402,840 
|                                                   |              |                |             

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 2001
(Unaudited)



|                                                  | Assignees    | GeneralPartner | Total       
|------------------------------------------------- | ------------ | -------------- | ------------
|Series 15                                         |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2001     | $  8,176,581 | $  (253,440)   | $  7,923,141
|                                                  |              |                |             
|                                                  |              |                |             
|Net income (loss)                                 | (1,321,767)  | (13,351)       | (1,335,118) 
|                                                  |              |                |             
|Partners' capital 
 (deficit)
  December 31, 2001 | $6,854,814   | $(266,791)     | $6,588,023  
|                                                  |              |                |             
|                                                  |              |                |             
|Series 16                                         |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2001     | $ 18,379,407 | $  (285,672)   | $ 18,093,735
|                                                  |              |                |             
|                                                  |              |                |             
|Net income (loss)                                 | (2,424,985)  | (24,495)       | (2,449,480) 
|                                                  |              |                |             
|Partners' capital 
 (deficit)
  December 31, 2001 | $15,954,422  | $(310,167)     | $15,644,255 
|                                                  |              |                |             

The accompanying notes are an integral part of these statements.









Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 2001
(Unaudited)



|                                                   | Assignees    | GeneralPartner | Total       
|-------------------------------------------------- | ------------ | -------------- | ------------
|Series 17                                          |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2001      | $ 17,936,052 | $  (252,848)   | $ 17,683,204
|                                                   |              |                |             
|                                                   |              |                |             
|Net income (loss)                                  | (1,774,451)  | (17,924)       | (1,792,375) 
|                                                   |              |                |             
|Partners' capital 
 (deficit)
  December 31, 2001  | $16,161,601  | $(270,772)     | $15,890,829 
|                                                   |              |                |             
|                                                   |              |                |             
|Series 18                                          |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2001      | $ 13,527,906 | $  (176,716)   | $ 13,351,190
|                                                   |              |                |             
|                                                   |              |                |             
|Net income (loss)                                  | (1,866,477)  | (18,853)       | (1,885,330) 
|                                                   |              |                |             
|Partners' capital 
 (deficit),
  December 31, 2001 | $11,661,429  | $(195,569)     | $11,465,860 
|                                                   |              |                |             

The accompanying notes are an integral part of this statement









Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 2001
(Unaudited)



|                                                   | Assignees    | GeneralPartner | Total       
|-------------------------------------------------- | ------------ | -------------- | ------------
|Series 19                                          |              |                |             
|Partners' capital 
 (deficit)
  April 1, 2001      | $ 20,391,752 | $  (148,037)   | $ 20,243,715
|                                                   |              |                |             
|                                                   |              |                |             
|Net income (loss)                                  | (1,415,544)  | (14,298)       | (1,429,842) 
|                                                   |              |                |             
|Partners' capital 
 (deficit),
  December 31, 2001 | $18,976,208  | $(162,335)     | $18,813,873 
|                                                   |              |                |             

The accompanying notes are an integral part of this statement











Boston Capital Tax Credit Fund III L.P.STATEMENTS OF CASH FLOWSNine Months Ended December 31,
(Unaudited)



|                                                                     | 2001         | 2000        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $(8,892,145) | $(9,027,560)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | 66,545       | 21,776      
|Amortization                                                         | 51,672       | 51,672      
|Share of Loss from Operating
        Partnerships                    | 6,967,499    | 7,054,673   
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | -            | -           
|Decrease (Increase) in other assets                                  | 43,402       | (121,717)   
|Decrease (Increase) in accounts
        payable affiliates           | 1,350,227    | 1,713,387   
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | (412,800)    | (307,769)   
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | (31,500)    
|Advances to Operating Partnerships                                   | -            | 54,340      
|Investments                                                          | 1,032,047    | 88,122      
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | 1,032,047    | 110,962     

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)



|                                                           | 2001       | 2000      
|---------------------------------------------------------- | ---------- | ----------
|                                                           |            |           
|Continued                                                  |            |           
|                                                           |            |           
|Cash flows from financing activity:                        |            |           
|                                                           |            |           
|Credit adjusters received from
     Operating Partnerships | -          | -         
|                                                           |            |           
|Net cash (used in)provided by
        financing activity   | -          | -         
|                                                           |            |           
|                                                           |            |           
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 619,247    | (196,807) 
|                                                           |            |           
|Cash and cash equivalents, beginning                       | 1,122,380  | 1,754,063 
|                                                           |            |           
|Cash and cash equivalents, ending                          | $1,741,627 | $1,557,256
|                                                           |            |           

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 15



|                                                                     | 2001         | 2000        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $(1,335,118) | $(1,710,754)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | 315          | 12          
|Amortization                                                         | 7,884        | 7,884       
|Share of Loss from Operating
        Partnerships                    | 905,112      | 1,298,870   
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | -            | -           
|Decrease (Increase) in other assets                                  | 8,407        | 1,084       
|Decrease (Increase) in accounts
        payable affiliates           | 311,038      | 411,038     
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | (102,362)    | 8,134       
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | -           
|Advances to Operating Partnerships                                   | -            | 32,170      
|Investments                                                          | 286,218      | (6,771)     
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | 286,218      | 25,399      

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 15



|                                                           | 2001     | 2000    
|---------------------------------------------------------- | -------- | --------
|                                                           |          |         
|Continued                                                  |          |         
|                                                           |          |         
|Cash flows from financing activity:                        |          |         
|                                                           |          |         
|Credit adjusters received from
     Operating Partnerships | -        | -       
|                                                           |          |         
|Net cash (used in)provided by
        financing activity   | -        | -       
|                                                           |          |         
|                                                           |          |         
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 183,856  | 33,533  
|                                                           |          |         
|Cash and cash equivalents, beginning                       | 229,627  | 308,497 
|                                                           |          |         
|Cash and cash equivalents, ending                          | $413,483 | $342,030
|                                                           |          |         

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 16



|                                                                     | 2001         | 2000        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $(2,449,480) | $(2,817,991)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | 11,183       | 4,830       
|Amortization                                                         | 12,638       | 12,638      
|Share of Loss from Operating
        Partnerships                    | 1,925,169    | 2,290,665   
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | -            | -           
|Decrease (Increase) in accounts
        receivable                   | 9,759        | (6,559)     
|Decrease (Increase) in accounts
        payable affiliates           | 318,986      | 418,984     
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | (171,745)    | (97,433)    
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | (1,500)     
|Advances to Operating Partnerships                                   | -            | -           
|Investments                                                          | 390,695      | (20,405)    
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | 390,695      | (21,905)    

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 16



|                                                           | 2001     | 2000     
|---------------------------------------------------------- | -------- | ---------
|                                                           |          |          
|Continued                                                  |          |          
|                                                           |          |          
|Cash flows from financing activity:                        |          |          
|                                                           |          |          
|Credit adjusters received from
     Operating Partnerships | -        | -        
|                                                           |          |          
|Net cash (used in)provided by
        financing activity   | -        | -        
|                                                           |          |          
|                                                           |          |          
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 218,950  | (119,338)
|                                                           |          |          
|Cash and cash equivalents, beginning                       | 113,123  | 307,415  
|                                                           |          |          
|Cash and cash equivalents, ending                          | $332,073 | $188,077 
|                                                           |          |          

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)

Series 17



|                                                                     | 2001         | 2000        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $(1,792,375) | $(1,698,616)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | 3,870        | 1,202       
|Amortization                                                         | 11,662       | 11,662      
|Share of Loss from Operating
        Partnerships                    | 1,388,792    | 1,277,121   
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | -            | -           
|Decrease (Increase) in other assets                                  | 21,549       | (75,139)    
|Decrease (Increase) in accounts
        payable affiliates           | 400,227      | 488,397     
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | 33,725       | 4,627       
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | (20,000)    
|Advances to Operating Partnerships                                   | -            | 22,170      
|Investments                                                          | -            | -           
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | -            | 2,170       

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 17



|                                                           | 2001     | 2000    
|---------------------------------------------------------- | -------- | --------
|                                                           |          |         
|Continued                                                  |          |         
|                                                           |          |         
|Cash flows from financing activity:                        |          |         
|                                                           |          |         
|Credit adjusters received from
     Operating Partnerships | -        | -       
|                                                           |          |         
|Net cash (used in)provided by
        financing activity   | -        | -       
|                                                           |          |         
|                                                           |          |         
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 33,725   | 6,797   
|                                                           |          |         
|Cash and cash equivalents, beginning                       | 397,129  | 404,005 
|                                                           |          |         
|Cash and cash equivalents, ending                          | $430,854 | $410,802
|                                                           |          |         

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 18



|                                                                     | 2001         | 2000        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $(1,885,330) | $(1,446,388)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | 4,634        | 15,654      
|Amortization                                                         | 8,560        | 8,560       
|Share of Loss from Operating
        Partnerships                    | 1,635,934    | 1,154,565   
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | -            | -           
|Decrease (Increase) in accounts
        receivable                   | 3,823        | (29,302)    
|Decrease (Increase) in accounts
        payable affiliates           | 211,461      | 186,460     
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | (20,918)     | (110,451)   
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | -           
|Advances to Operating Partnerships                                   |              | -           
|Investments                                                          | 107,824      | (5,053)     
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | 107,824      | (5,053)     

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 18



|                                                           | 2001     | 2000     
|---------------------------------------------------------- | -------- | ---------
|                                                           |          |          
|Continued                                                  |          |          
|                                                           |          |          
|Cash flows from financing activity:                        |          |          
|                                                           |          |          
|Credit adjusters received from
     Operating Partnerships | -        | -        
|                                                           |          |          
|Net cash (used in)provided by
        financing activity   | -        | -        
|                                                           |          |          
|                                                           |          |          
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 86,906   | (115,504)
|                                                           |          |          
|Cash and cash equivalents, beginning                       | 238,396  | 377,094  
|                                                           |          |          
|Cash and cash equivalents, ending                          | $325,302 | $261,590 
|                                                           |          |          

The accompanying notes are an integral part of this statement



Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 19



|                                                                     | 2001         | 2000        
|-------------------------------------------------------------------- | ------------ | ------------
|Cash flows from operating activities:                                |              |             
|                                                                     |              |             
|Net Loss                                                             | $(1,429,842) | $(1,353,811)
|Adjustments                                                          |              |             
|Distributions from Operating
        Partnerships                    | 46,543       | 78          
|Amortization                                                         | 10,928       | 10,928      
|Share of Loss from Operating
        Partnerships                    | 1,112,492    | 1,033,452   
|Changes in assets and liabilities                                    |              |             
|(Decrease) Increase in accounts
        payable and accrued expenses | -            | -           
|Decrease (Increase) in accounts
        receivable                   | (136)        | (11,801)    
|Decrease (Increase) in accounts
        payable affiliates           | 108,515      | 208,508     
|                                                                     |              |             
|Net cash (used in) provided by 
        operating activities         | (151,500)    | (112,646)   
|                                                                     |              |             
|                                                                     |              |             
|Cash flows from investing activities:                                |              |             
|                                                                     |              |             
|Capital contributions paid to 
     Operating Partnerships           | -            | (10,000)    
|Advances to Operating Partnerships                                   | -            | -           
|Investments                                                          | 247,310      | 120,351     
|                                                                     |              |             
|Net cash (used in) provided by
     investing activities             | 247,310      | 110,351     

The accompanying notes are an integral part of this statement





Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)Series 19



|                                                           | 2001     | 2000    
|---------------------------------------------------------- | -------- | --------
|                                                           |          |         
|Continued                                                  |          |         
|                                                           |          |         
|Cash flows from financing activity:                        |          |         
|                                                           |          |         
|Credit adjusters received from
     Operating Partnerships | -        | -       
|                                                           |          |         
|Net cash (used in)provided by
        financing activity   | -        | -       
|                                                           |          |         
|                                                           |          |         
|INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS   | 95,810   | (2,295) 
|                                                           |          |         
|Cash and cash equivalents, beginning                       | 144,105  | 357,052 
|                                                           |          |         
|Cash and cash equivalents, ending                          | $239,915 | $354,757
|                                                           |          |         

The accompanying notes are an integral part of this statement







Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTSDecember 31, 2001

(Unaudited)



NOTE A - ORGANIZATION

Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws 
of the State of Delaware as of September 19, 1991 for the purpose of
acquiring, holding, and disposing of limited partnership interests in
Operating Partnerships which will acquire, develop, rehabilitate, operate and
own newly constructed, existing or rehabilitated low-income apartment
complexes ("Operating Partnerships").







Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2001
(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2001
and for the three and nine months then ended have been prepared by the 
Fund, without audit.  The Fund accounts for its investments in Operating 
Partnerships using the equity method, whereby the Fund adjusts its investment 
cost for its share of each Operating Partnership's results of operations and 
for any distributions received or accrued.  Costs incurred by the Fund in 
acquiring the investments in the Operating Partnerships are capitalized to the
investment account.  The Fund's accounting and financial reporting policies
are in conformity with generally accepted accounting principles and include
adjustments in  interim periods considered necessary for a fair presentation
of the results of operations. Such adjustments are of a normal recurring
nature.

Investments

The Fund has included in investments Certificates of Deposit with original
materities of one year or less.  These investments are carried at costs.







Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2001
(Unaudited)

Amortization

On July 1, 1995, the Fund began amortizing unallocated acquisition
costs over 330 months from April 1, 1995. As of December 31, 2001 the Fund has accumulated unallocated acquisition amortization totaling $470,555.  The
breakdown of accumulated unallocated acquisition amortization within the fund
as of December 31, 2001 and 2000 is as follows:



|          | 2001     | 2000    
|--------- | -------- | --------
|          |          |         
|Series 15 | $ 71,053 | $ 60,542
|Series 16 | 113,746  | 96,896  
|Series 17 | 112,865  | 97,315  
|Series 18 | 77,170   | 65,757  
|Series 19 | 95,721   | 81,151  
|          | $470,555 | $401,661



NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates
of the general partner, including Boston Capital Holdings LP, Boston Capital 
Partners, Inc., and Boston Capital Asset Management Limited Partnership as 
follows:

Boston Capital Partners, Inc. is entitled to asset acquisition fees for
selecting, evaluating, structuring, negotiating, and closing the Funds
acquisition of interests in the Operating Partnerships.   Prior to the quarter
ended December 31, 2001 all series had completed payment of all acquisition 
fees due to Boston Capital Partners, Inc.













NOTE C - RELATED PARTY TRANSACTIONS - CONTINUED

An annual fund management fee based on .5 percent of the aggregate cost
of all apartment complexes owned by the Operating Partnerships, has been
accrued to Boston Capital Asset Management Limited Partnership.  The fund
management fees accrued for the quarter ended December 31, 2001 and 2000 are 
as follows:



|          | 2001     | 2000    
|--------- | -------- | --------
|          |          |         
|Series 15 | $137,013 | $137,013
|Series 16 | 172,995  | 172,995 
|Series 17 | 140,925  | 140,925 
|Series 18 | 95,487   | 95,487  
|Series 19 | 102,837  | 102,837 
|          | $649,257 | $649,257

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2001 and 2000, the Fund had limited partnership 
interests in 241 Operating Partnerships which own or are constructing 
apartment complexes. The breakdown of Operating Partnerships within the Fund 
at December 31, 2001 and 2000 is as follows:





|          |    
|--------- | ---
|Series 15 | 68 
|Series 16 | 64 
|Series 17 | 49 
|Series 18 | 34 
|Series 19 | 26 
|          | 241



















Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - CONTINUED

Under the terms of the Fund's investment in each Operating Partnership,
the Fund is required to make capital contributions to the Operating
Partnerships.  These contributions are payable in installments over several
years upon each Operating Partnership achieving specified levels of
construction and/or operations.  The contributions payable at December 31, 
2001 and 2000 are as follows:



|          | 2001       | 2000      
|--------- | ---------- | ----------
|          |            |           
|Series 15 | $   16,206 | $   32,922
|Series 16 | 138,506    | 138,506   
|Series 17 | 1,186,768  | 1,186,768 
|Series 18 | 18,554     | 18,554    
|Series 19 | 24,000     | 24,000    
|          | $1,384,034 | $1,400,750



The Funds fiscal year ends March 31st of each year, while all the Operating
Partnerships' fiscal years are the calendar year.  Pursuant to the provisions
of each Operating Partnership Agreement, financial results for each of the
Operating Partnerships are provided to the Fund within 45 days after the close
of each Operating Partnerships quarterly period.  Accordingly, the current
financial results available for the Operating Partnerships are for the nine
months ended September 30, 2001.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30, 
(Unaudited)

Series 15



|                                                                        | 2001         | 2000        
|----------------------------------------------------------------------- | ------------ | ------------
|                                                                        |              |             
|Revenues                                                                |              |             
|Rental                                                                  | $  7,699,484 | $  7,474,844
|Interest and other                                                      | 410,510      | 280,934     
|                                                                        |              |             
|                                                                        | 8,109,994    | 7,755,778   
|                                                                        |              |             
|Expenses                                                                |              |             
|Interest                                                                | 2,185,866    | 2,102,708   
|Depreciation and amortization                                           | 2,584,915    | 2,695,399   
|Operating expenses                                                      | 5,124,816    | 4,850,228   
|                                                                        | 9,895,597    | 9,648,335   
|                                                                        |              |             
|NET LOSS                                                                | $(1,785,603) | $(1,892,557)
|                                                                        |              |             
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P. | $(905,112)   | $(1,298,870)
|                                                                        |              |             
|                                                                        |              |             
|Net loss allocated to other 
   Partners                                | $(17,856)    | $(18,926)   
|                                                                        |              |             
|Net loss suspended                                                      | $(862,635)   | $(574,761)  









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 16





|                                                                        | 2001         | 2000        
|----------------------------------------------------------------------- | ------------ | ------------
|                                                                        |              |             
|Revenues                                                                |              |             
|Rental                                                                  | $ 10,041,306 | $  9,976,395
|Interest and other                                                      | 790,312      | 510,202     
|                                                                        |              |             
|                                                                        | 10,831,618   | 10,486,597  
|                                                                        |              |             
|Expenses                                                                |              |             
|Interest                                                                | 2,982,297    | 2,812,217   
|Depreciation and amortization                                           | 3,593,036    | 3,695,680   
|Operating expenses                                                      | 6,586,789    | 6,556,844   
|                                                                        | 13,162,122   | 13,064,741  
|                                                                        |              |             
|NET LOSS                                                                | $(2,330,504) | $(2,578,144)
|                                                                        |              |             
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P. | $(1,925,169) | $(2,290,665)
|                                                                        |              |             
|                                                                        |              |             
|Net loss allocated to other 
   Partners                                | $(23,305)    | $(25,781)   
|                                                                        |              |             
|Net loss suspended                                                      | $(382,030)   | $(261,698)  









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 17



|                                                                        | 2001         | 2000        
|----------------------------------------------------------------------- | ------------ | ------------
|                                                                        |              |             
|Revenues                                                                |              |             
|Rental                                                                  | $  9,208,724 | $  8,839,203
|Interest and other                                                      | 440,922      | 336,380     
|                                                                        |              |             
|                                                                        | 9,649,646    | 9,175,583   
|                                                                        |              |             
|Expenses                                                                |              |             
|Interest                                                                | 3,002,715    | 2,759,122   
|Depreciation and amortization                                           | 2,889,526    | 2,798,661   
|Operating expenses                                                      | 5,485,715    | 5,067,389   
|                                                                        | 11,377,956   | 10,625,172  
|                                                                        |              |             
|NET LOSS                                                                | $(1,728,310) | $(1,449,589)
|                                                                        |              |             
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P. | $(1,388,792) | $(1,277,121)
|                                                                        |              |             
|                                                                        |              |             
|Net loss allocated to other 
   Partners                                | $(17,283)    | $(14,497)   
|                                                                        |              |             
|Net loss suspended                                                      | $(322,235)   | $(157,971)  









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to 
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 18



|                                                                        | 2001         | 2000        
|----------------------------------------------------------------------- | ------------ | ------------
|                                                                        |              |             
|Revenues                                                                |              |             
|Rental                                                                  | $  5,122,116 | $  4,986,525
|Interest and other                                                      | 246,694      | 279,914     
|                                                                        |              |             
|                                                                        | 5,368,810    | 5,266,439   
|                                                                        |              |             
|Expenses                                                                |              |             
|Interest                                                                | 1,577,800    | 1,414,803   
|Depreciation and amortization                                           | 1,926,784    | 1,882,759   
|Operating expenses                                                      | 3,590,152    | 3,179,524   
|                                                                        | 7,094,736    | 6,477,086   
|                                                                        |              |             
|NET LOSS                                                                | $(1,725,926) | $(1,210,647)
|                                                                        |              |             
|Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P. | $(1,635,934) | $(1,154,565)
|                                                                        |              |             
|                                                                        |              |             
|Net loss allocated to other 
   Partners                                | $(17,259)    | $(12,106)   
|                                                                        |              |             
|Net loss suspended                                                      | $(72,733)    | $(43,976)   









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 19

|                                                                   | 2001         | 2000        
|------------------------------------------------------------------ | ------------ | ------------
|                                                                   |              |             
|Revenues                                                           |              |             
|Rental                                                             | $  7,346,813 | $  7,068,453
|Interest and other                                                 | 255,465      | 209,817     
|                                                                   |              |             
|                                                                   | 7,602,278    | 7,278,270   
|                                                                   |              |             
|Expenses                                                           |              |             
|Interest                                                           | 2,501,175    | 2,414,328   
|Depreciation and amortization                                      | 2,153,555    | 2,207,371   
|Operating expenses                                                 | 4,152,732    | 3,722,378   
|                                                                   | 8,807,462    | 8,344,077   
|                                                                   |              |             
|NET LOSS                                                           | $(1,205,184) | $(1,065,807)
|                                                                   |              |             
|Net loss allocation to Boston
Capital Tax Credit Fund 
   III L.P. | $(1,112,492) | $(1,033,452)
|                                                                   |              |             
|                                                                   |              |             
|Net loss allocated to other 
   Partners                           | $(12,052)    | $(10,658)   
|                                                                   |              |             
|Net loss suspended                                                 | $(80,640)    | $(21,697)   









The Partnership accounts for its investments using the equity method of
accounting.  Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued.  However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions.  Excess losses are suspended for use in future years to
offset excess income.





Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2001
(Unaudited)

NOTE E - TAXABLE LOSS
   The Fund's taxable loss for the year ended March 31, 2002 is expected to
differ from its loss for financial reporting purposes.  This is primarily due
to accounting differences in depreciation incurred by the Operating
Partnerships and also differences between the equity method of accounting and
the IRS accounting methods.  No provision or benefit for income taxes has been
included in these financial statements since taxable income or loss passes
through to, and is reportable by, the partners and assignees individually

Item 2.  Management's Discussions and Analysis of Financial Condition and
Results of Operations

Liquidity

The Funds primary source of funds is the proceeds of its Public
Offering.  Other sources of liquidity will include (i) interest earned on
capital contributions held pending investment and on Working Capital Reserves
and (ii) cash distributions from operations of the operating Partnerships in
which the Fund has and will invest.  Interest income is expected to decrease
over the life of the Fund as capital contributions are paid to the Operating
Partnerships and Working Capital Reserves are expended.    The Fund does not
anticipate significant cash distributions from operations of the Operating
Partnerships.

The Fund is currently accruing the fund management fee.  Fund management
fees accrued during the quarter ended December 31, 2001 were $649,257 and 
total fund management fees accrued as of December 31, 2001 were $15,220,795.  
Pursuant to the Partnership Agreement, such liabilities will be deferred until 
the Fund receives sales of refinancing proceeds from Operating Partnerships 
which will be used to satisfy such liabilities.  The Funds working capital and 
sources of liquidity coupled with affiliated party liability accruals allow 
sufficient levels of liquidity to meet the third party obligations of the 
Fund.  The Fund is currently unaware of any trends which would create 
insufficient liquidity to meet future third party obligations of the Fund.

The Fund has recorded an additional $1,170,220 as payable to affiliates.  
This represents fundings to make advances and/or loans to certain Operating 
Partnerships in Series 15 and Series 17 of $213,564, and $956,656,
respectively.

Capital Resources

The Fund offered BACs in a Public Offering declared effective by the
Securities and Exchange Commission on January 24, 1992.  The Fund received
$38,705,000, $54,293,000, $50,000,000, $36,162,000 and $40,800,000
representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and 4,080,000 BACs
from investors admitted as BAC Holders in Series 15, Series 16, Series 17,
Series 18, and Series 19, respectively.  The Public Offering was completed on
December 17, 1993.

(Series 15)  The Fund commenced offering BACs in Series 15 on January 24,
1992.  Offers and sales of BACs in Series 15 were completed on June 26,
1992.  The Fund has committed proceeds to pay initial and additional
installments of capital contributions to 68 Operating Partnerships in the
amount of $28,257,701.

During the quarter ended December 31, 2001, none of Series 15 net 
offering proceeds had been used to pay capital contributions. Series 15 net 
offering proceeds in the amount of $16,206 remain to be used by the Fund to 
pay remaining capital contributions to the Operating Partnerships that Series 
15 has invested in as of December 31, 2001.

(Series 16)  The Fund commenced offering BACs in Series 16 on July 13, 1992.
Offers and sales of BACs in Series 16 were completed on December 28, 1992. The
Fund has committed proceeds to pay initial and additional installments of
capital contributions to 64 Operating Partnerships in the amount of
$39,579,774.

During the quarter ended December 31, 2001, none of Series 16 net 
offering proceeds had been used to pay capital contributions.  Series 16 net 
offering proceeds in the amount of $138,506 remain to be used by the Fund to 
pay remaining capital contributions to the Operating Partnerships that Series 
16 has invested in as of December 31, 2001.

(Series 17)  The Fund commenced offering BACs in Series 17 on January 24,
1993.  Offers and sales of BACs in Series 17 were completed on June 17, 1993.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 49 Operating Partnerships in the amount of
$36,538,204.

During the quarter ended December 31, 2001, none of Series 17 net 
offering proceeds had been used to pay capital contributions.  Series 17 has 
outstanding contributions payable in the amount of  $1,186,768 as of December 31, 2001.  Of the amount outstanding, $1,139,873 has been advanced or loaned 
to the Operating Partnerships.  The advances and loans will be converted to 
capital and the remaining contributions of $46,895 will be released from 
available net offering proceeds when the Operating Partnerships have achieved 
the conditions set forth in their partnership agreements.

(Series 18)  The Fund commenced offering BACs in Series 18 on June 17, 1993.
Offers and sales of BACs in Series 18 were completed on September 22, 1993.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 34 operating Partnerships in the amount of
$26,442,202.

During the quarter ended December 31, 2001, none of Series 18 net 
offering proceeds had been used to pay capital contributions.  Series 18 net 
offering proceeds in the amount of $18,554 remain to be used by the Fund to 
pay remaining capital contributions to the Operating Partnerships that Series 
18 has invested in as of December 31, 2001.

(Series 19)  The Fund commenced offering BACs in Series 19 on October 8,
1993.  Offers and sales of BACs in Series 19 were completed on December 17,
1993.  The Fund has committed proceeds to pay initial and additional
installments of capital contributions to 26 Operating Partnerships in the
amount of $29,614,506.

During the quarter ended December 31, 2001, none of Series 19 net 
offering proceeds had been used to pay capital contributions.  Series 19 net 
offering proceeds in the amount of $24,000 remain to be used by the Fund to 
pay remaining capital contributions to the Operating Partnerships that Series 
19 has invested in as of December 31, 2001.

Results of Operations

As of

The Fund incurred a fund management fee to Boston Capital Asset
Management Limited Partnerships (formerly Boston Capital Communications
Limited Partnership) in an amount equal to .5 percent of the aggregate cost of
the apartment complexes owned by the Operating Partnerships, less the amount
of certain asset management and reporting fees paid by the Operating
Partnerships.  The fund management fees incurred for the quarter ended
December 31, 2001 for Series 15, Series 16, Series 17, Series 18 and Series 
19 were $115,584, $154,147, $122,861, $21,433, and $99,867 respectively.

The Funds investment objectives do not include receipt of significant
cash distributions from the Operating Partnerships in which it has invested or
intends to invest.  The Funds investments in Operating Partnerships have been
made principally with a view towards realization of Federal Housing Tax
Credits for allocation to its partners and BAC holders.

Series 15

As of December 31, 2001 and 2000, the average qualified occupancy for 
the series was 100%.  The series had a total of 68 properties at December 31, 
2001, all of which were at 100% qualified occupancy.

For the nine months being reported Series 15 reflects a net loss from
Operating Partnerships of $1,785,603.  When adjusted for depreciation, which 
is a non-cash item, the Operating Partnerships reflect positive operations of
$799,312.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Operations continue to improve at Hidden Cove Apartments (Hidden Cove) as 
evidenced by stabilized occupancy and increased rental collections. Occupancy 
for the fouth quarter of 2001 averaged 97%.  To date, the property has been 
able to complete minor capital improvements and fund its replacement reserve 
account without financial assistance.  The property operated below breakeven 
for the year 2001 due to an unforeseen expense incurred to cure termite infestion.  Cash flow and reserves will continue to be utilized to make improvements necessary to maintain building safety.  The Operating General Partner has completed negotiations with the property's management company and has transferred the Operating General Partnership interest to that entity effective January 1, 2001.  The Operating General Partner has been negotiating to refinance the permanent mortgage.  The current lender is unwilling at this time to entertain any refinance proposal not involving a complete paydown of all outstanding debt, including all accrued interest.  It is not in the Partnerships best interest to structure a refinance as proposed.

In April of 2000, School Street I LP, (School Street Apartments - Phase 
I) inserted Marshall School Street I, LLC, as the Operating General Partner 
and property management company.  Since taking control, the management company 
completed the capital improvements program and improved the tenant selection 
criteria.  As a result, physical occupancy at the property has increased and stabilized.  During 2001 occupancy averaged 99%.  The improved occupancy and the improved tenant selection criteria increased cash flow significantly during 2001, but it still remains below breakeven.  The Operating General Partner continues to fund any operating cash deficits.  The mortgage, property taxes, insurance and payables are current.

On July 16, 2001 a grease fire occurred in one unit at Timmons Village (Timmons Village Limited Partnership).  Rehabilitation work has been completed and the unit is now occupied.  The property has been reimbursed $6,862 by the insurance.  This amount covers both the repair work and the lost rental income.

Series 16

As of December 31, 2001 and 2000, the average qualified occupancy for 
the series was 99.9%.  The series had a total of 64 properties at December 31, 2001.  Out of the total, 63 had 100% qualified occupancy.

For the nine months being reported Series 16 reflects a net loss from
Operating Partnerships of $2,330,504.  When adjusted for depreciation, which 
is a non-cash item, the Operating Partnerships reflect positive operations of
$1,262,532.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Cass Partners, L.P. (Fitzgerald Apartments) continues to operate below 
breakeven due to low occupancy.  An increased supply of affordable housing in 
the area with superior amenities hampered marketing efforts and made tenant 
retention difficult. Average physical occupancy for 2000 was 75%, down from an 
average of 85% in 1999.  Average occupancy for 2001 was 70%.  Property management lowered rents during June of 2001 by $50 per unit to better compete against the newer affordable housing complexes.  Additionally, commercial rental income in 2001 was significantly ahead of 2000 and will have a positive impact on cash flow.  However the property is not expected to breakeven during 2001.  Marketing efforts consist of referrals from the nearby Air Force Base, newspaper advertising and flyers.  The Investment Limited Partner has recommended further rent reductions and a plan to obtain additional parking for the project.  The recommendations are under review by project management.  The Operating General Partner continues to support the property financially.  The mortgage, taxes, insurance and accounts payable are current.

Series 17

As of December 31, 2001 and 2000, the average qualified occupancy for 
the series was 99.7%.  The series had a total of 49 properties at December 31, 2001.  Out of the total 48 had 100% qualified occupancy.

For the nine months being reported Series 17 reflects a net loss from
Operating Partnerships of $1,728,310.  When adjusted for depreciation, which, 
is a non-cash item, the Operating Partnerships reflect positive operations of
$1,161,216.  This is an interim period estimate; it is not necessarily 
indicative of the final year end results.

Annadale Housing Partners (Kingsview Manor & Estates) has historically 
reported net losses due to operational issues associated with the property.  Occupancy remains stable at 89% through the fourth quarter of 2001. Operations at the property continue to improve in 2001, partly due to a 14% increase in rental income over the prior year.  An affiliate of the management company assumed the General Partner responsibilities for the partnership, on January 1, 2001.  The property continues to breakeven, and is able to continue to fund capital improvements from operations.  The Investment Partner continues to monitor this situation.

The mortgage lender for Cypress Point Limited Partnership (Laurel Ridge 
Apartment) placed the partnership in default of its mortgage because the 
property failed to achieve the required debt service coverage ratio and failed 
to make its required real estate tax payment.  The existing loan terms 
provided for an interest rate adjustment after the initial five-year permanent 
mortgage period.  When this adjustment occurred there was a rate increase, 
which in turn increased the property's debt service payment, adversely 
affecting operations.  The Investment Limited Partner advanced funds to the 
partnership to bring the taxes current.  In September 2000, BCP Wisconsin 
LLC became the managing general partner of the partnership.  BCP Wisconsin LLC 
negotiated a standstill agreement with the lender in order to allow time to 
devise different options for dealing with existing loan defaults.  The lender 
was not amenable to the work out plan that BCP Wisconsin LLC had previously 
proposed.  BCP Wisconsin LLC ultimately decided that the interests of the 
property would best be served if it took out the existing lender under a 
refinancing with an alternate mortgage lender.  Application for refinancing 
was made with an alternate lender.  In June of 2001 the Investment General 
Partner refinanced the first mortgage and put in place BCP Cypress LLC as the 
new sole General Partner.  The refinancing provided significantly more 
favorable loan terms.  The capital improvement project at the property has been completed and has had a positive impact on rents.  No further funding advances from the Investment Limited Partner are expected to be required.  The loan proceeds from the refinancing has allowed repayment of all prior advances (including capital improvement work) from the Investment Limited Partner. Operations at the property are positive.

The area surrounding the property owned by California Investors VI LP (Orchard Park) continues to experience economic growth.  A high school has been built across the street from the front entrance of the community and opened during the third quarter. The location of this school will continue to enhance marketing efforts. Occupancy averaged 98% for the fourth quarter of 2001.  In 2001 the property has been able to operate at breakeven, while continuing to fund capital improvement projects.  This is in part due to a rent increase implemented in March 2001.  The increase was phased in as leases expired.  The full benefit of the increase will be evident in 2002.  In addition to the positive changes affecting this partnership, an affiliate of the management company assumed the General Partner responsibilities for the partnership on January 1, 2001, and is now responsible for funding all future operating deficits.

Physical occupancy at Palmetto Properties Ltd. (Palmetto Villas)  
for 2000 averaged 84%.  Occupancy at December 30, 2001 remains stable at 97%.  The property suffered from low occupancy in 1999 and the first half of 2000 due to poor on-site management and significant deferred maintenance 
issues.  As a result, the property management company was replaced in January 
2001.  Since the management company change occurred, occupancy levels have 
steadily increased as improvements have been made at the property and deferred 
maintenance has been addressed.  However, property taxes remain an issue.  Rural Development paid the 1998 delinquent taxes as an advance against the mortgage.  The 1999 taxes were recently paid from property operations.  The Investment General Partner is attempting to work with Rural Development to develop a workout plan to address the tax issue.  Fiscal year 2000 taxes remain delinquent.  The Investment General Partner continues negotiations with the current Operating General Partner aimed at removing him from the partnership.  The new management company has expressed interest in assuming the role of Operating General Partner, and based on the management company's performance to date, the partnership would benefit from this arrangement.

Mt. Vernon Associates, L.P. is a 76-unit building located in Mt. Vernon, NY.  The Partnership suffers from negative cash flow as a result of high operating expenses. The property has been able to meet obligations due to the Operating General Partner funding deficits.  As the management agent is an affiliate of the Operating General Partner, the Partnership has also been deferring management fees.  The New York State Department of Housing and Community Renwal (DHCR) performed a compliance monitoring visit in 1999 where they tested the Partnership's compliance with the applicable requirements of Section 42.  The results of the sample of tenants files reviewed indicated that 15 units were potentially not in compliance.  The Operating General Partner prepared responses to DHCR's findings, however, DHCR filed form 8823 (report of noncompliance) with the IRS in 2000.  To date no recapture of credits been taken. The Operating General Partner and the Investment Limited Partner are continuing to work together to bring the files back into compliance, as well as establishing measures to ensure the tenant files are properly documented.  The Investment Limited Partner continues to monitor this situation closely.



Series 18

As of December 31, 2001 and 2000 the average qualified occupancy for the series was 100%.  The series had a total of 34 properties at December 31, 2001, all of which were at 100% qualified occupancy.

For the nine months being reported Series 18 reflects a net loss from Operating Partnerships of $1,725,926.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $200,858.

Series 18 reported an increase in the net loss per BAC for the current nine-month period over the prior year.  The increase is primarily the result of an increase in maintenance costs reported by some of the Operating Partnerships.  The Investment Limited Partner believes that a portion of these costs will be capitalized in the Operating Partnerships' final year-end audited financial statements.  This will bring actual maintenance costs more in line with the prior year.  This is an interim period estimate; it is not necessarily indicative of the final year end results.

Harris Housing Limited Partnership (Harris Music Lofts), located in West  Palm Beach, Florida, operated slightly below break-even for the fourth quarter of 2001 mainly due to high operating expenses.  The property continues to perform necessary maintenance including carpet replacement and roof repairs.  The General Partner continues to share operating costs with an affiliated property in the same neighborhood in an attempt to reduce expenses.  It is anticipated that the project will breakeven in 2002.  Average occupancy for the fourth quarter of 2001 declined to 94% from the third quarter average of 97%.

Marengo Park Apartments, Limited Partnership (Marengo Park) operated 
below breakeven due to the prior year's low occupancy levels.  Occupancy averaged 84% in 2000.  Management has attributed the occupancy problem to the local economy.  Due to historical low occupancy rates, the property suffered from under funded reserves and delinquent real estate taxes.  The Investment General Partner and the Operating General Partner negotiated a workout plan with Rural Development to address these issues.  Now that the workout plan is in place both the real estate taxes and reserves are current.  Additionally, Rural Development approved Special Market Rate rents at the property in an effort to improve occupancy.  Occupancy has improved to 100% as of December 31, 2001 and operations have significantly improved.  The property has been able to meet all required monthly expenses, including taxes and reserve deposits.  They will further benefit by a reduction in their annual tax expense, which is expected to go into effect in 2002.

Parvin's Limited Partnership (Parvin's Branch Townhomes) continues to 
incur operating deficits due to high debt service payments.  The loan has an interest rate of 10.5% and is amortized over 15 years.  The management company and Operating General Partner are in discussions with the existing first mortgage holder regarding restructuring and/or refinancing the existing mortgage, in an effort to reduce the debt service.  The Operating General Partner and the management company have been deferring their respective fees to improve the property's cash flow.  In addition, the Operating General Partner continues to fund deficits.  Of the total 24 units at this property, 23 units were occupied for each of the 12 months in 2001, resulting in an average occupancy of 95.83%.  The mortgage, taxes, insurance and payables are current.

Glen Place Apartments Limited Partnership (Glen Place Apartments) received 60-Day letters issued by the IRS stating that the Operating Partnership had not met certain IRC Section 42 requirements for the tax years 1996 and 1997.  The 60-Day letters, were the result of an IRS audit of the Operating Partnership's tenant files.  As a result of their audit, the IRS has proposed an adjustment that would disallow 59% of past and future tax credits. The adjustment will also include interest and penalties on the past tax credit being disallowed.  The Investment General Partner and its counsel are working with the Operating General Partner and its counsel to negotiate a more favorable settlement.  As a result of the Investment General Partner's expectation that certain past and future credits will be disallowed, the auditor's have included a contingency footnote in the annual financial statement (Note H) which is a part of the most recently filed 10-K dated March 31, 2001.



Chelsea Square Development Limited Partnership (Chelsea Square Apartments) is a six unit property, which incurred negative cash flow during 2000 as a result of low residential rental rates, payment of back taxes and water/sewer and the non payment of commercial rental revenue to the property.  To resolve the negative cash flow, residential and rental rates were increased in June 2001.  Additionally, the Investment General Partner has contacted the Operating General Partner regarding the receipt of commercial rental income.  The Investment General Partner is working to confirm the commercial rental income will be allocated to the operating partnership.  The back property taxes and water and sewer are on an approved payment plan with the municipality and will be brought current by the end of the second quarter of 2003.  The property will not break even in 2001, however, application of current and past due commercial rental revenue, coupled with the rental rate increase should allow the property to breakeven in 2002.  The mortgage and property insurance are current.



Series 19

As of December 31, 2001 and 2000 the average qualified occupancy 
for the series was 100%.  The series had a total of 26 properties at December 31, 2001, all of which were at 100% qualified occupancy.

For the nine months being reported Series 19 reflects a net loss from
Operating Partnerships of $1,205,184.  When adjusted for depreciation, which 
is a non-cash item, the Operating Partnerships reflect positive operations of
$948,371. This is an interim period estimate; it is not necessarily 
indicativeof the final year end results.

Carrollton Villa Limited Partnership (Carrollton Villa Apartments), located in Carrollton, Missouri, operated below breakeven in 2001 as a result of low occupancy.  In anticipation of a changing housing market the property was reconfigured in late 2000 from 1 and 2 bedrooms only to include 3 and 4 bedroom units.  Occupancy averaged 81% during 2001 and was 76% at December 31, 2001.  Management is currently running ads in the local newspaper, and flyers with pull-tabs, have been posted throughout the community and in surrounding areas.  Moreover, the site manager has a very successful relationship with the local housing authority, which should generate tenant referrals.  The property's mortgage, taxes and insurance were all current as of December 31, 2001.





PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

None

Item 2.  Changes in Securities

None

Item 3.  Defaults upon Senior Securities

None

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

None

Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

(a)  Exhibits

None

(b)  Reports on Form 8-K















SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange
Act of 1934, the Fund has duly caused this Report to be signed on its behalf
by the undersigned, thereunto duly authorized.

|                  | Boston Capital Tax Credit Fund III L.P.
|----------------- | ---------------------------------------
|                  |                                        
|                  | By:                                    
|                  |                                        
|                  |                                        
|                  | By:                                    
|                  |                                        
|                  |                                        
|                  | By:                                    
|                  |                                        
|Date:             |                                        
|                  |                                        
|February 20, 2002 | By:                                    
|                  |                                        
|                  |                                        





Pursuant to the requirements of the Securities Exchange Act of 1934, this 
report has been signed below by the following persons on behalf of the Fund 
and in the capacities and on the dates indicated:

|DATE:             | SIGNATURE:          | TITLE:                 
|----------------- | ------------------- | -----------------------
|                  |                     |                        
|February 20, 2002 | /s/ John P. Manning | Director, President    
|                  |                     | (Principal Executive   
|                  | John P. Manning     | Officer) C&M Management
|                  |                     | Inc.; Director,        
|                  |                     | President (Principal   
|                  |                     | Executive Officer)     
|                  |                     | BCTC III Assignor Corp.