----

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-K**

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

**March      30, 2008**

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

| **0-19217**                               |
|-------------------------------------------|
| (Commission                  File Number) |

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

| **Delaware**                                                                                                                             |   | **13-3545006**                                             |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|
| (State                or other jurisdiction of organization)                                                                             |   | (I.R.S.                Employer Identification No.)        |
|                                                                                                                                     |   |                                                       |
| **Richman                Tax Credit Properties III L.P.****340                Pemberwick Road****Greenwich,                Connecticut** |   | **06831**                                                  |
| (Address                of principal executive offices)                                                                                  |   | (Zip                Code)                                  |
|                                                                                                                                     |   |                                                       |
| Registrant's                telephone number, including area code:                                                                       |   | **(203)                869-0900**                          |
|                                                                                                                                     |   |                                                       |
| Securities                registered pursuant to Section 12(b) of the Act:                                                               |   |                                                       |
|                                                                                                                                     |   |                                                       |
| **None**                                                                                                                                 |   | **None**                                                   |
| (Title                of each Class)                                                                                                     |   | (Name                of each exchange on which registered) |
|                                                                                                                                     |   |                                                       |
| Securities                registered pursuant to Section 12(g) of the Act:                                                               |   |                                                       |
|                                                                                                                                     |   |                                                       |
| **Units                of Limited Partnership Interest**                                                                                 |
| (Title                of Class)                                                                                                          |

----

----

**PART      I**

| **Item                1.** | **Business** |
|----------------------------|--------------|

----

**Item      1A. **
**Risk      Factors**

***Properties      owned by the Local Partnerships are subject to certain risks relating to the      real estate industry in general that are outside of the control of the Local      Partnerships or Registrant and that may have an adverse affect on Registrant’s      investment in such Local Partnerships.***

***The      modification or elimination of government rental subsidies on which the Local      Partnerships rely would require the Local Partnerships to use existing funds      or      obtain additional funds to continue to operate the respective Properties.      Because Registrant’s investments in the Local Partnerships are highly leveraged,      it would be highly difficult to obtain such additional      funds.***

----

**Item      1A. **
**Risk      Factors (continued)**

***There      is no guarantee that it will be possible to sell the Properties or, if possible,      that Registrant would receive any proceeds from any such      sale.***

***The      Local Partnerships may be required to continue to maintain the low-income nature      of the Properties beyond the Compliance Period under agreements with state      tax      credit agencies.***

***Limited      partners may not be able to use all of the carried forward Low-income Tax      Credits.***

***There      is no existing market for the Units.***

***Under      certain circumstances, limited partners of Registrant may incur out-of-pocket      tax costs.***

***Limited      partners of Registrant may not receive a return of any portion of their original      capital investment in Registrant.***

----

**Item      1B. **
**Unresolved      Staff Comments**

**Item      2.**
**Properties**

|                                                                                                                         |   | Registrant |                               | ATCP                II |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|------------|------------------------------------|------------------------|--------|
|                                                                                                                         |   |       |                               |                   |   |
| Batesville                Family, L.P.                                                                                       |   |       |                   61.75% |                   |   |    37.25% |   |
| Bruce                Housing Associates, L.P.                                                                                |   |       | 61.75                              |                   |   | 37.25 |   |
| Carrington                Limited Dividend Housing Association                Limited Partnership (“Carrington”) |   |       | 65.95                              |                   |   | 33.05 |   |
| Ivy                Family, L.P.                                                                                              |   |       | 61.75                              |                   |   | 37.25 |   |
| Lawrence                Road Properties, Ltd.                                                                                |   |       | 61.75                              |                   |   | 37.25 |   |
| Mirador                del Toa Limited Partnership                                                                           |   |       | 59.06                              |                   |   | 39.94 |   |
| Purvis                Heights Properties, L.P.                                                                               |   |       | 61.75                              |                   |   | 37.25 |   |
| Queen                Lane Investors                                                                                          |   |       | 48.50                              |                   |   | 50.50 |   |

----

**Item      2.**
**Properties      (continued)**

|                                                                                                                                                                                                      |   |           |   |         |   | Mortgage                           |   |       |      |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------------|--------|------------------------------------|--------|------------|-----------|
| Name                  of Local Partnership                                                                                                                                                                |   | Number of |   |         |   | loans payable as of |   | Subsidy    |      |
| Name of apartment complex                                                                                                                                                                  |   | rental         |   | Capital      |   | December 31,                  |   | (see       |      |
| Apartment                  complex location                                                                                                                                                               |   | units          |   | contribution |   | 2007                               |   | footnotes) |      |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| April                  Gardens Apartments IILimited                  PartnershipApril                  Gardens ApartmentsLas                  Piedras, Puerto Rico                                        |   |           | 48     |         | $      | 485,581                            |   | $          | 1,940,817 |   |   | (1b&c | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Ashland                  Park Apartments, L.P.Ashland                  Park ApartmentsAshland,                  Nebraska                                                                                  |   |           | 24     |         |   | 235,732                            |   |       | 1,007,252 |   |   | (1b&c | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Auburn                  Family, L.P.Auburn                  ApartmentsLouisville,                  Mississippi                                                                                            |   |           | 16     |         |   | 95,412                             |   |       | 444,579   |   |   | (1b&c | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Batesville                  Family, L.P.Westridge                  ApartmentsBatesville,                  Mississippi                                                                                     |   |           | 48     |         |   | 239,716                            | (2)    |       | 1,402,915 |   |   | (1b | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Bay                  Springs Elderly, L.P.Bay                  Springs ManorBay                  Springs, Mississippi                                                                                     |   |           | 24     |         |   | 208,820                            |   |       | 657,811   |   |   | (1b&c | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Brisas                  del Mar ApartmentsLimited                  PartnershipBrisas                  del Mar ApartmentsHatillo,                  Puerto Rico                                             |   |           | 66     |         |   | 668,172                            |   |       | 2,571,899 |   |   | (1b&c | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Bruce                  Housing Associates, L.P.Bruce                  Family ApartmentsBruce,                  Mississippi                                                                                |   |           | 40     |         |   | 183,155                            | (2)    |       | 1,071,790 |   |   | (1b&c | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Carrington                  Limited DividendHousing                  Association LimitedPartnership                  (3), (4)Carrington                  PlaceFarmington                  Hills, Michigan |   |           | 100    |         |   | 2,174,720                          | (2)    |       | —   | (3) |   |   |   |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Chestnut                  Park Associates, L.P.Chestnut                  Park ApartmentsEast                  Orange, New Jersey                                                                          |   |           | 59     |         |   | 4,204,576                          |   |       | 4,461,175 |   |   | (1a&g | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Chowan                  Senior Manor AssociatesLimited                  PartnershipAzalea                  Garden Senior ManorApartmentsMurfreesboro,                  North Carolina                     |   |           | 33     |         |   | 278,405                            |   |       | 1,203,845 |   |   | (1b&c | ) |
|                                                                                                                                                                                                      |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Christian                  Street CommonsAssociatesChristian                  Street CommonsApartmentsPhiladelphia,                  Pennsylvania                                                         |   |           | 18     |         |   | 581,645                            |   |       | 536,317   |   |   | (1b | ) |

----

**Item      2.**
**Properties      (continued)**

|                                                                                                                                                     |   |           |   |         |   | Mortgage                           |   |       |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------------|--------|------------------------------------|--------|------------|-----------|
| Name                  of Local Partnership                                                                                                               |   | Number of |   |         |   | loans payable as of |   | Subsidy    |      |
| Name                  of apartment complex                                                                                                               |   | rental         |   | Capital      |   | December 31,                  |   | (see       |      |
| Apartment                  complex location                                                                                                              |   | units          |   | contribution |   | 2007                               |   | footnotes) |      |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Country                  View ApartmentsCountry                  View ApartmentsPembroke,                  Maine                                         |   |           | 16     |         | $      | 279,183                            |   | $          | 910,551   |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Desarrollos                  de Belen LimitedPartnershipVista                  de Jagueyes II ApartmentsAguas                  Buenas, Puerto Rico       |   |           | 41     |         |   | 422,929                            |   |       | 1,827,079 |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Desarrollos                  de Emaus LimitedPartnershipHucares                  II ApartmentsNaguabo,                  Puerto Rico                      |   |           | 72     |         |   | 631,404                            |   |       | 3,105,194 |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Ellinwood                  Heights Apartments, L.P.Ellinwood                  Heights ApartmentsEllinwood,                  Kansas                       |   |           | 24     |         |   | 156,261                            |   |       | 668,470   |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Fulton                  Street Houses LimitedPartnershipFulton                  Street TownhouseApartmentsNew                  York, New York            |   |           | 35     |         |   | 1,948,081                          |   |       | 3,869,930 |   |   | (1b | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Hayes                  Run Limited PartnershipMashburn                  Gap ApartmentsMarshall,                  North Carolina                          |   |           | 34     |         |   | 322,074                            |   |       | 1,385,839 |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Howard                  L. Miller SallisawApartments                  II, L.P.Sallisaw                  II ApartmentsSallisaw,                  Oklahoma |   |           | 24     |         |   | 130,158                            |   |       | 599,282   |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Hurlock                  Meadow LimitedPartnershipHurlock                  Meadow ApartmentsHurlock,                  Maryland                           |   |           | 30     |         |   | 284,218                            |   |       | 1,232,292 |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Ivy                  Family, L.P.Ivy                  ApartmentsLouisville,                  Mississippi                                                 |   |           | 32     |         |   | 135,528                  (2        | )      |       | 742,126   |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Justin                  AssociatesLocust                  Tower ApartmentsPhiladelphia,                  Pennsylvania                                    |   |           | 40     |         |   | 1,809,723                          |   |       | 2,098,457 |   |   | (1a,b&g | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| LaBelle                  Commons, Ltd.LaBelle                  CommonsLaBelle,                  Florida                                                  |   |           | 32     |         |   | 253,580                            |   |       | 983,627   |   |   | (1b&c | ) |
|                                                                                                                                                     |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Lawrence                  Road Properties, Ltd.Hillcrest                  ApartmentsNewton,                  Mississippi                                 |   |           | 24     |         |   | 123,799                  (2        | )      |       | 737,825   |   |   | (1b&c | ) |

----

**Item      2.**
**Properties      (continued)**

|                                                                                                                                                                          |   |           |   |         |   | Mortgage                           |   |       |      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------------|--------|------------------------------------|--------|------------|-----------|
| Name                  of Local Partnership                                                                                                                                    |   | Number of |   |         |   | loans payable as of |   | Subsidy    |      |
| Name                  of apartment complex                                                                                                                                    |   | rental         |   | Capital      |   | December                  31,      |   | (see       |      |
| Apartment                  complex location                                                                                                                                   |   | units          |   | contribution |   | 2007                               |   | footnotes) |      |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Loma                  Del Norte LimitedPartnershipLoma                  Del Norte ApartmentsAnthony,                  New Mexico                                              |   |           | 40     |         | $      | 314,865                            |   | $          | 1,398,854 |   |   | (1b&c | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Long                  Reach Associates LimitedPartnershipOak                  Ridge ApartmentsBath,                  Maine                                                    |   |           | 30     |         |   | 448,922                            |   |       | 1,438,440 |   |   | (1b&c | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Mirador                  del Toa LimitedPartnership                  Mirador                  del Toa ApartmentsToa                  Alta, Puerto Rico                        |   |           | 48     |         |   | 284,847                  (2        | )      |       | 1,822,423 |   |   | (1b&c | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Moore                  Haven Commons, Ltd.Moore                  Haven CommonsMoore                  Haven, Florida                                                           |   |           | 28     |         |   | 213,402                            |   |       | 901,752   |   |   | (1b&c | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| NP-89                  Limited Dividend HousingAssociation                  Limited PartnershipNewport                  ApartmentsClinton                  Township, Michigan |   |           | 168    |         |   | 2,372,292                          |   |       | 3,096,140 |   |   | (1a,b&g | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Nash                  Hill Associates, LimitedPartnershipNash                  Hill PlaceWilliamsburg,                  Massachusetts                                         |   |           | 28     |         |   | 302,575                            |   |       | 1,427,370 |   |   | (1b,c&e | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| North                  Calhoun City, L.P.North                  Calhoun City ApartmentsCalhoun                  City, Mississippi                                             |   |           | 18     |         |   | 146,565                            |   |       | 455,102   |   |   | (1b&c | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Orange                  City Plaza, LimitedPartnership                  (5)Orange                  City Plaza ApartmentsOrange                  City, Iowa                    |   |           | 32     |         |   | 576,472                            |   |       | 382,467   |   |   | (1f | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Puerta                  del Mar Limited PartnershipPuerta                  del Mar ApartmentsHatillo,                  Puerto Rico                                            |   |           | 66     |         |   | 630,570                            |   |       | 2,447,306 |   |   | (1b&c | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Purvis                  Heights Properties, L.P.Pineview                  ApartmentsPurvis,                  Mississippi                                                      |   |           | 40     |         |   | 191,512                  (2        | )      |       | 1,116,418 |   |   | (1b | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Queen                  Lane InvestorsQueen's                  RowPhiladelphia,                  Pennsylvania                                                                  |   |           | 29     |         |   | 597,050                  (2        | )      |       | 1,647,041 |   |   | (1b | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Somerset                  Manor, Ltd.Somerset                  ManorCentral                  City, Pennsylvania                                                               |   |           | 24     |         |   | 208,465                            |   |       | 873,408   |   |   | (1b&c | ) |
|                                                                                                                                                                          |   |           |   |         |   |                               |   |       |      |   |   |   |   |
| Sugar                  Cane Villas, Ltd.Sugar                  Cane VillasPahokee,                  Florida                                                                   |   |           | 87     |         |   | 751,560                            |   |       | 3,217,284 |   |   | (1b&c | ) |

----

| **Item              2.** | **Properties                (continued)** |
|--------------------------|-------------------------------------------|

|                                                                                                                                                                   |   |           |   |         |   | Mortgage                           |   |       |       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------------|--------|------------------------------------|--------|------------|------------|
| Name of Local Partnership                                                                                                                               |   | Number         |   |         |   | loans payable as of |   | Subsidy    |       |
| Name of apartment complex                                                                                                                               |   | of rental |   | Capital      |   | December 31,                  |   | (see       |       |
| Apartment complex location                                                                                                                                   |   | units          |   | contribution |   | 2007                               |   | footnotes) |       |
|                                                                                                                                                                   |   |           |   |         |   |                               |   |       |       |
| Summerfield                  Apartments LimitedPartnershipSummerfield                  ApartmentsCharlotte,                  North Carolina                            |   |           | 52     |         | $      | 1,088,667                          |   | $          | 1,488,833  |   |   | (1b | ) |
|                                                                                                                                                                   |   |           |   |         |   |                               |   |       |       |   |   |   |   |
| Sydney                  Engel Associates L.P.(formerly                  known as Sydney EngelAssociates)The                  CastleNew                  York, New York |   |           | 224    |         |   | 3,201,874                          |   |       | 15,460,803 |   |   | (1b | ) |
|                                                                                                                                                                   |   |           |   |         |   |                               |   |       |       |   |   |   |   |
| Union                  Valley Associates LimitedPartnershipUnion                  Valley ApartmentsUnion                  Township, Pennsylvania                       |   |           | 36     |         |   | 371,589                            |   |       | 1,407,722  |   |   | (1b | ) |
|                                                                                                                                                                   |   |           |   |         |   |                               |   |       |       |   |   |   |   |
| Walnut                  Grove Family, L.P.Walnut                  Grove ApartmentsWalnut                  Grove, Mississippi                                           |   |           | 24     |         |   | 191,695                            |   |       | 825,870    |   |   | (1b&c | ) |
|                                                                                                                                                                   |   |           |   |         |   |                               |   |       |       |   |   |   |   |
| Waynesboro                  Apartments LimitedPartnershipWaynesboro                  ApartmentsWaynesboro,                  Pennsylvania                               |   |           | 36     |         |   | 360,859                            |   |       | 1,439,826  |   |   | (1b | ) |
|                                                                                                                                                                   |   |           |   |         |   |                               |   |       |       |   |   |   |   |
| West                  Calhoun City, L.P.West                  Calhoun City ApartmentsCalhoun                  City, Mississippi                                        |   |           | 28     |         |   | 230,212                            |   |       | 688,096    |   |   | (1b&c | ) |
|                                                                                                                                                                   |   |           |   |         |   |                               |   |       |       |   |   |   |   |
| Westminster                  Apartments LimitedPartnershipWestminster                  ApartmentsPhiladelphia,                  Pennsylvania                           |   |           | 42     |         |   | 1,047,993                          |   |       | 1,607,972  |   |   | (1b&d | ) |
|                                                                                                                                                                   |   |           |   |         | $      | 29,384,966                         |   | $          | 76,602,199 |   |   |   |   |

|   | (1) | Description                of subsidies: |
|--------|-----|------------------------------------------|

|  | (a) | Section                8 of Title II of the Housing and Community Development Act of 1974                allows                qualified low-income tenants to pay thirty percent of their monthly                income                as rent with the balance paid by the federal                government. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (b) | The                Local Partnership’s debt structure includes a principal or interest                payment subsidy. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------|

|  | (c) | The                Rural Housing Service (formerly the Farmers Home Administration)                of the                United States Department of Agriculture Rental Assistance Program                allows                qualified low-income tenants to receive rental subsidies. |
|--|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | The                City of Philadelphia Housing Authority allows qualified low-income                tenants                to receive rental certificates. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | The                Commonwealth of Massachusetts participates in a rental assistance                program. |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|  | (f) | The                Northwest Regional Housing Authority provides qualified tenants with                a                rental subsidy. |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|  | (g) | The                Local Partnerships’ Section 8 contracts are currently subject to renewal                under applicable HUD guidelines. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **Item              2.** | **Properties                (continued)** |
|--------------------------|-------------------------------------------|

|   | (2) | Reflects                amount attributable to Registrant                only. |
|--------|-----|--------------------------------------------------------------------------------|

|  | (3) | The                Local Partnership Interest is no longer owned by Registrant; there                are no                assets or liabilities related to the Local Partnership included in                the                combined balance sheet of the Local Partnerships as of December 31,                2007                in Note 5 to the financial                statements. |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Registrant                assigned its limited partner interest to one of the Local General                Partners                in February 2007. The combined statement of operations of the Local                Partnerships for the year ended December 31, 2007 included in Note                5 to                the accompanying financial statements does not include any results                of                operations for the Local Partnership (see Part II, Item 7 - Management’s                Discussion and Analysis of Financial Condition and Results of Operations,                herein). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Capital                contribution includes voluntary advances to Local                Partnership. |
|--------|-----|-----------------------------------------------------------------------------------------------------------|

| **Item                3.** | **Legal                Proceedings** |
|----------------------------|--------------------------------------|

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

----

**PART      II**

| **Item                5.** | **Market                for Registrant's Common Equity, Related Stockholder Matters and Issuer                Purchases of Equity                Securities** |
|----------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **Item              6.** | **Selected                Financial Data** |
|--------------------------|--------------------------------------------|

|                                                                                                     |   | Years Ended March 30, |     |
|----------------------------------------------------------------------------------------------------------|--------|--------------------------------------|----------|
|                                                                                                     |   | 2008                                 |     | 2007 |   | 2006 |   | 2005 |   | 2004 |   |
|                                                                                                     |   |                                 |     |   |   |   |   |   |   |   |   |
| Interest                and other revenue                                                                |   | $                                    | 82,821   |   | $ | 95,084 |   | $ | 142,837 |   | $ | 176,110 |   | $ | 193,706 |   |
|                                                                                                     |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity                in loss of investment in local partnerships                                        |   | $                                    | (67,384  | ) | $ | (97,326 | ) | $ | (162,367 | ) | $ | (247,207 | ) | $ | (215,731 | ) |
|                                                                                                     |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gain                on disposal of limited partner interests/local partnership                properties |   | $                                    | —  |   | $ | 149,895 |   | $ | — |   | $ | — |   | $ | — |   |
|                                                                                                     |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss                                                                                  |   | $                                    | (551,682 | ) | $ | (431,945 | ) | $ | (620,078 | ) | $ | (640,259 | ) | $ | (611,662 | ) |
|                                                                                                     |   |                                 |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                loss per unit of limited partnership interest                                         |   | $                                    | —  |   | $ | — |   | $ | (11.44 | ) | $ | (17.66 | ) | $ | (16.88 | ) |

|                        |   | As of March 30, |      |
|-----------------------------|--------|--------------------------------|-----------|
|                        |   | 2008                           |      | 2007 |   | 2006 |   | 2005 |   | 2004 |   |
|                        |   |                           |      |   |   |   |   |   |   |   |   |
| Total                assets |   | $                              | 1,755,863 |   | $ | 1,967,060 |   | $ | 2,109,756 |   | $ | 2,747,749 |   | $ | 3,766,895 |   |

| **Item              7.** | **Management's                Discussion and Analysis of Financial Condition and Results of                Operations** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------|

----

| **Item              7.** | **Management's                Discussion and Analysis of Financial Condition and Results of Operations                (continued)** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------|

----

| **Item                7.** | **Management's                  Discussion and Analysis of Financial Condition and Results of Operations                  (continued)** |
|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

----

| **Item              7.** | **Management's                Discussion and Analysis of Financial Condition and Results of Operations                (continued)** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------|

|                                                         |   | Total  |      | < 1 year |   | 1 - 3 years |   | 3 - 5 years |      | > 5 years |   |
|--------------------------------------------------------------|--------|--------|-----------|-----------------------|--------|----------------------------|--------|----------------------------|-----------|------------------------|--------|
|                                                         |   |   |      |                  |   |                       |   |                       |      |                   |   |
| Other                Long Term Liabilities:                  |   |   |      |                  |   |                       |   |                       |      |                   |   |
| Accounts                Payable and Accrued Expenses (1)     |   | $      | 440,673   |                  | $      | —                    |   | $                          | 440,673   |                   | $      | — |   | $ | — |   |
|                                                         |   |   |      |                  |   |                       |   |                       |      |                   |   |   |   |   |   |   |
| Payable                to General Partner and Affiliates (2) |   |   | 2,721,295 |                  |   | —                    |   |                       | 2,721,295 |                   |   | — |   |   | — |   |
|                                                         |   |   |      |                  |   |                       |   |                       |      |                   |   |   |   |   |   |   |
|                                                         |   | $      | 3,161,968 |                  | $      | —                    |   | $                          | 3,161,968 |                   | $      | — |   | $ | — |   |

| (1) | Represents                Administration Fees payable to a third-party former service provider;                such                amount is payable from available reserves or sale or refinancing                proceeds                from the Local Partnerships to the extent such amounts are                available. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents                Administration and Management Fees payable to an affiliate of the                General                Partner; such amount is payable from available reserves or sale or                refinancing proceeds from the Local Partnerships to the extent such                amounts are available. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| **Item              7.** | **Management's                Discussion and Analysis of Financial Condition and Results of Operations                (continued)** |
|--------------------------|-------------------------------------------------------------------------------------------------------------------------------------|

----

| **Item                7.** | **Management's                  Discussion and Analysis of Financial Condition and Results of Operations                  (continued)** |
|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

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

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

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

| **Item              7a.** | **Quantitative                and Qualitative Disclosure About Market                Risk** |
|---------------------------|---------------------------------------------------------------------------------------------|

----

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

**Item          8.  **
**Financial          Statements and Supplementary Data **

**Table      of Contents**

|                                                                   |   | **Page** |
|------------------------------------------------------------------------|--------|----------|
|                                                                   |   |     |
| Report                of Independent Registered Public Accounting Firm |   | 19       |
|                                                                   |   |     |
| Balance                Sheets                                          |   | 20       |
|                                                                   |   |     |
| Statements                of Operations                                |   | 21       |
|                                                                   |   |     |
| Statements                of Changes in Partners' Equity (Deficit)     |   | 22       |
|                                                                   |   |     |
| Statements                of Cash Flows                                |   | 23       |
|                                                                   |   |     |
| Notes                to Financial Statements                           |   | 25       |

----

----

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

**BALANCE      SHEETS**

**MARCH      30, 2008 AND 2007**

|                                                                                                      |   | **Notes** |   | **2008** |   | **2007**   |   |
|-----------------------------------------------------------------------------------------------------------|--------|-----------|--------|----------|--------|------------|--------|
|                                                                                                      |   |      |   |     |   |       |   |
| **ASSETS**                                                                                                |   |      |   |     |   |       |   |
|                                                                                                      |   |      |   |     |   |       |   |
| Cash                and cash equivalents                                                                  |   |      | 3,9    |     | $      | 380,660    |   | $ | 164,013 |   |
| Investments                in bonds                                                                       |   |      | 4,9    |     |   | 870,596    |   |   | 1,226,235 |   |
| Investment                in local partnerships                                                           |   |      | 5,8    |     |   | 504,607    |   |   | 576,812 |   |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
|                                                                                                      |   |      |   |     | $      | 1,755,863  |   | $ | 1,967,060 |   |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
| **LIABILITIES                AND PARTNERS' EQUITY (DEFICIT)**                                             |   |      |   |     |   |       |   |   |   |   |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
| Liabilities                                                                                               |   |      |   |     |   |       |   |   |   |   |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
| Accounts                payable and accrued expenses                                                      |   |      | 8      |     | $      | 538,625    |   | $ | 530,807 |   |
| Payable                to general partner and affiliates                                                  |   |      | 6,8    |     |   | 2,721,295  |   |   | 2,393,732 |   |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
|                                                                                                      |   |      |   |     |   | 3,259,920  |   |   | 2,924,539 |   |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
| Commitments                and contingencies                                                              |   |      | 5,8    |     |   |       |   |   |   |   |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
| Partners'                equity (deficit)                                                                 |   |      | 2,4    |     |   |       |   |   |   |   |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
| General                partner                                                                            |   |      |   |     |   | (1,507,483 | )      |   | (955,801 | ) |
| Limited                partners (35,883 units of limited partnership interest                outstanding) |   |      |   |     |   |       |   |   |   |   |
| Accumulated                other comprehensive income (loss), net                                         |   |      |   |     |   | 3,426      |   |   | (1,678 | ) |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
|                                                                                                      |   |      |   |     |   | (1,504,057 | )      |   | (957,479 | ) |
|                                                                                                      |   |      |   |     |   |       |   |   |   |   |
|                                                                                                      |   |      |   |     | $      | 1,755,863  |   | $ | 1,967,060 |   |

----

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

**STATEMENTS      OF OPERATIONS**

**YEARS      ENDED MARCH 30, 2008, 2007 AND 2006**

|                                                                                                                                             |   | **Notes** |   | **2008** |   | **2007** |   | **2006** |     |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|----------|--------|----------|--------|----------|----------|
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |
| **REVENUE**                                                                                                                                      |   |      |   |     |   |     |   |     |     |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |
| Interest                                                                                                                                         |   |      |   |     | $      | 56,703   |   | $        | 72,044   |   | $ | 97,334 |   |
| Other                income from local partnerships                                                                                              |   |      |   |     |   | 26,118   |   |     | 23,040   |   |   | 45,503 |   |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| TOTAL                REVENUE                                                                                                                     |   |      |   |     |   | 82,821   |   |     | 95,084   |   |   | 142,837 |   |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| **EXPENSES**                                                                                                                                     |   |      |   |     |   |     |   |     |     |   |   |   |   |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| Administration                fees - affiliate                                                                                                   |   |      | 6,8    |     |   | 221,540  |   |     | 228,313  |   |   | 230,571 |   |
| Management                fees - affiliate                                                                                                       |   |      | 6,8    |     |   | 221,540  |   |     | 228,313  |   |   | 230,571 |   |
| Professional                fees                                                                                                                 |   |      |   |     |   | 80,084   |   |     | 68,965   |   |   | 78,597 |   |
| State                of New Jersey filing fees                                                                                                   |   |      |   |     |   | 21,412   |   |     | 25,667   |   |   | 34,337 |   |
| Printing,                postage and other                                                                                                       |   |      |   |     |   | 22,543   |   |     | 28,340   |   |   | 26,472 |   |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| TOTAL                EXPENSES                                                                                                                    |   |      |   |     |   | 567,119  |   |     | 579,598  |   |   | 600,548 |   |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
|                                                                                                                                             |   |      |   |     |   | (484,298 | )      |     | (484,514 | ) |   | (457,711 | ) |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| Equity                in loss of investment in local partnerships                                                                                |   |      | 5      |     |   | (67,384  | )      |     | (97,326  | ) |   | (162,367 | ) |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| Loss                prior to gain on disposal of limited partner interests/local partnership                properties                           |   |      |   |     |   | (551,682 | )      |     | (581,840 | ) |   | (620,078 | ) |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| Gain                on disposal of limited partner interests/local partnership                properties                                         |   |      | 5      |     |   |     |   |     | 149,895  |   |   |   |   |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| **NET                LOSS**                                                                                                                      |   |      |   |     |   | (551,682 | )      |     | (431,945 | ) |   | (620,078 | ) |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| Other                comprehensive income (loss), net                                                                                            |   |      | 4      |     |   | 5,104    |   |     | (5,270   | ) |   | (51,901 | ) |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| **COMPREHENSIVE                LOSS**                                                                                                            |   |      |   |     | $      | (546,578 | )      | $        | (437,215 | ) | $ | (671,979 | ) |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| **NET                LOSS ATTRIBUTABLE TO**                                                                                                      |   |      | 2      |     |   |     |   |     |     |   |   |   |   |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| General                partner                                                                                                                   |   |      |   |     | $      | (551,682 | )      | $        | (431,945 | ) | $ | (209,521 | ) |
| Limited                partners                                                                                                                  |   |      |   |     |   |     |   |     |     |   |   | (410,557 | ) |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
|                                                                                                                                             |   |      |   |     | $      | (551,682 | )      | $        | (431,945 | ) | $ | (620,078 | ) |
|                                                                                                                                             |   |      |   |     |   |     |   |     |     |   |   |   |   |
| **NET                LOSS**per                unit of limited partnership interest (35,883 units of limited partnership                interest) |   |      |   |     | $      | —  |   | $        | —  |   | $ | (11.44 | ) |

----

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

**STATEMENTS      OF CHANGES IN PARTNERS' EQUITY (DEFICIT)**

**YEARS      ENDED MARCH 30, 2008, 2007 AND 2006**

|                                                      |   | **General** |       | **Limited**  |   | **Accumulated Other****Comprehensive** |    |      |    |
|-----------------------------------------------------------|--------|-------------|------------|--------------|--------|---------------------------------------------|---------|-----------|---------|
|                                                      |   | **Partner** |       | **Partners** |   | **Income (Loss), Net**            |    | **Total** |    |
|                                                      |   |        |       |         |   |                                        |    |      |    |
| Partners'                equity (deficit), March 30, 2005 |   | $           | (314,335   | )       | $      | 410,557                                     |    | $         | 55,493  |   | $ | 151,715 |   |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Net                loss                                   |   |        | (209,521   | )            |   | (410,557                                    | )  |      |    |   |   | (620,078 | ) |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Other                comprehensive loss, net              |   |        |       |         |   |                                        |    |      | (51,901 | )  |   | (51,901 | ) |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Partners'                equity (deficit), March 30, 2006 |   |        | (523,856   | )            |   | —                                     |    |      | 3,592   |   |   | (520,264 | ) |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Net                loss                                   |   |        | (431,945   | )            |   |                                        |    |      |    |   |   | (431,945 | ) |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Other                comprehensive loss, net              |   |        |       |         |   |                                        |    |      | (5,270  | ) | (5,270) |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Partners'                deficit, March 30, 2007          |   |        | (955,801   | )            |   | —                                     |    |      | (1,678  | ) | (957,479) |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Net                loss                                   |   |        | (551,682   | )            |   |                                        |    |      |    |   |   | (551,682 | ) |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Other                comprehensive income, net            |   |        |       |         |   |                                        |    |      | 5,104   |   |   | 5,104 |   |
|                                                      |   |        |       |         |   |                                        |    |      |    |   |   |   |   |
| Partners'                equity (deficit), March 30, 2008 |   | $           | (1,507,483 | )            | $      | —                                     |    | $         | 3,426   |   | $ | (1,504,057 | ) |

----

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

**STATEMENTS      OF CASH FLOWS**

**YEARS      ENDED MARCH 30, 2008, 2007 AND 2006**

|                                                                                                                         |   | **2008** |     | **2007** |   | **2006** |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------|----------|----------|--------|----------|--------|
|                                                                                                                         |   |     |     |     |   |     |   |
| **CASH                FLOWS FROM OPERATING ACTIVITIES**                                                                      |   |     |     |     |   |     |   |
|                                                                                                                         |   |     |     |     |   |     |   |
| Interest                received                                                                                             |   | $        | 8,385    |     | $      | 14,109   |   | $ | 18,179 |   |
| Cash                paid for                                                                                                 |   |     |     |     |   |     |   |   |   |   |
| administration                fees                                                                                           |   |     | (15,517  | )        |   | (15,553  | )      |   | (248,578 | ) |
| management                fees                                                                                               |   |     | (100,000 | )        |   | (159,334 | )      |   | (190,479 | ) |
| professional                fees                                                                                             |   |     | (89,880  | )        |   | (51,852  | )      |   | (75,873 | ) |
| State                of New Jersey filing fees                                                                               |   |     | (22,369  | )        |   | (30,000  | )      |   | (27,171 | ) |
| printing,                postage and other expenses                                                                          |   |     | (3,972   | )        |   | (28,340  | )      |   | (24,461 | ) |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| Net                cash used in operating activities                                                                         |   |     | (223,353 | )        |   | (270,970 | )      |   | (548,383 | ) |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES**                                                                      |   |     |     |     |   |     |   |   |   |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| Proceeds                in connection with disposal of limited partner interests/local partnership                properties |   |     |     |     |   | 149,895  |   |   |   |   |
| Voluntary                advances to local partnerships                                                                      |   |     | (15,179  | )        |   | (105,311 | )      |   |   |   |
| Cash                distributions from local partnerships                                                                    |   |     | 46,118   |     |   | 33,040   |   |   | 55,984 |   |
| Maturities/redemptions                and sales of bonds                                                                     |   |     | 409,061  |     |   | 205,989  |   |   | 585,768 |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| Net                cash provided by investing activities                                                                     |   |     | 440,000  |     |   | 283,613  |   |   | 641,752 |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| Net                increase in cash and cash equivalents                                                                     |   |     | 216,647  |     |   | 12,643   |   |   | 93,369 |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| Cash                and cash equivalents at beginning of year                                                                |   |     | 164,013  |     |   | 151,370  |   |   | 58,001 |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| **CASH                AND CASH EQUIVALENTS AT END OF YEAR**                                                                  |   | $        | 380,660  |     | $      | 164,013  |   | $ | 151,370 |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| **SIGNIFICANT                NON-CASH INVESTING ACTIVITIES**                                                                 |   |     |     |     |   |     |   |   |   |   |
|                                                                                                                         |   |     |     |     |   |     |   |   |   |   |
| Unrealized                gain (loss) on investments in bonds, net                                                           |   | $        | 5,104    |     | $      | (5,270   | )      | $ | (51,901 | ) |

----

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

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

**YEARS      ENDED MARCH 30, 2008, 2007 AND 2006**

|                                                                                                     |   | **2008** |     | **2007** |   | **2006** |   |
|----------------------------------------------------------------------------------------------------------|--------|----------|----------|----------|--------|----------|--------|
|                                                                                                     |   |     |     |     |   |     |   |
| **RECONCILIATION                OF NET LOSS TO NET CASH USED IN OPERATING                ACTIVITIES**    |   |     |     |     |   |     |   |
|                                                                                                     |   |     |     |     |   |     |   |
| Net                loss                                                                                  |   | $        | (551,682 | )        | $      | (431,945 | )      | $ | (620,078 | ) |
|                                                                                                     |   |     |     |     |   |     |   |   |   |   |
| Adjustments                to reconcile net loss to net cash used in operating activities                |   |     |     |     |   |     |   |   |   |   |
|                                                                                                     |   |     |     |     |   |     |   |   |   |   |
| Equity                in loss of investment in local partnerships                                        |   |     | 67,384   |     |   | 97,326   |   |   | 162,367 |   |
| Gain                on disposal of limited partner interests/local partnership                properties |   |     |     |     |   | (149,895 | )      |   |   |   |
| Distributions                from local partnerships classified as other income                          |   |     | (26,118  | )        |   | (23,040  | )      |   | (45,503 | ) |
| Gain                on redemptions and sales of bonds                                                    |   |     |     |     |   | (4,447   | )      |   |   |   |
| Amortization                of net premium on investments in bonds                                       |   |     |     |     |   | 927      |   |   | 1,423 |   |
| Accretion                of zero coupon bonds                                                            |   |     | (48,318  | )        |   | (56,059  | )      |   | (80,533 | ) |
| Decrease                (increase) in interest receivable                                                |   |     |     |     |   | 1,644    |   |   | (45 | ) |
| Increase                in payable to general partner and affiliates                                     |   |     | 327,563  |     |   | 281,739  |   |   | 138,085 |   |
| Increase                (decrease) in accounts payable and accrued expenses                              |   |     | 7,818    |     |   | 12,780   |   |   | (104,099 | ) |
|                                                                                                     |   |     |     |     |   |     |   |   |   |   |
| **NET                CASH USED IN OPERATING ACTIVITIES**                                                 |   | $        | (223,353 | )        | $      | (270,970 | )      | $ | (548,383 | ) |

----

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

**NOTES      TO FINANCIAL STATEMENTS**

**MARCH      30, 2008, 2007 AND 2006**

| **1.** | **Organization,****Purpose                  and Summary of Significant Accounting                  Policies** |
|--------|---------------------------------------------------------------------------------------------------------------|

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **1.** | **Organization,                Purpose and Summary of Significant Accounting Policies                (continued)** |
|--------|--------------------------------------------------------------------------------------------------------------------|

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **1.** | **Organization,                  Purpose and Summary of Significant Accounting Policies                  (continued)** |
|--------|------------------------------------------------------------------------------------------------------------------------|

| **2.** | **Capital                Contributions** |
|--------|------------------------------------------|

| **3.** | **Cash                and Cash Equivalents** |
|--------|----------------------------------------------|

----

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

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

**MARCH        30, 2008, 2007 AND 2006**

| **4.** | **Investments                in Bonds** |
|--------|-----------------------------------------|

| Description                and maturity      |   | Amortizedcost |    | Grossunrealizedgains |   | Grossunrealizedlosses |   | Estimatedfairvalue |    |
|----------------------------------------------|--------|---------------|---------|----------------------|--------|-----------------------|--------|--------------------|---------|
|                                         |   |          |    |                 |   |                  |   |               |    |
| U.S.                Treasury debt securities |   |          |    |                 |   |                  |   |               |    |   |   |   |   |
| Within                one year               |   | $             | 867,170 |                 | $      | 3,426                 |   | $                  | — |   | $ | 870,596 |   |

| Description                and maturity          |   | Amortizedcost |      | Grossunrealizedgains |   | Grossunrealizedlosses |   | Estimatedfairvalue |   |
|--------------------------------------------------|--------|---------------|-----------|----------------------|--------|-----------------------|--------|--------------------|--------|
|                                             |   |          |      |                 |   |                  |   |               |   |
| U.S.                Treasury debt securities     |   |          |      |                 |   |                  |   |               |   |   |   |   |   |
| Within                one year                   |   | $             | 399,571   |                 | $      | —               |   | $                  | (515   | ) | $ | 399,056 |   |
| After                one year through five years |   |          | 828,342   |                 |   | —               |   |               | (1,163 | ) |   | 827,179 |   |
|                                             |   |          |      |                 |   |                  |   |               |   |   |   |   |   |
|                                             |   | $             | 1,227,913 |                 | $      | —               |   | $                  | (1,678 | ) | $ | 1,226,235 |   |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships** |
|--------|-----------------------------------------------------|

| 1.  |   | April                Gardens Apartments II Limited Partnership;                                          |
|-----|--------|----------------------------------------------------------------------------------------------------------|
| 2.  |   | Ashland                Park Apartments, L.P.;                                                            |
| 3.  |   | Auburn                Family, L.P.;                                                                      |
| 4.  |   | Batesville                Family, L.P.;                                                                  |
| 5.  |   | Bay                Springs Elderly, L.P.;                                                                |
| 6.  |   | Brisas                del Mar Apartments Limited Partnership;                                            |
| 7.  |   | Bruce                Housing Associates, L.P.;                                                           |
| 8.  |   | Chestnut                Park Associates, L.P.*;                                                          |
| 9.  |   | Chowan                Senior Manor Associates Limited Partnership;                                       |
| 10. |   | Christian                Street Commons Associates;                                                      |
| 11. |   | Country                View Apartments;                                                                  |
| 12. |   | Desarrollos                de Belen Limited Partnership;                                                 |
| 12. |   | Desarrollos                de Emaus Limited Partnership;                                                 |
| 14. |   | Ellinwood                Heights Apartments, L.P. (“Ellinwood Heights”);                     |
| 15. |   | Fulton                Street Houses Limited Partnership;                                                 |
| 16. |   | Hayes                Run Limited Partnership;                                                            |
| 17. |   | Howard                L. Miller Sallisaw Apartments II, L.P.;                                            |
| 18. |   | Hurlock                Meadow Limited Partnership;                                                       |
| 29. |   | Ivy                Family, L.P.;                                                                         |
| 20. |   | Justin                Associates;                                                                        |
| 21. |   | LaBelle                Commons, Ltd.;                                                                    |
| 22. |   | Lawrence                Road Properties, Ltd.;                                                           |
| 23. |   | Loma                Del Norte Limited Partnership;                                                       |
| 24. |   | Long                Reach Associates Limited Partnership;                                                |
| 25. |   | Mirador                del Toa Limited Partnership;                                                      |
| 26. |   | Moore                Haven Commons, Ltd.;                                                                |
| 27. |   | NP-89                Limited Dividend Housing Association Limited                Partnership;            |
| 28. |   | Nash                Hill Associates, Limited Partnership;                                                |
| 29. |   | North                Calhoun City, L.P.;                                                                 |
| 30. |   | Orange                City Plaza, Limited Partnership (“Orange City”);                       |
| 31. |   | Puerta                del Mar Limited Partnership;                                                       |
| 32. |   | Purvis                Heights Properties, L.P.;                                                          |
| 33. |   | Queen                Lane Investors (“Queen Lane”);                                          |
| 34. |   | Somerset                Manor, Ltd.;                                                                     |
| 35. |   | Sugar                Cane Villas, Ltd.;                                                                  |
| 36. |   | Summerfield                Apartments Limited Partnership;                                               |
| 37. |   | Sydney                Engel Associates L.P. (formerly known as Sydney Engel                Associates)*; |
| 38. |   | Union                Valley Associates Limited Partnership;                                              |
| 39. |   | Walnut                Grove Family, L.P.;                                                                |
| 40. |   | Waynesboro                Apartments Limited Partnership;                                                |
| 41. |   | West                Calhoun City, L.P.; and                                                              |
| 42. |   | Westminster                Apartments Limited Partnership                (“Westminster”).    |

|  | * | An                affiliate of the General Partner is a general partner or special                limited                partner of and/or provides services to the Local                Partnership. |
|--|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships (continued)**  |
|--------|-----------------------------------------------------------------------|

|                                                                                                                         |   | ThePartnership |                     | ATCP II |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------------------------|--------------|--------|
|                                                                                                                         |   |           |                     |         |   |
| Batesville                Family, L.P.                                                                                       |   |           |    61.75% |         |   |    37.25% |   |
| Bruce                Housing Associates, L.P.                                                                                |   |           | 61.75                    |         |   | 37.25 |   |
| Carrington                Limited Dividend Housing Association Limited Partnership                (“Carrington”) |   |           | 65.95                    |         |   | 33.05 |   |
| Ivy                Family, L.P.                                                                                              |   |           | 61.75                    |         |   | 37.25 |   |
| Lawrence                Road Properties, Ltd.                                                                                |   |           | 61.75                    |         |   | 37.25 |   |
| Mirador                del Toa Limited Partnership                                                                           |   |           | 59.06                    |         |   | 39.94 |   |
| Purvis                Heights Properties, L.P.                                                                               |   |           | 61.75                    |         |   | 37.25 |   |
| Queen                Lane Investors                                                                                          |   |           | 48.50                    |         |   | 50.50 |   |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships                (continued)** |
|--------|--------------------------------------------------------------------------------|

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships (continued)** |
|--------|-----------------------------------------------------------------|

|                                                                                                                                     |   | **2007** |        | **2006** |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|-------------|----------|--------|
|                                                                                                                                     |   |     |        |     |   |
| **ASSETS**                                                                                                                               |   |     |        |     |   |   |   |
|                                                                                                                                     |   |     |        |     |   |   |   |
| Cash                and cash equivalents                                                                                                 |   | $        | 1,432,375   |     | $      | 1,575,290 |   |
| Rents                receivable                                                                                                          |   |     | 570,510     |     |   | 464,095 |   |
| Escrow                deposits and reserves                                                                                              |   |     | 4,735,459   |     |   | 5,591,786 |   |
| Land                                                                                                                                     |   |     | 3,710,215   |     |   | 3,910,215 |   |
| Buildings                and improvements (net of accumulated depreciation of $62,997,117                and                $63,114,230) |   |     | 48,507,023  |     |   | 54,101,042 |   |
| Intangible                assets (net of accumulated amortization of $575,345 and                $607,723)                               |   |     | 289,390     |     |   | 415,653 |   |
| Other                assets                                                                                                              |   |     | 1,292,657   |     |   | 1,273,041 |   |
|                                                                                                                                     |   |     |        |     |   |   |   |
|                                                                                                                                     |   | $        | 60,537,629  |     | $      | 67,331,122 |   |
|                                                                                                                                     |   |     |        |     |   |   |   |
| **LIABILITIES                AND PARTNERS' EQUITY (DEFICIT)**                                                                            |   |     |        |     |   |   |   |
|                                                                                                                                     |   |     |        |     |   |   |   |
| Liabilities                                                                                                                              |   |     |        |     |   |   |   |
|                                                                                                                                     |   |     |        |     |   |   |   |
| Accounts                payable and accrued expenses                                                                                     |   | $        | 1,497,839   |     | $      | 2,202,753 |   |
| Due                to related parties                                                                                                    |   |     | 4,792,214   |     |   | 5,284,304 |   |
| Mortgage                loans                                                                                                            |   |     | 76,602,199  |     |   | 80,524,806 |   |
| Accrued                interest                                                                                                          |   |     | 5,833,343   |     |   | 5,428,098 |   |
| Other                liabilities                                                                                                         |   |     | 807,713     |     |   | 818,280 |   |
|                                                                                                                                     |   |     |        |     |   |   |   |
|                                                                                                                                     |   |     | 89,533,308  |     |   | 94,258,241 |   |
| Partners'                equity (deficit)                                                                                                |   |     |        |     |   |   |   |
|                                                                                                                                     |   |     |        |     |   |   |   |
| American                Tax Credit Properties III L.P.                                                                                   |   |     |        |     |   |   |   |
| Capital                contributions, net of distributions                                                                               |   |     | 26,588,807  |     |   | 28,758,986 |   |
| Cumulative                loss                                                                                                           |   |     | (24,774,055 | )        |   | (26,881,391 | ) |
|                                                                                                                                     |   |     |        |     |   |   |   |
|                                                                                                                                     |   |     | 1,814,752   |     |   | 1,877,595 |   |
|                                                                                                                                     |   |     |        |     |   |   |   |
| General                partners and other limited partners                                                                               |   |     |        |     |   |   |   |
| Capital                contributions, net of distributions                                                                               |   |     | (1,402,781  | )        |   | (438,848 | ) |
| Cumulative                loss                                                                                                           |   |     | (29,407,650 | )        |   | (28,365,866 | ) |
|                                                                                                                                     |   |     |        |     |   |   |   |
|                                                                                                                                     |   |     | (30,810,431 | )        |   | (28,804,714 | ) |
|                                                                                                                                     |   |     |        |     |   |   |   |
|                                                                                                                                     |   |     | (28,995,679 | )        |   | (26,927,119 | ) |
|                                                                                                                                     |   |     |        |     |   |   |   |
|                                                                                                                                     |   | $        | 60,537,629  |     | $      | 67,331,122 |   |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships (continued)** |
|--------|-----------------------------------------------------------------|

|                                                                                                                                                                        |   | **2007** |       | **2006** |   | **2005**   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|----------|--------|------------|--------|
|                                                                                                                                                                        |   |     |       |     |   |       |   |
| **REVENUE**                                                                                                                                                                 |   |     |       |     |   |       |   |   |   |   |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
| Rental                                                                                                                                                                      |   | $        | 11,813,515 |     | $      | 12,260,770 |   | $ | 11,969,192 |   |
| Interest                and other                                                                                                                                           |   |     | 384,392    |     |   | 398,638    |   |   | 681,809 |   |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
| TOTAL                REVENUE                                                                                                                                                |   |     | 12,197,907 |     |   | 12,659,408 |   |   | 12,651,001 |   |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
| **EXPENSES**                                                                                                                                                                |   |     |       |     |   |       |   |   |   |   |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
| Administrative                                                                                                                                                              |   |     | 2,684,920  |     |   | 2,831,638  |   |   | 2,720,218 |   |
| Utilities                                                                                                                                                                   |   |     | 1,785,113  |     |   | 1,784,166  |   |   | 1,581,055 |   |
| Operating                and maintenance                                                                                                                                    |   |     | 3,009,870  |     |   | 2,983,376  |   |   | 3,031,326 |   |
| Taxes                and insurance                                                                                                                                          |   |     | 1,232,301  |     |   | 1,283,973  |   |   | 1,269,953 |   |
| Financial                                                                                                                                                                   |   |     | 2,260,472  |     |   | 2,590,917  |   |   | 2,677,462 |   |
| Depreciation                and amortization                                                                                                                                |   |     | 3,937,524  |     |   | 4,160,276  |   |   | 4,123,905 |   |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
| TOTAL                EXPENSES                                                                                                                                               |   |     | 14,910,200 |     |   | 15,634,346 |   |   | 15,403,919 |   |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
| **NET                LOSS**                                                                                                                                                 |   | $        | (2,712,293 | )        | $      | (2,974,938 | )      | $ | (2,752,918 | ) |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
| **NET                LOSS ATTRIBUTABLE TO**                                                                                                                                 |   |     |       |     |   |       |   |   |   |   |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
| American                Tax Credit Properties III L.P.                                                                                                                      |   | $        | (67,384    | )        | $      | (97,326    | )      | $ | (156,237 | ) |
| General                partners and other limited partners, which includes $2,461,655, $2,668,471                and $2,360,295 of Partnership loss in excess of investment |   |     | (2,644,909 | )        |   | (2,877,612 | )      |   | (2,596,681 | ) |
|                                                                                                                                                                        |   |     |       |     |   |       |   |   |   |   |
|                                                                                                                                                                        |   | $        | (2,712,293 | )        | $      | (2,974,938 | )      | $ | (2,752,918 | ) |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships (continued)** |
|--------|-----------------------------------------------------------------|

| Name of Local Partnership                                      |   | Investmentin LocalPartnershipbalance as ofMarch 30,2007 |    | Investments(voluntaryadvances)during the yearendedMarch 30,2008 |   | Partnership'sequity inloss for theyear endedDecember 31,2007 |   | Adjustment tocarrying valueduring theyear endedMarch 30,2008 |    | Cashdistributionsreceivedduring theyear endedMarch 30,2008 (3) |   | Investmentin LocalPartnershipbalance as ofMarch 30,2008 |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|---------|--------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|---------|------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                                          |   |                                                                        |    |                                                                           |   |                                                                                  |   |                                                                                  |    |                                                                               |   |                                                                        |   |
| April                Gardens Apartments II Limited Partnership                |   | $                                                                           | — |                                                                           | $      | —                                                                               |   | $                                                                                     | — | (1)                                                                                | $      | —                                                                     |   | $ | — |   | $ | — |   |
| Ashland                Park Apartments, L.P.                                  |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Auburn                Family, L.P.                                            |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Batesville                Family, L.P.                                        |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Bay                Springs Elderly, L.P.                                      |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Brisas                del Mar Apartments Limited Partnership                  |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Bruce                Housing Associates, L.P.                                 |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Chestnut                Park Associates, L.P.                                 |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Chowan                Senior Manor Associates Limited Partnership             |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Christian                Street Commons Associates                            |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Country                View Apartments                                        |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Desarrollos                de Belen Limited Partnership                       |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Desarrollos                de Emaus Limited Partnership                       |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Ellinwood                Heights Apartments, L.P.                             |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Fulton                Street Houses Limited Partnership                       |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Hayes                Run Limited Partnership                                  |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Howard                L. Miller Sallisaw Apartments II, L.P.                  |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Hurlock                Meadow Limited Partnership                             |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Ivy                Family, L.P.                                               |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Justin                Associates                                              |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Lawrence                Road Properties, Ltd.                                 |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Labelle                Commons, Ltd.                                          |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Loma                Del Norte Limited Partnership                             |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Long                Reach Associates Limited Partnership                      |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Mirador                del Toa Limited Partnership                            |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Moore                Haven Commons, Ltd.                                      |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| NP-89                Limited Dividend Housing Association Limited Partnership |   |                                                                        | 576,812 |                                                                           |   | —                                                                               |   |                                                                                  | (52,205 | )                                                                                  |   | —                                                                     |   |   | (20,000 | ) |   | 504,607 |   |
| Nash                Hill Associates, Limited Partnership                      |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| North                Calhoun City, L.P.                                       |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Orange                City Plaza, Limited Partnership                         |   |                                                                        | — |                                                                           |   | 15,179                                                                                |   |                                                                                  | (15,179 | )(2)                                                                               |   | —                                                                     |   |   | — |   |   | — |   |
| Puerta                del Mar Limited Partnership                             |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Purvis                Heights Properties, L.P.                                |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Queen                Lane Investors                                           |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Somerset                Manor, Ltd.                                           |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Sugar                Cane Villas, Ltd.                                        |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Summerfield                Apartments Limited Partnership                     |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Sydney                Engel Associates L.P.                                   |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Union                Valley Associates Limited Partnership                    |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Walnut                Grove Family, L.P.                                      |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Waynesboro                Apartments Limited Partnership                      |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| West                Calhoun City, L.P.                                        |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Westminster                Apartments Limited Partnership                     |   |                                                                        | — |                                                                           |   | —                                                                               |   |                                                                                  | — | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
|                                                                          |   | $                                                                           | 576,812 |                                                                           | $      | 15,179                                                                                |   | $                                                                                     | (67,384 | )                                                                                  | $      | —                                                                     |   | $ | (20,000 | ) | $ | 504,607 |   |

| (1) | Additional                equity in loss of investment is not allocated to the Partnership                until                equity in income is earned or additional investment is made by the                Partnership. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                Partnership’s equity in loss of an investment in a Local Partnership is                limited to the remaining investment                balance. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The                total excludes $26,118 of distributions received classified as other                income from local partnerships. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships (continued)** |
|--------|-----------------------------------------------------------------|

| Name of Local Partnership                                           |   | Investmentin LocalPartnershipbalance as of March 30, 2006 |    | Investments(voluntaryadvances)during theyear endedMarch 30,2007 |   | Partnership'sequity in                income(loss) for theyear endedDecember 31,2006 |   | Adjustmentto carryingvalue during theyear endedMarch 30,2007 |     | Cashdistributionsreceivedduring theyear endedMarch 30,2007 (3) |   | Investmentin LocalPartnershipbalance as ofMarch 30,2007 |   |
|------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|----------|------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                                                               |   |                                                                                    |    |                                                                           |   |                                                                                                          |   |                                                                                  |     |                                                                               |   |                                                                        |   |
| April                Gardens Apartments II Limited Partnership                     |   | $                                                                                       | — |                                                                           | $      | —                                                                                                       |   | $                                                                                     | —  | (1)                                                                                | $      | —                                                                     |   | $ | — |   | $ | — |   |
| Ashland                Park Apartments, L.P.                                       |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Auburn                Family, L.P.                                                 |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Batesville                Family, L.P.                                             |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Bay                Springs Elderly, L.P.                                           |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Brisas                del Mar Apartments Limited Partnership                       |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Bruce                Housing Associates, L.P.                                      |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Carrington                Limited Dividend Housing Association Limited Partnership |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Chestnut                Park Associates, L.P.                                      |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Chowan                Senior Manor Associates Limited Partnership                  |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Christian                Street Commons Associates                                 |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Country                View Apartments                                             |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Desarrollos                de Belen Limited Partnership                            |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Desarrollos                de Emaus Limited Partnership                            |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Ellinwood                Heights Apartments, L.P.                                  |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Fulton                Street Houses Limited Partnership                            |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Hayes                Run Limited Partnership                                       |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Howard                L. Miller Sallisaw Apartments II, L.P.                       |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Hurlock                Meadow Limited Partnership                                  |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Ivy                Family, L.P.                                                    |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Justin                Associates                                                   |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Lawrence                Road Properties, Ltd.                                      |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Labelle                Commons, Ltd.                                               |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Loma                Del Norte Limited Partnership                                  |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Long                Reach Associates Limited Partnership                           |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Mirador                del Toa Limited Partnership                                 |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Moore                Haven Commons, Ltd.                                           |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| NP-89                Limited Dividend Housing Association Limited Partnership      |   |                                                                                    | 578,827 |                                                                           |   | —                                                                                                       |   |                                                                                  | 7,985    |                                                                               |   | —                                                                     |   |   | (10,000 | ) |   | 576,812 |   |
| Nash                Hill Associates, Limited Partnership                           |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| North                Calhoun City, L.P.                                            |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Orange                City Plaza, Limited Partnership                              |   |                                                                                    | — |                                                                           |   | 105,311                                                                                                       |   |                                                                                  | (105,311 | )(2)                                                                               |   | —                                                                     |   |   | — |   |   | — |   |
| Puerta                del Mar Limited Partnership                                  |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Purvis                Heights Properties, L.P.                                     |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Queen                Lane Investors                                                |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Somerset                Manor, Ltd.                                                |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Sugar                Cane Villas, Ltd.                                             |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Summerfield                Apartments Limited Partnership                          |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Sydney                Engel Associates L.P.                                        |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Union                Valley Associates Limited Partnership                         |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Walnut                Grove Family, L.P.                                           |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Waynesboro                Apartments Limited Partnership                           |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| West                Calhoun City, L.P.                                             |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                                |   | —                                                                     |   |   | — |   |   | — |   |
| Westminster                Apartments Limited Partnership                          |   |                                                                                    | — |                                                                           |   | —                                                                                                       |   |                                                                                  | —  | (1)                                                                      |   | —                                                                     |   |   | — |   |   | — |   |
|                                                                               |   | $                                                                                       | 578,827 |                                                                           | $      | 105,311                                                                                                       |   | $                                                                                     | (97,326  | )                                                                                  | $      | —                                                                     |   | $ | (10,000 | ) | $ | 576,812 |   |

| (1) | Additional                equity in loss of investment is not allocated to the Partnership                until                equity in income is earned or additional investment is made by the                Partnership. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The                Partnership’s equity in loss of an investment in a Local Partnership is                limited to the remaining investment                balance. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The                total excludes $23,040 of distributions received classified as other                income from local partnerships and $149,895 received in connection                with                disposal of limited partner interests/local partnership                properties. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships (continued)** |
|--------|-----------------------------------------------------------------|

| Name of Local Partnership                                      |   | Mortgage loans payable |       |  Land |   | Buildings andimprovements |   | Accumulateddepreciation |        |
|-------------------------------------------------------------------------------|--------|----------------------------------|------------|------------|--------|--------------------------------|--------|-------------------------|-------------|
|                                                                          |   |                             |       |       |   |                           |   |                    |        |
| April                Gardens Apartments II Limited Partnership                |   | $                                | 1,940,817  |       | $      | 39,984                         |   | $                       | 2,554,215   |   | $ | (1,710,647 | ) |
| Ashland                Park Apartments, L.P.                                  |   |                             | 1,007,252  |       |   | 50,160                         |   |                    | 1,276,935   |   |   | (785,001 | ) |
| Auburn                Family, L.P.                                            |   |                             | 444,579    |       |   | 20,000                         |   |                    | 666,684     |   |   | (306,420 | ) |
| Batesville                Family, L.P.                                        |   |                             | 1,402,915  |       |   | 52,000                         |   |                    | 1,882,647   |   |   | (941,357 | ) |
| Bay                Springs Elderly, L.P.                                      |   |                             | 657,811    |       |   | 38,000                         |   |                    | 933,986     |   |   | (451,636 | ) |
| Brisas                del Mar Apartments Limited Partnership                  |   |                             | 2,571,899  |       |   | 100,280                        |   |                    | 3,488,197   |   |   | (2,306,527 | ) |
| Bruce                Housing Associates, L.P.                                 |   |                             | 1,071,790  |       |   | 16,000                         |   |                    | 1,630,448   |   |   | (915,851 | ) |
| Chestnut                Park Associates, L.P.                                 |   |                             | 4,461,175  |       |   | 781,700                        |   |                    | 8,693,011   |   |   | (5,264,153 | ) |
| Chowan                Senior Manor Associates Limited Partnership             |   |                             | 1,203,845  |       |   | 86,101                         |   |                    | 1,578,917   |   |   | (971,012 | ) |
| Christian                Street Commons Associates                            |   |                             | 536,317    |       |   | —                        |   |                    | 7,545       |   |   | (2,455 | ) |
| Country                View Apartments                                        |   |                             | 910,551    |       |   | 35,698                         |   |                    | 1,289,750   |   |   | (522,313 | ) |
| Desarrollos                de Belen Limited Partnership                       |   |                             | 1,827,079  |       |   | 96,190                         |   |                    | 2,519,166   |   |   | (1,290,216 | ) |
| Desarrollos                de Emaus Limited Partnership                       |   |                             | 3,105,194  |       |   | 214,000                        |   |                    | 4,046,102   |   |   | (1,992,899 | ) |
| Ellinwood                Heights Apartments, L.P.                             |   |                             | 668,470    |       |   | 10,000                         |   |                    | 1,009,768   |   |   | (421,737 | ) |
| Fulton                Street Houses Limited Partnership                       |   |                             | 3,869,930  |       |   | 2                              |   |                    | 5,983,089   |   |   | (3,454,435 | ) |
| Hayes                Run Limited Partnership                                  |   |                             | 1,385,839  |       |   | 85,060                         |   |                    | 1,694,620   |   |   | (731,324 | ) |
| Howard                L. Miller Sallisaw Apartments II, L.P.                  |   |                             | 599,282    |       |   | 39,000                         |   |                    | 802,984     |   |   | (307,250 | ) |
| Hurlock                Meadow Limited Partnership                             |   |                             | 1,232,292  |       |   | 49,525                         |   |                    | 1,639,842   |   |   | (976,382 | ) |
| Ivy                Family, L.P.                                               |   |                             | 742,126    |       |   | 11,000                         |   |                    | 1,229,842   |   |   | (675,888 | ) |
| Justin                Associates                                              |   |                             | 2,098,457  |       |   | 27,472                         |   |                    | 4,372,042   |   |   | (2,548,404 | ) |
| LaBelle                Commons, Ltd.                                          |   |                             | 983,627    |       |   | 98,947                         |   |                    | 1,263,737   |   |   | (684,544 | ) |
| Lawrence                Road Properties, Ltd.                                 |   |                             | 737,825    |       |   | 50,000                         |   |                    | 982,221     |   |   | (485,093 | ) |
| Loma                Del Norte Limited Partnership                             |   |                             | 1,398,854  |       |   | 84,874                         |   |                    | 1,956,291   |   |   | (833,781 | ) |
| Long                Reach Associates Limited Partnership                      |   |                             | 1,438,440  |       |   | 118,446                        |   |                    | 1,939,212   |   |   | (867,365 | ) |
| Mirador                del Toa Limited Partnership                            |   |                             | 1,822,423  |       |   | 105,000                        |   |                    | 2,374,461   |   |   | (1,587,968 | ) |
| Moore                Haven Commons, Ltd.                                      |   |                             | 901,752    |       |   | 73,645                         |   |                    | 1,199,226   |   |   | (750,140 | ) |
| NP-89                Limited Dividend Housing Association Limited Partnership |   |                             | 3,096,140  |       |   | 150,000                        |   |                    | 7,897,442   |   |   | (4,639,591 | ) |
| Nash                Hill Associates, Limited Partnership                      |   |                             | 1,427,370  |       |   | 123,876                        |   |                    | 1,781,667   |   |   | (780,485 | ) |
| North                Calhoun City, L.P.                                       |   |                             | 455,102    |       |   | 12,000                         |   |                    | 670,388     |   |   | (343,399 | ) |
| Orange                City Plaza, Limited Partnership                         |   |                             | 382,467    |       |   | 53,904                         |   |                    | 1,051,852   |   |   | (501,977 | ) |
| Puerta                del Mar Limited Partnership                             |   |                             | 2,447,306  |       |   | 115,000                        |   |                    | 3,247,655   |   |   | (2,119,365 | ) |
| Purvis                Heights Properties, L.P.                                |   |                             | 1,116,418  |       |   | 47,000                         |   |                    | 1,589,723   |   |   | (722,590 | ) |
| Queen                Lane Investors                                           |   |                             | 1,647,041  |       |   | 60,301                         |   |                    | 2,841,369   |   |   | (1,729,552 | ) |
| Somerset                Manor, Ltd.                                           |   |                             | 873,408    |       |   | 53,383                         |   |                    | 1,130,381   |   |   | (694,719 | ) |
| Sugar                Cane Villas, Ltd.                                        |   |                             | 3,217,284  |       |   | 58,500                         |   |                    | 4,093,772   |   |   | (2,548,464 | ) |
| Summerfield                Apartments Limited Partnership                     |   |                             | 1,488,833  |       |   | 195,411                        |   |                    | 2,790,670   |   |   | (1,113,291 | ) |
| Sydney                Engel Associates L.P.                                   |   |                             | 15,460,803 |       |   | 284,305                        |   |                    | 20,286,434  |   |   | (12,240,962 | ) |
| Union                Valley Associates Limited Partnership                    |   |                             | 1,407,722  |       |   | 97,800                         |   |                    | 1,758,877   |   |   | (756,799 | ) |
| Walnut                Grove Family, L.P.                                      |   |                             | 825,870    |       |   | 30,000                         |   |                    | 1,117,674   |   |   | (582,642 | ) |
| Waynesboro                Apartments Limited Partnership                      |   |                             | 1,439,826  |       |   | 76,000                         |   |                    | 1,794,917   |   |   | (795,610 | ) |
| West                Calhoun City, L.P.                                        |   |                             | 688,096    |       |   | 18,000                         |   |                    | 1,182,875   |   |   | (568,170 | ) |
| Westminster                Apartments Limited Partnership                     |   |                             | 1,607,972  |       |   | 51,651                         |   |                    | 1,253,506   |   |   | (1,074,703 | ) |
|                                                                          |   | $                                | 76,602,199 |       | $      | 3,710,215                      |   | $                       | 111,504,140 |   | $ | (62,997,117 | ) |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships (continued)** |
|--------|-----------------------------------------------------------------|

| Name of Local Partnership                                           |   | Mortgage loans payable |       |  Land |   | Buildings andimprovements |   | Accumulateddepreciation |        |
|------------------------------------------------------------------------------------|--------|----------------------------------|------------|------------|--------|--------------------------------|--------|-------------------------|-------------|
|                                                                               |   |                             |       |       |   |                           |   |                    |        |
| April                Gardens Apartments II Limited Partnership                     |   | $                                | 1,950,265  |       | $      | 39,984                         |   | $                       | 2,509,656   |   | $ | (1,610,646 | ) |
| Ashland                Park Apartments, L.P.                                       |   |                             | 1,012,345  |       |   | 50,160                         |   |                    | 1,270,002   |   |   | (734,965 | ) |
| Auburn                Family, L.P.                                                 |   |                             | 448,594    |       |   | 20,000                         |   |                    | 592,581     |   |   | (292,150 | ) |
| Batesville                Family, L.P.                                             |   |                             | 1,408,946  |       |   | 52,000                         |   |                    | 1,871,107   |   |   | (893,995 | ) |
| Bay                Springs Elderly, L.P.                                           |   |                             | 660,822    |       |   | 38,000                         |   |                    | 933,986     |   |   | (427,834 | ) |
| Brisas                del Mar Apartments Limited Partnership                       |   |                             | 2,585,595  |       |   | 100,280                        |   |                    | 3,407,603   |   |   | (2,161,762 | ) |
| Bruce                Housing Associates, L.P.                                      |   |                             | 1,077,661  |       |   | 16,000                         |   |                    | 1,609,710   |   |   | (860,809 | ) |
| Carrington                Limited Dividend Housing Association Limited Partnership |   |                             | 3,123,538  |       |   | 200,000                        |   |                    | 6,617,582   |   |   | (3,988,180 | ) |
| Chestnut                Park Associates, L.P.                                      |   |                             | 4,574,324  |       |   | 781,700                        |   |                    | 8,700,511   |   |   | (4,949,265 | ) |
| Chowan                Senior Manor Associates Limited Partnership                  |   |                             | 1,212,836  |       |   | 86,101                         |   |                    | 1,530,162   |   |   | (915,320 | ) |
| Christian                Street Commons Associates                                 |   |                             | 547,872    |       |   | —                        |   |                    | 7,545       |   |   | (2,181 | ) |
| Country                View Apartments                                             |   |                             | 914,962    |       |   | 35,698                         |   |                    | 1,280,230   |   |   | (486,312 | ) |
| Desarrollos                de Belen Limited Partnership                            |   |                             | 1,835,769  |       |   | 96,190                         |   |                    | 2,519,166   |   |   | (1,207,344 | ) |
| Desarrollos                de Emaus Limited Partnership                            |   |                             | 3,119,964  |       |   | 214,000                        |   |                    | 4,046,102   |   |   | (1,858,909 | ) |
| Ellinwood                Heights Apartments, L.P.                                  |   |                             | 671,724    |       |   | 10,000                         |   |                    | 1,002,504   |   |   | (386,866 | ) |
| Fulton                Street Houses Limited Partnership                            |   |                             | 3,869,930  |       |   | 2                              |   |                    | 5,978,435   |   |   | (3,229,747 | ) |
| Hayes                Run Limited Partnership                                       |   |                             | 1,392,485  |       |   | 85,060                         |   |                    | 1,686,732   |   |   | (664,244 | ) |
| Howard                L. Miller Sallisaw Apartments II, L.P.                       |   |                             | 602,039    |       |   | 39,000                         |   |                    | 737,883     |   |   | (290,422 | ) |
| Hurlock                Meadow Limited Partnership                                  |   |                             | 1,238,575  |       |   | 49,525                         |   |                    | 1,633,277   |   |   | (912,452 | ) |
| Ivy                Family, L.P.                                                    |   |                             | 750,706    |       |   | 11,000                         |   |                    | 1,121,325   |   |   | (639,336 | ) |
| Justin                Associates                                                   |   |                             | 2,114,932  |       |   | 27,472                         |   |                    | 4,372,042   |   |   | (2,389,118 | ) |
| LaBelle                Commons, Ltd.                                               |   |                             | 988,498    |       |   | 98,947                         |   |                    | 1,263,737   |   |   | (636,268 | ) |
| Lawrence                Road Properties, Ltd.                                      |   |                             | 741,086    |       |   | 50,000                         |   |                    | 973,606     |   |   | (459,758 | ) |
| Loma                Del Norte Limited Partnership                                  |   |                             | 1,405,307  |       |   | 84,874                         |   |                    | 1,931,832   |   |   | (777,628 | ) |
| Long                Reach Associates Limited Partnership                           |   |                             | 1,445,189  |       |   | 118,446                        |   |                    | 1,924,333   |   |   | (817,226 | ) |
| Mirador                del Toa Limited Partnership                                 |   |                             | 1,832,459  |       |   | 105,000                        |   |                    | 2,364,101   |   |   | (1,512,129 | ) |
| Moore                Haven Commons, Ltd.                                           |   |                             | 906,141    |       |   | 73,645                         |   |                    | 1,199,226   |   |   | (707,695 | ) |
| NP-89                Limited Dividend Housing Association Limited Partnership      |   |                             | 3,282,877  |       |   | 150,000                        |   |                    | 7,849,324   |   |   | (4,347,376 | ) |
| Nash                Hill Associates, Limited Partnership                           |   |                             | 1,434,317  |       |   | 123,876                        |   |                    | 1,762,654   |   |   | (729,890 | ) |
| North                Calhoun City, L.P.                                            |   |                             | 460,664    |       |   | 12,000                         |   |                    | 670,388     |   |   | (328,626 | ) |
| Orange                City Plaza, Limited Partnership                              |   |                             | 393,027    |       |   | 53,904                         |   |                    | 1,051,852   |   |   | (477,983 | ) |
| Puerta                del Mar Limited Partnership                                  |   |                             | 2,460,339  |       |   | 115,000                        |   |                    | 3,157,525   |   |   | (1,984,119 | ) |
| Purvis                Heights Properties, L.P.                                     |   |                             | 1,121,965  |       |   | 47,000                         |   |                    | 1,571,653   |   |   | (688,618 | ) |
| Queen                Lane Investors                                                |   |                             | 1,647,041  |       |   | 60,301                         |   |                    | 2,840,568   |   |   | (1,622,323 | ) |
| Somerset                Manor, Ltd.                                                |   |                             | 877,468    |       |   | 53,383                         |   |                    | 1,126,905   |   |   | (654,492 | ) |
| Sugar                Cane Villas, Ltd.                                             |   |                             | 3,232,530  |       |   | 58,500                         |   |                    | 4,093,772   |   |   | (2,402,442 | ) |
| Summerfield                Apartments Limited Partnership                          |   |                             | 1,532,337  |       |   | 195,411                        |   |                    | 2,775,519   |   |   | (1,043,241 | ) |
| Sydney                Engel Associates L.P.                                        |   |                             | 15,649,510 |       |   | 284,305                        |   |                    | 20,263,692  |   |   | (11,466,992 | ) |
| Union                Valley Associates Limited Partnership                         |   |                             | 1,414,313  |       |   | 97,800                         |   |                    | 1,758,877   |   |   | (713,845 | ) |
| Walnut                Grove Family, L.P.                                           |   |                             | 829,424    |       |   | 30,000                         |   |                    | 1,074,112   |   |   | (553,737 | ) |
| Waynesboro                Apartments Limited Partnership                           |   |                             | 1,447,008  |       |   | 76,000                         |   |                    | 1,794,917   |   |   | (751,140 | ) |
| West                Calhoun City, L.P.                                             |   |                             | 701,450    |       |   | 18,000                         |   |                    | 1,104,158   |   |   | (539,046 | ) |
| Westminster                Apartments Limited Partnership                          |   |                             | 1,607,972  |       |   | 51,651                         |   |                    | 1,234,380   |   |   | (997,799 | ) |
|                                                                               |   | $                                | 80,524,806 |       | $      | 3,910,215                      |   | $                       | 117,215,272 |   | $ | (63,114,230 | ) |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **5.** | **Investment                in Local Partnerships (continued)** |
|--------|-----------------------------------------------------------------|

|                                      |   | Balance as ofDecember 31, 2006 |        | Net changeduring the yearendedDecember 31, 2007 |   | Balance as ofDecember 31, 2007 |                |
|-------------------------------------------|--------|----------------------------------------------------|-------------|--------------------------------------------------------------------------|--------|----------------------------------------------------|---------------------|
|                                      |   |                                               |        |                                                                     |   |                                               |                |
| Land                                      |   | $                                                  | 3,910,215   |                                                                     | $      | (200,000                                           | )                   | $ | 3,710,215 |   |
| Buildings                and improvements |   |                                               | 117,215,272 |                                                                     |   | (5,711,132                                         | )                   |   | 111,504,140 |   |
|                                      |   |                                               | 121,125,487 |                                                                     |   | (5,911,132                                         | )                   |   | 115,214,355 |   |
| Accumulated                depreciation   |   |                                               | (63,114,230 | )                                                                        |   | 117,113                                            |                |   | (62,997,117 | ) |
|                                      |   | $                                                  | 58,011,257  |                                                           | $      | (5,794,019                                         | )    | $ | 52,217,238 |   |

| **6.** | **Transactions                with General Partner and                Affiliates** |
|--------|------------------------------------------------------------------------------------|

|                                            |   | 2008   |    | 2007     |   | 2006    |   |
|-------------------------------------------------|--------|--------|---------|----------|--------|---------|--------|
|                                            |   | Paid   |    | Incurred |   | Paid    |   | Incurred |   | Paid |   | Incurred |   |
|                                            |   |   |    |     |   |    |   |   |   |   |   |   |   |
| Management                fees (see Note 8)     |   | $      | 100,000 |     | $      | 221,540 |   | $ | 159,334 |   | $ | 228,313 |   | $ | 190,479 |   | $ | 230,571 |   |
|                                            |   |   |    |     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Administration                fees (see Note 8) |   |   | 15,517  |     |   | 221,540 |   |   | 15,553 |   |   | 228,313 |   |   | 132,578 |   |   | 230,571 |   |

|                                    |   |  2007 |   |  2006 |   |  2005 |   |
|-----------------------------------------|--------|------------|--------|------------|--------|------------|--------|
|                                    |   | Paid       |   | Incurred   |   | Paid       |   | Incurred |   | Paid |   | Incurred |   |
|                                    |   |       |   |       |   |       |   |   |   |   |   |   |   |
| Property                management fees |   | $          | 42,128 |       | $      | 40,010     |   | $ | 42,371 |   | $ | 40,010 |   | $ | 39,220 |   | $ | 40,010 |   |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **7.** | **Taxable                Loss** |
|--------|---------------------------------|

|                                                                                                                                        |   | 2008   |       | 2007   |   | 2006       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|------------|--------|
|                                                                                                                                        |   |   |       |   |   |       |   |
| Financial                statement net loss for the years ended March 30, 2008, 2007 and                2006                                |   | $      | (551,682   | )      | $      | (431,945   | )      | $ | (620,078 | ) |
|                                                                                                                                        |   |   |       |   |   |       |   |   |   |   |
| Add                (less) net transactions occurring between                                                                                |   |   |       |   |   |       |   |   |   |   |
| January                1, 2005 and March 30, 2005                                                                                           |   |   | —    |   |   | —    |   |   | (90,683 | ) |
| January                1, 2006 and March 30, 2006                                                                                           |   |   | —    |   |   | (124,512   | )      |   | 124,512 |   |
| January                1, 2007 and March 30, 2007                                                                                           |   |   | 17,889     |   |   | (17,889    | )      |   | — |   |
| January                1, 2008 and March 30, 2008                                                                                           |   |   | 125,165    |   |   | —    |   |   | — |   |
|                                                                                                                                        |   |   |       |   |   |       |   |   |   |   |
| Adjusted                financial statement net loss for the years ended December 31, 2007,                2006                and 2005     |   |   | (408,628   | )      |   | (574,346   | )      |   | (586,249 | ) |
|                                                                                                                                        |   |   |       |   |   |       |   |   |   |   |
| Adjustment                to management and administration fees pursuant to Internal Revenue                Code                Section 267 |   |   | 314,014    |   |   | 140,632    |   |   | 139,790 |   |
|                                                                                                                                        |   |   |       |   |   |       |   |   |   |   |
| Differences                arising from equity in loss of investment in local                partnerships                                   |   |   | (2,639,301 | )      |   | (2,538,962 | )      |   | (2,621,397 | ) |
|                                                                                                                                        |   |   |       |   |   |       |   |   |   |   |
| Other                income from local partnerships                                                                                         |   |   | (18,776    | )      |   | (8,384     | )      |   | (39,332 | ) |
|                                                                                                                                        |   |   |       |   |   |       |   |   |   |   |
| Other                differences                                                                                                            |   |   | 15,876     |   |   | (18,185    | )      |   | (144 | ) |
|                                                                                                                                        |   |   |       |   |   |       |   |   |   |   |
| Tax                return net loss for the years ended December 31, 2007, 2006 and                2005                                      |   | $      | (2,466,815 | )      | $      | (2,999,245 | )      | $ | (3,107,332 | ) |

|                                                                  |   | 2007   |        | 2006   |   |
|-----------------------------------------------------------------------|--------|--------|-------------|--------|--------|
|                                                                  |   |   |        |   |   |
| Investment                in local partnerships - financial reporting |   | $      | 504,607     |   | $      | 576,812 |   |
| Investment                in local partnerships - tax                 |   |   | (23,584,237 | )      |   | (21,111,854 | ) |
|                                                                  |   |   |        |   |   |   |   |
|                                                                  |   | $      | 24,088,844  |   | $      | 21,688,666 |   |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **8.** | **Commitments                and Contingencies** |
|--------|--------------------------------------------------|

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **9.** | **Fair                Value of Financial                Instruments** |
|--------|-----------------------------------------------------------------------|

| **10.** | **Quarterly                Financial Information -                Unaudited** |
|---------|-------------------------------------------------------------------------------|

|                                                                       |   | First   |     | Second  |   | Third    |   | Fourth  |     |
|----------------------------------------------------------------------------|--------|---------|----------|---------|--------|----------|--------|---------|----------|
|                                                                       |   | Quarter |     | Quarter |   | Quarter  |   | Quarter |     |
|                                                                       |   |    |     |    |   |     |   |    |     |
| 2008                                                                       |   |    |     |    |   |     |   |    |     |
|                                                                       |   |    |     |    |   |     |   |    |     |
| Total                revenue                                               |   | $       | 26,521   |    | $      | 17,450   |   | $       | 16,344   |   | $ | 22,506 |   |
|                                                                       |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Total                expenses                                              |   |    | (142,623 | )       |   | (133,311 | )      |    | (143,514 | ) |   | (147,671 | ) |
|                                                                       |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Equity                in income (loss) of investment in local partnerships |   |    | 1,563    |    |   | 23,786   |   |    | 5,841    |   |   | (98,574 | ) |
|                                                                       |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Net                loss                                                    |   |    | (114,539 | )       |   | (92,075  | )      |    | (121,329 | ) |   | (223,739 | ) |
|                                                                       |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Net                loss per unit of limited partnership interest           |   |    | —  |    |   | —  |   |    | —  |   |   | — |   |

----

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

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

**MARCH      30, 2008, 2007 AND 2006**

| **10.** | **Quarterly                Financial Information - Unaudited                (continued)** |
|---------|-------------------------------------------------------------------------------------------|

|                                                                                                  |   | First   |     | Second  |   | Third    |   | Fourth  |     |
|-------------------------------------------------------------------------------------------------------|--------|---------|----------|---------|--------|----------|--------|---------|----------|
|                                                                                                  |   | Quarter |     | Quarter |   | Quarter  |   | Quarter |     |
|                                                                                                  |   |    |     |    |   |     |   |    |     |
| 2007                                                                                                  |   |    |     |    |   |     |   |    |     |
|                                                                                                  |   |    |     |    |   |     |   |    |     |
| Total                revenue                                                                          |   | $       | 39,254   |    | $      | 29,554   |   | $       | 11,411   |   | $ | 14,865 |   |
|                                                                                                  |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Total                expenses                                                                         |   |    | (152,922 | )       |   | (134,314 | )      |    | (146,491 | ) |   | (145,871 | ) |
|                                                                                                  |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Equity                in income (loss) of investment in local partnerships                            |   |    | (53,754  | )       |   | (6,252   | )      |    | (60,585  | ) |   | 23,265 |   |
|                                                                                                  |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Gain                on disposal limited partner interests/local partnership                properties |   |    | —  |    |   | —  |   |    | —  |   |   | 149,895 |   |
|                                                                                                  |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Net                income (loss)                                                                      |   |    | (167,422 | )       |   | (111,012 | )      |    | (195,665 | ) |   | 42,154 |   |
|                                                                                                  |   |    |     |    |   |     |   |    |     |   |   |   |   |
| Net                income (loss) per unit of limited partnership interest                             |   |    | —  |    |   | —  |   |    | —  |   |   | — |   |

----

**Item      9.**
**Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure**

**Item      9A. **
**Controls      and Procedures**

**Item      9A(T). **
**Management’s      Annual Report on Internal Control over Financial      Reporting**

*Internal      Control - Integrated Framework*

**Item      9B. **
**Other      Information**

----

**PART      III**

**Item      10.**
**Directors      and Executive Officers of the Registrant**

|                                |         | Served in present       |         |                                        |
|-------------------------------------|--------------|-----------------------------------|--------------|---------------------------------------------|
| Name                                |         | capacity since1    |         | Position held                          |
|                                |         |                              |         |                                        |
| Richard                Paul Richman |         | September                21, 1989 |         | Director                                    |
| David                A. Salzman     |         | February                1, 2001   |         | President                                   |
| Neal                Ludeke          |         | September                21, 1989 |         | Vice                President and Treasurer |
| Gina                K. Dodge        |    | September                21, 1989 |    | Secretary                                   |

----

**Richard      Paul Richman**

**David      A. Salzman, **

**Neal      Ludeke**

**Gina      K. Dodge**

----

**Item      11.**
**Executive      Compensation**

**Item      12.**
**Security      Ownership of Certain Beneficial Owners and Management and Related Stockholder      Matters**

**Item      13. **
**Certain      Relationships and Related Transactions**

----

**Item      14. **
**Principal      Accountant Fees and Services**

|                              |   | 2008   |    | 2007   |   |
|-----------------------------------|--------|--------|---------|--------|--------|
|                              |   |   |    |   |   |
| Audit                Fees         |   | $      | 50,250  |   | $      | 50,000 |   |
| Audit-Related                Fees |   |   | — |   |   | — |   |
| Tax                Fees           |   | $      | 10,500  |   | $      | 10,000 |   |
| All                Other Fees     |   |   | — |   |   | — |   |

----

**PART      IV**

**Item      15.**
**Exhibits      and Financial Statement Schedules**

**(a)      **
**Financial      Statements, Financial Statement Schedules and Exhibits**

**(1)      **
**Financial      Statements**

**(2)      **
**Financial      Statement Schedules**

**(3)      **
**Exhibits**

|   |   | Exhibit                                                                                                                                                                                                             |   | Incorporated                byReference                to                                                 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                |   |                                                                                                      |
| 10.1   |   | April                Gardens Apartments II Limited Partnership (A Delaware Limited Partnership)                Amended and Restated Agreement of Limited Partnership                                                |   | Exhibit                10.1 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                |   |                                                                                                      |
| 10.2   |   | Ashland                Park Apartments, L.P. Second Amended and Restated Agreement of Limited                Partnership                                                                                            |   | Exhibit                10.2 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                                |   |                                                                                                      |
| 10.3   |   | Auburn                Family, L.P. Amended and Restated Limited Partnership Agreement and                Certificate of Limited Partnership                                                                         |   | Exhibit                10.1 to Form 10-Q Report dated December 31, 1991(File                No. 0-19217)  |
|   |   |                                                                                                                                                                                                                |   |                                                                                                      |
| 10.4   |   | Amended                No. 2 to the Batesville Family, L.P. Amended and Restated Agreement                of                Limited Partnership                                                                     |   | Exhibit                10.2 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                |   |                                                                                                      |
| 10.5   |   | Batesville                Family, L.P. Amendment No. 3 to the Amended and Restated Agreement                of                Limited Partnership                                                                   |   | Exhibit                10.2 to Form 10-Q Report dated December 31, 1991(File                No. 0-19217)  |
|   |   |                                                                                                                                                                                                                |   |                                                                                                      |
| 10.6   |   | Bay                Springs Elderly, L.P. (A Mississippi Limited Partnership) Amended                and                Restated Limited Partnership Agreement and Certificate of Limited                Partnership |   | Exhibit                10.1 to Form 10-Q Report dated September 29, 1991(File                No. 0-19217) |
|   |   |                                                                                                                                                                                                                |   |                                                                                                      |
| 10.7   |   | Brisas                del Mar Apartments Limited Partnership (A Delaware Limited Partnership)                Amended and Restated Agreement of Limited Partnership                                                  |   | Exhibit                10.3 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                |   |                                                                                                      |
| 10.8   |   | Amendment                No. 1 to the Bruce Housing Associates, L.P. Amended and Restated                Agreement                of Limited Partnership                                                            |   | Exhibit                10.8 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)    |

----

|   |   | Exhibit                                                                                                                                                                                                             |   | Incorporated                byReference                to                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.9   |   | Amendment                No. 2 to the Bruce Housing Associates, L.P. Amended and Restated                Agreement                of Limited Partnership                                                            |   | Exhibit                10.4 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.10  |   | Bruce                Housing Associates, L.P. Amendment No. 3 to the Amended and Restated                Agreement of Limited Partnership                                                                           |   | Exhibit                10.3 to Form 10-Q Report dated December 31, 1991(File                No. 0-19217)   |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.11  |   | Carrington                Limited Dividend Housing Association Limited Partnership Amended                and                Restated Agreement of Limited Partnership                                              |   | Exhibit                10.1 to Form 10-Q Report dated September 29, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.12  |   | Carrington                Limited Dividend Housing Association Limited Partnership Second Amended                and Restated Agreement of Limited Partnership                                                      |   | Exhibit                10.2 to Form 10-Q Report dated September 29, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.13  |   | Carrington                Limited Dividend Housing Association Limited Partnership Amendment                No. 1                to the Second Amended and Restated Agreement of Limited                Partnership |   | Exhibit                10.5 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.14  |   | Chestnut                Park Associates, L.P. Amended and Restated Agreement of Limited                Partnership                                                                                                  |   | Exhibit                10.3 to Form 10-Q Report dated September 29, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.15  |   | Chowan                Senior Manor Associates Limited Partnership Amended and Restated                Agreement                of Limited Partnership                                                               |   | Exhibit                10.15 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.16  |   | Christian                Street Commons Associates Amended and Restated Limited Partnership                Agreement and Certificate of Limited Partnership                                                         |   | Exhibit                10.16 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.17  |   | Country                View Apartments Second Amended and Restated Limited Partnership Agreement                and Certificate of Limited Partnership                                                              |   | Exhibit                10.17 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.18  |   | Desarrollos                de Belen Limited Partnership Amended and Restated Agreement of Limited                Partnership                                                                                        |   | Exhibit                10.18 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.19  |   | Desarrollos                de Emaus Limited Partnership Amended and Restated Agreement of Limited                Partnership                                                                                        |   | Exhibit                10.19 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                                |   |                                                                                                       |
| 10.20  |   | Ellinwood                Heights Apartments, L.P. Amended and Restated Agreement of Limited                Partnership                                                                                              |   | Exhibit                10.1 to Form 10-Q Report dated June 29, 1991(File                No. 0-19217)       |

----

|   |   | Exhibit                                                                                                                                                  |   | Incorporated                byReference                to                                                 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.21  |   | Fulton                Street Houses Limited Partnership Amended and Restated Agreement                of                Limited Partnership              |   | Exhibit                10.21 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)   |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.22  |   | Hayes                Run Limited Partnership Amended and Restated Agreement of Limited                Partnership                                        |   | Exhibit                10.2 to Form 10-Q Report dated June 29, 1991(File                No. 0-19217)      |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.23  |   | Howard                L. Miller Sallisaw Apartments II, L.P. Third Amended and Restated                Agreement and Certificate of Limited Partnership  |   | Exhibit                10.10 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)   |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.24  |   | Hurlock                Meadow Limited Partnership Amended and Restated Limited Partnership                Agreement                                      |   | Exhibit                10.24 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)   |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.25  |   | Amendment                No. 1 to the Ivy Family, L.P. Amended and Restated Agreement of Limited                Partnership                              |   | Exhibit                10.6 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.26  |   | Ivy                Family, L.P. Amendment No. 3 to the Amended and Restated Agreement                of                Limited Partnership               |   | Exhibit                10.4 to Form 10-Q Report dated December 31, 1991(File                No. 0-19217)  |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.27  |   | Justin                Associates Amended and Restated Agreement and Certificate of Limited                Partnership                                    |   | Exhibit                10.7 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.28  |   | LaBelle                Commons, Ltd. Amended and Restated Agreement of Limited                Partnership                                                |   | Exhibit                10.13 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)   |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.29  |   | LaBelle                Commons, Ltd. Amendment No. 1 to Amended and Restated Agreement of                Limited                Partnership              |   | Exhibit                10.29 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)   |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.30  |   | Amendment                No. 2 to the Lawrence Road Properties, Ltd. Amended and Restated                Agreement                of Limited Partnership |   | Exhibit                10.8 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.31  |   | Lawrence                Road Properties, Ltd. Amendment No. 3 to the Amended and Restated                Agreement of Limited Partnership                |   | Exhibit                10.5 to Form 10-Q Report dated December 31, 1991(File                No. 0-19217)  |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.32  |   | Loma                Del Norte Limited Partnership Amended and Restated Limited Partnership                Agreement                                      |   | Exhibit                10.2 to Form 10-Q Report dated September 29, 1991(File                No. 0-19217) |
|   |   |                                                                                                                                                     |   |                                                                                                      |
| 10.33  |   | Long                Reach Associates Limited Partnership Sixth Amended and Restated Agreement                of Limited Partnership                      |   | Exhibit                10.15 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)   |

----

|   |   | Exhibit                                                                                                                                                                                             |   | Incorporated                byReference                to                                                  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.34  |   | Mirador                del Toa Limited Partnership Amended and Restated Agreement of Limited                Partnership                                                                             |   | Exhibit                10.16 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.35  |   | Amendment                No. 1 to the Mirador del Toa Limited Partnership Amended and Restated                Agreement of Limited Partnership                                                      |   | Exhibit                10.17 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.36  |   | Moore                Haven Commons, Ltd. Amended and Restated Agreement of Limited                Partnership                                                                                       |   | Exhibit                10.9 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.37  |   | NP-89                Limited Dividend Housing Association Limited Partnership Second Restated                and Amended Agreement of Limited Partnership                                           |   | Exhibit                10.3 to Form 10-Q Report dated June 29, 1991(File                No. 0-19217)       |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.38  |   | Nash                Hill Associates, Limited Partnership Amended and Restated Agreement                of                Limited Partnership                                                        |   | Exhibit                10.37 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.39  |   | North                Calhoun City, L.P. (A Mississippi Limited Partnership) Amended and                Restated Limited Partnership Agreement and Certificate of Limited                Partnership |   | Exhibit                10.3 to Form 10-Q Report dated September 29, 1991(File                No. 0-19217)  |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.40  |   | Orange                City Plaza, Limited Partnership Amended and Restated Partnership                Agreement                                                                                     |   | Exhibit                10.40 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)    |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.41  |   | Puerta                del Mar Limited Partnership (A Delaware Limited Partnership) Amended                and                Restated Agreement of Limited Partnership                              |   | Exhibit                10.10 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.42  |   | Amendment                No. 2 to the Purvis Heights Properties, L.P. Amended and Restated                Agreement of Limited Partnership                                                          |   | Exhibit                10.11 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.43  |   | Purvis                Heights Properties, L.P. Amendment No. 3 to the Amended and Restated                Agreement of Limited Partnership                                                          |   | Exhibit                10.6 to Form 10-Q Report dated December 31, 1991(File                No. 0-19217)   |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.44  |   | Queen                Lane Investors Amendment No. 1 to Amended and Restated Agreement                and                Certificate of Limited Partnership                                          |   | Exhibit                10.12 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.45  |   | Somerset                Manor, Ltd. Amended and Restated Agreement and Certificate of Limited                Partnership                                                                            |   | Exhibit                10.13 to Form 10-Q Report dated December 30, 1990(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                |   |                                                                                                       |
| 10.46  |   | Sugar                Cane Villas, Ltd. Amended and Restated Agreement of Limited                Partnership                                                                                         |   | Exhibit                10.23 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)    |

----

|   |   | Exhibit                                                                                                                                                                                              |   | Incorporated                byReference                to                                                   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.47  |   | Summerfield                Apartments Limited Partnership Amended and Restated Agreement of                Limited                Partnership                                                        |   | Exhibit                10.47 to Form 10-K Report dated March 30, 1992 (File No.                33-31390)    |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.48  |   | Amendment                No.1 to the Summerfield Apartments Limited Partnership Amended and                Restated Agreement of Limited Partnership                                                 |   | Exhibit                10.48 to Form 10-K Report dated March 30, 1999 (File No.                0-19217)     |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.49  |   | Sydney                Engel Associates Second Amended and Restated Agreement of Limited                Partnership                                                                                   |   | Exhibit                10.4 to Form 10-Q Report dated September 29, 1990 (File No.                33-31390) |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.50  |   | First                Amendment to Second Amended and Restated Agreement of Limited Partnership                of Sydney Engel Associates                                                             |   | Exhibit                10.49 to Form 10-K Report dated March 30, 1997 (File No.                0-19217)     |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.51  |   | Second                Amendment to Second Amended and Restated Agreement of Limited Partnership                of Sydney Engel Associates L.P.                                                       |   | Exhibit                10.50 to Form 10-K Report dated March 30, 1997 (File No.                0-19217)     |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.52  |   | Third                Amendment to Second Amended and Restated Agreement of Limited Partnership                of Sydney Engel Associates L.P.                                                        |   | Exhibit                10.51 to Form 10-K Report dated March 30, 1997 (File No.                0-19217)     |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.53  |   | Fourth                Amendment to Second Amended and Restated Agreement of Limited Partnership                of Sydney Engel Associates L.P.                                                       |   | Exhibit                10.52 to Form 10-K Report dated March 30, 1997 (File No.                0-19217)     |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.54  |   | Union                Valley Associates Limited Partnership Amended and Restated Agreement                and                Certificate of Limited Partnership                                       |   | Exhibit                10.14 to Form 10-Q Report dated December 30, 1990 (File No.                33-31390) |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.55  |   | Walnut                Grove Family, L.P. (A Mississippi Limited Partnership) Amended and                Restated Limited Partnership Agreement and Certificate of Limited                Partnership |   | Exhibit                10.4 to Form 10-Q Report dated September 29, 1991 (File No.                0-19217)  |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.56  |   | Waynesboro                Apartments Limited Partnership Amended and Restated Agreement and                Certificate of Limited Partnership                                                        |   | Exhibit                10.15 to Form 10-Q Report dated December 30, 1990 (File No.                33-31390) |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.57  |   | West                Calhoun City, L.P. (A Mississippi Limited Partnership) Amended and                Restated Limited Partnership Agreement and Certificate of Limited                Partnership   |   | Exhibit                10.5 to Form 10-Q Report dated September 29, 1991 (File No.                0-19217)  |
|   |   |                                                                                                                                                                                                 |   |                                                                                                        |
| 10.58  |   | Westminster                Apartments Limited Partnership Second Amended and Restated Agreement                of                Limited Partnership                                                 |   | Exhibit                10.53 to Form 10-K Report dated March 30, 1992 (File No.                33-31390)    |

----

|   |   | Exhibit                                                                                                                                                                                        |   | Incorporated                byReference                to                                               |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| *31.1  |   | Rule                13a-14(a)/15d-14(a) Certification of Chief Executive                Officer                                                                                                |   |                                                                                                    |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| *31.2  |   | Rule                13a-14(a)/15d-14(a) Certification of Chief Financial                Officer.                                                                                               |   |                                                                                                    |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| *32.1  |   | Section                1350 Certification of Chief Executive Officer.                                                                                                                          |   |                                                                                                    |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| *32.2  |   | Section                1350 Certification of Chief FinancialOfficer.                                                                                                                           |   |                                                                                                    |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.1   |   | Pages                20 through 31, 44 through 71 and 78 through 80 of Prospectus filed                pursuant to Rule 424(b)(3) under Securities Act of 1933                                 |   | Exhibit                28.0 to Form 10-K Report dated March 30, 1990(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.2   |   | Pages                14 through 19 of Prospectus filed pursuant to Rule 424(b)(3) under                Securities Act of 1933                                                                  |   | Exhibit                28.1 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.3   |   | Supplement                No. 1 dated June 6, 1990 to Prospectus                                                                                                                               |   | Exhibit                28.2 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.4   |   | Supplement                No. 2 dated November 21, 1990 to Prospectus                                                                                                                          |   | Exhibit                28.3 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.5   |   | Supplement                No. 3 dated December 20, 1990 to Prospectus                                                                                                                          |   | Exhibit                28.4 to Form 10-K Report dated March 30, 1991(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.6   |   | Supplement                No. 4 dated October 30, 1991 to Prospectus                                                                                                                           |   | Exhibit                28.5 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.7   |   | Supplement                No. 5 dated December 26, 1991 to Prospectus                                                                                                                          |   | Exhibit                28.6 to Form 10-K Report dated March 30, 1992(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.8   |   | Supplement                No. 6 dated January 15, 1992 to Prospectus                                                                                                                           |   | Exhibit                28.7 to Form 10-K Report dated March 30, 1990(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.9   |   | Report                of Independent Registered Public Accounting Firm of Carrington L.D.H.A.                Limited Partnership as of and for the year ended December 31,                2004 |   | Exhibit                99.9 to Form 10-K Report dated March 30, 2005(File                No. 33-31390)  |
|   |   |                                                                                                                                                                                           |   |                                                                                                    |
| 99.10  |   | Independent                Auditor’s Report of Ellinwood Heights Apartments, L.P. as of and for the                years ended December 31, 2004 and 2003                                |   | Exhibit                99.10 to Form 10-K Report dated March 30, 2005(File                No. 33-31390) |

----

|   |   | Exhibit                                                                                                                                                                                                                                      |   | Incorporated                byReference                to                                               |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                         |   |                                                                                                    |
| 99.11  |   | Independent                Auditors’ Report of NP-89 Limited Dividend Housing Association Limited                Partnership as of and for the year ended December 31, 2004                                                            |   | Exhibit                99.11 to Form 10-K Report dated March 30, 2005(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                                         |   |                                                                                                    |
| 99.12  |   | Audited                Financial Statements of NP-89 Limited Dividend Housing Association                Limited                Partnership as of and for the year ended December 31, 2005                                                   |   | Exhibit                99.12 to Form 10-K Report dated March 30, 2006(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                                         |   |                                                                                                    |
| 99.13  |   | Report                of Independent Registered Public Accounting Firm of NP-89 Limited                Dividend                Housing Association Limited Partnership as of and for the year ended                December 31, 2005         |   | Exhibit                99.13 to Form 10-K Report dated March 30, 2006(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                                         |   |                                                                                                    |
| 99.14  |   | Audited                Financial Statements of NP-89 Limited Dividend Housing Association                Limited                Partnership as of and for the year ended December 31, 2006                                                   |   | Exhibit                99.14 to Form 10-K Report dated March 30, 2007(File                No. 33-31390) |
|   |   |                                                                                                                                                                                                                                         |   |                                                                                                    |
| *99.15 |   | Report                  of Independent Registered Public Accounting Firm of NP-89 Limited                  Dividend Housing Association Limited Partnership as of and for                  the year                  ended December 31, 2007 |   |                                                                                                    |

**(b)      **
**Exhibits**

**(c)      **
**Financial      Statement Schedules**

----

**SIGNATURES**

|                                | **AMERICAN                TAX CREDIT PROPERTIES III L.P.** |
|-------------------------------------|------------------------------------------------------------|
|                                | (a                Delaware limited partnership)            |
|                                |                                                       |   |
|                                | By:                                                        | Richman                Tax Credit Properties III L.P., |
|                                |                                                       | General                Partner |
|                                |                                                       |   |
|                                | By:                                                        | Richman                Housing Credits Inc., |
|                                |                                                       | general                partner |
|                                |                                                       |   |
| Dated:                July 10, 2008 | /s/              David Salzman                             |
|                                | David              Salzman                                 |
|                                | Chief              Executive Officer                       |
|                                |                                                       |   |
|                                |                                                       |   |
| Dated:                July 10, 2008 | /s/              Neal Ludeke                               |
|                                | Neal              Ludeke                                   |
|                                | Chief              Financial Officer                       |

| Signature                               |   | Title                                                 |   | Date                         |
|-----------------------------------------|--------|-------------------------------------------------------|--------|------------------------------|
|                                    |   |                                                  |   |                         |
|                                    |   |                                                  |   |                         |
| /s/                David Salzman        |   | Chief                Executive Officer of the general |   | July                10, 2008 |
| (David                Salzman)          |   | partner                of the General Partner         |   |                         |
|                                    |   |                                                  |   |                         |
| /s/                Neal Ludeke          |   | Chief                Financial Officer of the general |   | July                10, 2008 |
| (Neal                Ludeke)            |   | partner                of the General Partner         |   |                         |
|                                    |   |                                                  |   |                         |
| /s/                Richard Paul Richman |   | Director                of the general partner of the |   | July                10, 2008 |
| (Richard                Paul Richman)   |   | General                Partner                        |   |                         |

----