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

                                    FORM 10-Q




(Mark One)


[X]    QUARTERLY  REPORT  PURSUANT  TO  SECTION  13 OR 15(d)  OF  THE SECURITIES
       EXCHANGE ACT OF 1934


For the quarterly period ended September 15, 2005


                                       OR


[  ]   TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR 15(d)  OF THE SECURITIES
       EXCHANGE ACT OF 1934



                         COMMISSION FILE NUMBER 0-17015

                          LIBERTY TAX CREDIT PLUS L.P.
             (Exact name of registrant as specified in its charter)



                     Delaware                                   13-3446500
---------------------------------------------------        --------------------
 (State or other jurisdiction of incorporation or            (I.R.S. Employer
                  organization)                             Identification No.)

      625 Madison Avenue, New York, New York                      10022
---------------------------------------------------        --------------------
     (Address of principal executive offices)                   (Zip Code)



Registrant's telephone number, including area code (212) 317-5700


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


       Indicate by check mark whether the registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2).  Yes [ ]  No [X]



<PAGE>

                         PART I - Financial Information

Item 1. Financial Statements

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                           September 15,      March 15,
                                                                               2005              2005
                                                                           -------------    -------------
                                                                            (Unaudited)       (Audited)
<S>                                                                        <C>              <C>
                                             ASSETS

Operating Assets

   Property and equipment, at cost, net of accumulated depreciation of
     $82,133,307 and $96,840,139, respectively                             $  68,554,123    $  86,316,389
   Cash and cash equivalents                                                   6,701,384        4,335,171
   Cash held in escrow                                                         9,712,473       10,529,679
   Accounts receivable - tenants                                                 382,311          761,215
   Deferred costs, net of accumulated amortization of $1,258,585 and
     $1,662,029, respectively                                                  1,542,539        1,922,580
   Other assets                                                                2,148,216        1,230,423
                                                                           -------------    -------------

Total operating assets                                                        89,041,046      105,095,457
                                                                           -------------    -------------

Assets from discontinued operations (Note 4)
   Property and equipment held for sale, net of accumulated depreciation
     of $17,850,576 and $13,195,220, respectively                             14,187,533       11,193,351
   Net assets held for sale                                                    1,831,072        4,452,896
                                                                           -------------    -------------
Total assets from discontinued operations                                     16,018,605       15,646,247
                                                                           -------------    -------------

Total assets                                                               $ 105,059,651    $ 120,741,704
                                                                           =============    =============

                               LIABILITIES AND PARTNERS' DEFICIT

Operating Liabilities

   Mortgage notes payable                                                  $  78,032,087    $  97,203,309
   Accounts payable                                                            4,828,876        2,436,882
   Accrued interest payable                                                    8,365,233        7,885,329
   Security deposits payable                                                     533,855          624,852
   Due to local general partners and affiliates                               20,000,790       21,080,176
   Due to general partners and affiliates                                      7,898,760        8,261,783
   Due to selling partners                                                             0        1,412,272
                                                                           -------------    -------------

Total operating liabilities                                                  119,659,601      138,904,603
                                                                           -------------    -------------

Liabilities from discontinued operations (Note 4)
   Mortgage notes payable of assets held for sale                             18,254,102       12,032,637
   Net  liabilities held for sale (including minority interest)                4,177,348        2,076,114
                                                                           -------------    -------------
Total liabilities from discontinued operations                                22,431,450       14,108,751
                                                                           -------------    -------------

Minority interests                                                              (529,068)        (321,605)
                                                                           -------------    -------------

Commitments and contingencies (Note 5)

Partners' deficit:
   Limited partners (15,987.5 BACs issued and outstanding)                   (35,414,889)     (30,908,125)
   General partners                                                           (1,087,443)      (1,041,920)
                                                                           -------------    -------------


Total partners' deficit                                                      (36,502,332)     (31,950,045)
                                                                           -------------    -------------

Total liabilities and partners' deficit                                    $ 105,059,651    $ 120,741,704
                                                                           =============    =============
</TABLE>



          See accompanying notes to consolidated financial statements.

                                       2
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                 Three Months Ended               Six Months Ended
                                                                   September 15,                    September 15,
                                                            ----------------------------    ----------------------------
                                                                2005            2004*           2005            2004*
                                                            ------------    ------------    ------------    ------------
<S>                                                         <C>             <C>             <C>             <C>
Operations:

Revenues
Rental income                                               $  5,421,369    $  5,426,650    $ 10,881,008    $ 10,656,182
Other                                                            102,948         213,718         191,053         385,137
                                                            ------------    ------------    ------------    ------------
                                                               5,524,317       5,640,368      11,072,061      11,041,319
                                                            ------------    ------------    ------------    ------------

Expenses
General and administrative                                       782,384         889,119       1,805,867       1,887,353
General and administrative-related parties (Note 2)              530,552         552,499         993,488       1,012,723
Repairs and maintenance                                        1,517,540       1,403,460       3,076,910       2,776,144
Operating and other                                              686,492         795,909       1,744,084       1,735,628
Taxes                                                            226,810         171,520         461,795         361,355
Insurance                                                        304,114         321,271         638,231         627,430
Financial                                                      1,420,747       1,577,746       2,927,039       3,241,583
Depreciation and amortization                                  1,309,260       1,464,354       2,617,836       2,609,427
                                                            ------------    ------------    ------------    ------------

Total expenses from operations                                 6,777,899       7,175,878      14,265,250      14,251,643
                                                            ------------    ------------    ------------    ------------

Loss from operations before minority interest                 (1,253,582)     (1,535,510)     (3,193,189)     (3,210,324)

Minority interest in loss of subsidiaries from operations          4,839           6,463          11,610           9,099
                                                            ------------    ------------    ------------    ------------

Loss from operations                                          (1,248,743)     (1,529,047)     (3,181,579)     (3,201,225)

Discontinued Operations:
(Loss) income from discontinued operations (including
  gain (loss) on sale of properties) (Note 4)                 (1,719,630)       (330,928)        567,413       2,336,136
                                                            ------------    ------------    ------------    ------------
Net loss                                                    $ (2,968,373)   $ (1,859,975)   $ (2,614,166)   $   (865,089)
                                                            ============    ============    ============    ============

Loss from operations - limited partners                     $ (1,236,255)   $ (1,513,757)   $ (3,149,763)   $ (3,169,213)
(Loss) income from discontinued operations (including
  gain (loss) on sale of properties) - limited partners       (1,702,434)       (327,619)        561,739       2,312,775
                                                            ------------    ------------    ------------    ------------
Net loss - limited partners                                 $ (2,938,689)   $ (1,841,376)   $ (2,588,024)   $   (856,438)
                                                            ============    ============    ============    ============

Number of BACs outstanding                                      15,987.5        15,987.5        15,987.5        15,987.5
                                                            ============    ============    ============    ============

Loss from operations per BAC                                $     (77.33)   $     (94.69)   $    (197.01)   $    (198.23)
(Loss) income from discontinued operations per BAC               (106.48)         (20.49)          35.13          144.66
                                                            ------------    ------------    ------------    ------------

Net loss per BAC                                            $    (183.81)   $    (115.18)   $    (161.88)   $     (53.57)
                                                            ============    ============    ============    ============
</TABLE>

 *  Reclassified for comparative purposes

          See accompanying notes to consolidated financial statements.

                                       3
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
             Consolidated Statement of Changes in Partners' Deficit
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                          Limited         General
                                            Total         Partners        Partner
                                        ------------    ------------    ------------
<S>                                      <C>             <C>             <C>
Partners' deficit - March 16, 2005       $(31,950,045)   $(30,908,125)   $ (1,041,920)

Net loss                                   (2,614,166)     (2,588,024)        (26,142)

Distributions                              (1,938,121)     (1,918,740)        (19,381)
                                         ------------    ------------    ------------

Partners' deficit - September 15, 2005   $(36,502,332)   $(35,414,889)   $ (1,087,443)
                                         ============    ============    ============
</TABLE>



           See accompanying notes to consolidated financial statements

                                       4
<PAGE>


                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (decrease) in Cash and Cash Equivalents
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                                     Six Months Ended
                                                                                                       September 15,
                                                                                                --------------------------
                                                                                                   2005            2004*
                                                                                                -----------    -----------
<S>                                                                                             <C>            <C>
Net loss                                                                                        $(2,614,166)   $  (865,089)

Adjustments to  reconcile  net loss to net cash (used in) provided by operating
  activities:
  Gain on sale of properties                                                                     (4,513,348)       (10,130)
  Depreciation and amortization                                                                   3,396,495      3,935,201
  Loss on impairment of fixed assets                                                              2,710,000              0
  Minority interest in loss (income) of subsidiaries                                                271,081     (3,521,296)
  Decrease in accounts receivable - tenants                                                          71,042        438,698
  Increase in other assets                                                                         (964,681)      (513,808)
  Increase in accounts payable and other liabilities                                              2,436,190        928,232
  (Decrease) increase in due to general partners and affiliates                                    (155,023)       826,814
  Increase in cash held in escrow                                                                (1,434,502)      (436,956)
                                                                                                -----------    -----------

Net cash (used in) provided by operating activities                                                (796,912)       781,666
                                                                                                -----------    -----------

Cash flows from investing activities:

  Decrease in cash held in escrow                                                                 1,188,263        334,169
  Proceeds from sale of investments                                                               7,884,459              0
  Costs paid relating to sale of properties                                                        (222,016)             0
  Improvements to property and equipment                                                           (445,371)      (897,955)
                                                                                                -----------    -----------

Net cash provided by (used in) investing activities                                               8,405,335       (563,786)
                                                                                                -----------    -----------

Cash flows from financing activities:

  Repayments of mortgage notes                                                                   (3,887,653)    (1,301,287)
  Increase in due to local general partners and affiliates                                          769,309        791,391
  Decrease in due to local general partners and affiliates                                         (278,008)      (135,016)
  Decrease in capitalization of consolidated subsidiaries attributable to minority interest        (144,867)      (100,019)
  Distributions                                                                                  (1,938,121)             0
                                                                                                -----------    -----------

  Net cash used in financing activities                                                          (5,479,340)      (744,931)
                                                                                                -----------    -----------

  Net increase (decrease) in cash and cash equivalents                                            2,129,083       (527,051)

  Cash and cash equivalents at beginning of period                                                4,779,438      5,224,728
                                                                                                -----------    -----------

  Cash and cash equivalents at end of period                                                    $ 6,908,521    $ 4,697,677
                                                                                                ===========    ===========

  Summarized below are the components of the gain on sale of properties:

  Decrease in property and equipment, net of accumulated depreciation                           $ 9,161,412    $ 6,024,442
  Decrease in mortgage notes payable                                                             (9,062,104)    (7,330,000)
  Decrease in due to general partners and affiliates                                                (40,000)       (28,333)
  Decrease in due to local general partner and affiliates                                          (664,051)             0
  Decrease in cash held in escrow                                                                 3,943,256        367,959
  Decrease in rents receivable                                                                       20,699         18,405
  Decrease in other assets                                                                           98,174              0
  Decrease in accounts payable, accrued expenses and other liabilities                             (104,027)    (1,891,550)
  Decrease in deferred costs                                                                         66,349        314,170
  Decrease in capitalization of consolidated  subsidiaries  attributable to minority interest      (270,613)             0
</TABLE>


 See Note 4 for cash flows from discontinued operations.

* Reclassified for comparative purposes.

           See accompanying notes to consolidated financial statements


                                       5
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2005
                                   (Unaudited)


Note 1 - General

The  consolidated  financial  statements for the six months ended  September 15,
2005 and 2004,  include  the  accounts  of  Liberty  Tax Credit  Plus L.P.  (the
"Partnership")  and  23 and  27  subsidiary  partnerships  (each  a  "subsidiary
partnership" or "Local Partnership"),  respectively, in which the Partnership is
a  limited  partner.  Through  the  rights of the  Partnership  and/or a general
partner of the  Partnership (a "General  Partner"),  which General Partner has a
contractual  obligation  to act on behalf  of the  Partnership,  to  remove  the
general partners of each subsidiary  partnership (the "Local General  Partners")
and to approve certain major operating and financial decisions,  the Partnership
has a  controlling  financial  interest  in  the  subsidiary  partnerships.  All
intercompany  accounts and transactions  with the subsidiary  partnerships  have
been eliminated in consolidation.

For financial  reporting  purposes,  the  Partnership's  fiscal  quarter ends on
September 15. All subsidiary  partnerships  have fiscal quarters ending June 30.
Accounts of the  subsidiary  partnerships  have been  adjusted for  intercompany
transactions from July 1 through September 15. The Partnership's quarter ends on
September 15 in order to allow  adequate  time for the  subsidiary  partnerships
financial  statements to be prepared and consolidated.  The books and records of
the Partnership are maintained on the accrual basis of accounting, in accordance
with accounting  principles  generally  accepted in the United States of America
("GAAP").

In the opinion of the General  Partners,  the accompanying  unaudited  financial
statements  contain  all  adjustments   (consisting  only  of  normal  recurring
adjustments)   necessary  to  present  fairly  the  financial  position  of  the
Partnership  as of  September  15,  2005 and  March 15,  2005,  the  results  of
operations  for the three and six months ended  September  15, 2005 and 2004 and
cash flows for the six months ended  September 15, 2005 and 2004.  However,  the
operating results and cash flows for the six months ended September 15, 2005 may
not be indicative of the results for the year.

Certain  information  and  note  disclosures  which  are  normally  included  in
financial  statements  prepared  in  accordance  with GAAP have been  omitted or
condensed. These consolidated financial statements should be read in conjunction
with the financial  statements and notes thereto  included in the  Partnership's
Annual Report on Form 10-K for the period ended March 15, 2005.

Increases  (decreases)  in  the  capitalization  of  consolidated   subsidiaries
attributable  to  minority  interest  arise  from  cash  contributions  and cash
distributions to the minority interest partners.

The  Partnership's  investment in each  subsidiary  partnership  is equal to the
respective  subsidiary  partnership's  partners'  equity less minority  interest
capital,  if any.  Losses  attributable  to minority  interests which exceed the
minority interests' investments in the subsidiary partnerships have been charged
to the Partnership.  Such losses aggregate approximately $1,300,000 for both the
three and six month periods  ended  September 15, 2005 and $0 for both the three
and six month periods ended September 15, 2004. In consolidation, all subsidiary
partnership losses are included in the Partnership's  capital account except for
losses allocated to minority interest capital.


Note 2 - Related Party Transactions

An affiliate of the General  Partners  has a 1% interest,  as a special  limited
partner,  in each of the  subsidiary  partnerships.  An affiliate of the General
Partners also has a minority interest in certain subsidiary partnerships.

The costs  incurred to related  parties  from  operations  for the three and six
months ended September 15, 2005 and 2004 were as follows:
<TABLE>
<CAPTION>
                                                            Three Months Ended        Six Months Ended
                                                              September 15,             September 15,
                                                         -----------------------   -----------------------
                                                            2005         2004*        2005         2004*
                                                         ----------   ----------   ----------   ----------
<S>                                                      <C>          <C>          <C>          <C>
Partnership management fees (a)                          $  222,750   $  269,250   $  448,000   $  531,000
Expense reimbursement (b)                                   139,776       53,930      209,069       84,244
Local administrative fee (d)                                  4,750        4,875       10,500        9,750
                                                         ----------   ----------   ----------   ----------
Total general and administrative-General Partners           367,276      328,055      667,569      624,994
                                                         ----------   ----------   ----------   ----------
Property management fees incurred to affiliates of the
  local general partners (c)                                163,276      224,444      325,919      387,729
                                                         ----------   ----------   ----------   ----------
Total general and administrative-related parties         $  530,552   $  552,499   $  993,488   $1,012,723
                                                         ==========   ==========   ==========   ==========
</TABLE>
*   Reclassified for comparative purposes.
                                       6
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2005
                                   (Unaudited)


The costs incurred to related parties from discontinued operations for the three
and six months ended September 15, 2005 and 2004 were as follows:
<TABLE>
<CAPTION>
                                                                       Three Months Ended     Six Months Ended
                                                                          September 15,         September 15,
                                                                       -------------------   -------------------
                                                                         2005       2004       2005       2004
                                                                       --------   --------   --------   --------
<S>                                                                    <C>        <C>        <C>        <C>
Property management fees incurred to affiliates of the General
  Partners (c)                                                         $      0   $ 23,653   $      0   $ 47,306
Local administrative fee (d)                                              6,250      8,125     12,500     16,250
                                                                       --------   --------   --------   --------
Total general and administrative-General Partners                         6,250     31,778     12,500     63,556
                                                                       --------   --------   --------   --------
Property management fees incurred to affiliates of the local general
  partners (c)                                                           59,022     68,773    144,331    161,153
                                                                       --------   --------   --------   --------
Total general and administrative-related parties                       $ 65,272   $100,551   $156,831   $224,709
                                                                       ========   ========   ========   ========
</TABLE>


(a) The General  Partners are entitled to receive a partnership  management fee,
after payment of all Partnership expenses,  which together with the local annual
administrative  fees  will not  exceed a maximum  of 0.5% per annum of  invested
assets (as  defined in the  Partnership's  Amended  and  Restated  Agreement  of
Limited  Partnership),  for  administering  the affairs of the Partnership.  The
partnership  management  fee,  subject  to the  foregoing  limitation,  will  be
determined  by the General  Partners in their sole  discretion  based upon their
review of the Partnership's investments. Partnership management fees owed to the
General  Partners  amounting to  approximately  $7,709,000 and  $7,811,000  were
accrued and unpaid as of September 15, 2005 and March 15, 2005, respectively.

(b) The  Partnership  reimburses the General  Partners and their  affiliates for
actual Partnership operating expenses incurred by the General Partners and their
affiliates on the  Partnership's  behalf.  The amount of reimbursement  from the
Partnership is limited by the provisions of the Partnership  Agreement.  Another
affiliate of the General Partners performs asset monitoring for the Partnership.
These   services   include  site  visits  and   evaluations  of  the  subsidiary
partnerships' performance. Expense reimbursements and asset monitoring fees owed
to Related Credit Properties L.P., a General Partner, amounting to approximately
$70,000 and $35,000 were  accrued and unpaid as of September  15, 2005 and March
15, 2005, respectively.

The General Partners have allowed for the accrual without payment of the amounts
set forth in (a) and (b) but are under no obligation to continue to do so.

(c)  Property  management  fees  incurred  by  the  subsidiary  partnerships  in
operations  amounted to $359,985  and $426,227 and $750,142 and $893,657 for the
three and six months ended September 15, 2005 and 2004,  respectively.  Of these
fees,  $222,298  and  $293,217  and  $470,250  and  $548,882  were  incurred  to
affiliates of the local general partners,  which include $59,022 and $68,773 and
$144,331 and $161,153 of fees relating to discontinued operations.  In addition,
$23,653 and $47,306 was incurred to affiliates  of the General  Partners for the
three and six  months  ended  September  15,  2004,  which is also  included  in
discontinued operations.

(d) Liberty  Associates  III L.P.,  a General  Partner  and the special  limited
partner  of  the  subsidiary  partnerships,  is  entitled  to  receive  a  local
administrative fee of up to $2,500 per year from each subsidiary partnership.


Note 3 - Sale of Properties

The Partnership is currently in the process of disposing of its investments.  As
of September  15, 2005,  the  Partnership  has disposed of 14 of its 31 original
investments.

On  September  15,  2005,  the  Partnership's  Limited  Partnership  Interest in
Bayridge Associates,  L.P. ("Bayridge") was sold to an unaffiliated thirty party
purchaser for $1,125,000,  resulting in a gain of approximately $4,834,000 which
will be recognized in the Partnership's Form 10-Q for the quarter ended December
15, 2005. The sale resulted in the liquidation of Bayridge. As of the sale date,
Bayridge had property and  equipment,  at cost,  of  approximately  $13,203,000,
accumulated  depreciation  of  approximately  $7,142,000  and  mortgage  debt of
approximately $9,641,000.

On July 27, 2005,  the property and the related  assets and  liabilities of Penn
Alto  Associates,  L.P. ("Penn Alto") were sold to an  unaffiliated  third party
purchaser  for  $1,575,000.  During the quarter  ended  September  15, 2005,  in
accordance with SFAS No. 144, the Partnership  deemed the building  impaired and
wrote  it down to its fair  value  which  resulted  in a loss on  impairment  of
$850,000.  The sale will result in a loss of approximately $14,000 which will be
recognized in the  Partnership's  Form 10-Q for the quarter  ended  December 15,
2005.  The sale resulted in the  liquidation  of Penn Alto. As of the sale date,
Penn Alto had property and  equipment,  at cost, of  approximately  $11,106,000,
accumulated  depreciation  of  approximately  $6,199,000  and  mortgage  debt of
approximately $3,383,000.

                                       7
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2005
                                   (Unaudited)


On June 2, 2005,  the  Partnership  sold its  Limited  Partnership  Interest  in
Lancaster  Towers  Associates,  LTD  ("Lancaster")  to an affiliate of the Local
General Partner for a purchase price of $449,750.  During the quarter ended June
15, 2005, in accordance with SFAS No. 144, the  Partnership  deemed the building
impaired  and  wrote  it down to its  fair  value  which  resulted  in a loss on
impairment  of  $1,860,000.  The sale  resulted in a  distribution  to the Local
General Partner of approximately  $271,000.  As of the sale date,  Lancaster had
property  and  equipment,  at cost,  of  approximately  $4,594,000,  accumulated
depreciation  at  approximately  $2,797,000  and mortgage debt of  approximately
$1,605,000.

On April 25, 2005, the Partnership  entered into a redemption  agreement for the
sale of its Limited  Partnership  Interest in Fox Glenn  Investors,  L.P.  ("Fox
Glenn") to the Local General Partner. The sales documents have been executed and
the  Partnership  received  $200,000 and a note  receivable  for  $1,200,000 due
February 9, 2006 that is recorded in other assets. As of September 15, 2005, the
Partnership has recorded the $1,400,000 in accrued  expenses as a deferred gain.
Fox Glenn is awaiting  approval of the sale from the  Department  of Housing and
Urban Development  ("HUD"). No assurances can be given that the HUD will approve
the sale.  Fox Glenn is being held as an asset held for sale as of September 15,
2005.

On March 29, 2005, the property and the related assets and liabilities of Regent
Street  Associates,  L.P. ("Regent  Street") were sold to an unaffiliated  third
party purchaser for the assumption of the outstanding debt,  resulting in a gain
of $1,436,000.  The sale resulted in the liquidation of Regent Street. As of the
sale date,  Regent Street had property and equipment,  at cost, of approximately
$7,655,000,  accumulated  depreciation of approximately  $4,610,000 and mortgage
debt of approximately $3,629,000.

On February 17, 2005, the Partnership's  Limited Partnership Interest in Redwood
Villa Associates  ("Redwood") was sold to an unaffiliated  third party purchaser
for $60,000,  resulting in a gain of approximately $1,761,000. The sale resulted
in the  liquidation  of Redwood.  As of the sale date,  Redwood had property and
equipment,  at cost, of approximately  $5,999,000,  accumulated  depreciation of
approximately $3,525,000 and mortgage debt of approximately $3,746,000.

On January 5, 2005, the property and the related assets and  liabilities of Lund
Hill  Associates,  L.P. ("Lund Hill") were sold to an unaffiliated  thirty party
purchaser for $6,500,000,  resulting in a gain of approximately $1,345,000.  The
sale resulted in the  liquidation  of Lund Hill. As of the sale date,  Lund Hill
had property and equipment,  at cost, of approximately  $6,046,000,  accumulated
depreciation  of  approximately  $2,423,000  and mortgage debt of  approximately
$2,971,000.

On March 31, 2004, the Partnership's Limited Partnership Interest in Walnut Park
Plaza  ("Walnut") was sold to the Local General  Partner for a purchase price of
$1 plus the  assumption  of all the  related  debt which  totaled  approximately
$7,700,000   resulting  in  a  general  partner  contribution  of  approximately
$2,589,000  and a gain  of  approximately  $10,000.  The  sale  resulted  in the
liquidation of Walnut.  As of the sale date,  Walnut had property and equipment,
at cost, of approximately $10,957,000, accumulated depreciation of approximately
$4,448,000 and mortgage debt of approximately $7,330,000.


Note 4 - Discontinued Operations

The following table summarizes the financial  position of the Local Partnerships
that are classified as  discontinued  operations  because the  respective  Local
Partnerships  were classified as assets held for sale. As of September 15, 2005,
Bayridge, Fox Glenn, Lancaster,  Lund Hill, Penn Alto, Redwood and Regent Street
were  classified  as  discontinued  operations  in  the  Consolidated  Financial
Statements.  As of March 15,  2005,  Lancaster,  Lund Hill,  Redwood  and Regent
Street were reclassified as a discontinued operation on the Consolidated Balance
Sheets.

                                       8
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2005
                                   (Unaudited)


Consolidated Balance Sheets of Discontinued Operations:
<TABLE>
<CAPTION>
                                                   September 15,   March 15,
                                                       2005           2005
                                                    -----------   -----------
<S>                                                 <C>           <C>
Assets
  Property and equipment, net of accumulated
    depreciation of $17,850,576 and $13,195,220,
    respectively                                    $14,187,533   $11,193,351
  Cash and cash equivalents                             207,137       444,267
  Cash held in escrow                                   971,767     3,851,578
  Deferred costs, net of accumulated amortization
    of $478,519 and $182,368, respectively              327,429        68,189
  Other assets                                          324,739        88,862
                                                    -----------   -----------
Total assets                                        $16,018,605   $15,646,247
                                                    ===========   ===========

Liabilities
  Mortgage notes payable                            $18,254,102   $12,032,637
  Due to selling partners                             1,412,272             0
  Accounts payable and other liabilities                723,529     1,172,267
  Due to local general partners and affiliates        1,639,353       732,717
  Due to general partners and affiliates                217,500        49,500
  Minority interest                                     184,694       121,630
                                                    -----------   -----------
Total liabilities                                   $22,431,450   $14,108,751
                                                    ===========   ===========
</TABLE>


The  following  table   summarizes  the  results  of  operations  of  the  Local
Partnerships that are classified as discontinued  operations.  For the three and
six months ended September 15, 2005, Fox Glenn, which was classified as an asset
held for sale, and Bayridge, Lancaster, Lund Hill, Penn Alto, Redwood and Regent
Street,  which were sold during the year,  were all  classified as  discontinued
operations  on the  Consolidated  Financial  Statements.  For the  three and six
months ended September 15, 2004 and in order to present  comparable  results for
the  three and six  months  ended  September  15,  2005,  Bayridge,  Fox  Glenn,
Lancaster,  Lund Hill, Penn Alto,  Redwood and Regent Street were all classified
as discontinued  operations.  In addition,  Autumn Park, Bolton,  Tanglewood and
Walnut,  which  were  sold  during  the year  ended  March  15,  2005,  were all
classified as discontinued operations on the Consolidated Financial Statements.

                                       9
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2005
                                   (Unaudited)


Consolidated Statements of Discontinued Operations:
<TABLE>
<CAPTION>
                                                                           Three Months Ended            Six Months Ended
                                                                             September 15,                 September 15,
                                                                       --------------------------    --------------------------
                                                                          2005           2004            2005           2004
                                                                       -----------    -----------    -----------    -----------
<S>                                                                    <C>            <C>            <C>            <C>
Revenues:

Rental income                                                          $ 1,073,895    $ 2,473,992    $ 2,343,799    $ 5,194,822
Other                                                                       79,571         76,270         96,820        167,618
Gain (loss) on sale of properties                                          (30,840)        20,446      4,513,348         10,130
                                                                       -----------    -----------    -----------    -----------
Total revenue                                                            1,122,626      2,570,708      6,953,967      5,372,570
                                                                       -----------    -----------    -----------    -----------

Expenses:

General and administrative                                                 139,549        441,281        405,796        893,288
General and administrative-related parties (Note 2)                         65,272        100,551        156,831        224,709
Repairs and maintenance                                                    304,830        492,310        604,558      1,172,022
Operating                                                                  176,093        286,788        390,365        753,452
Taxes                                                                       99,780        172,550        186,338        356,946
Insurance                                                                   46,347        156,736        125,686        304,127
Interest                                                                   380,341        656,175        745,630      1,518,313
Depreciation and amortization                                              325,002        596,213        778,659      1,325,774
Loss on impairment of fixed assets                                         850,000              0      2,710,000              0
                                                                       -----------    -----------    -----------    -----------

Total expenses                                                           2,387,214      2,902,604      6,103,863      6,548,631
                                                                       -----------    -----------    -----------    -----------

(Loss) income before minority interest                                  (1,264,588)      (331,896)       850,104     (1,176,061)
Minority interest in (income) loss of subsidiaries from discontinued
  operations                                                              (455,042)           968       (282,691)     3,512,197
                                                                       -----------    -----------    -----------    -----------
Net (loss) income from discontinued operations (including gain
  (loss) on sale of properties)                                        $(1,719,630)   $  (330,928)   $   567,413    $ 2,336,136
                                                                       ===========    ===========    ===========    ===========

(Loss) income - limited partners from discontinued operations
  (including gain (loss) on sale of properties)                        $(1,702,434)   $  (327,619)   $   561,739    $ 2,312,775
                                                                       ===========    ===========    ===========    ===========

Number of BACs outstanding                                                15,987.5       15,987.5       15,987.5       15,987.5
                                                                       ===========    ===========    ===========    ===========

(Loss) income from discontinued operations (including gain (loss)
  on sale of properties) per BAC                                       $   (106.48)   $    (20.49)   $     35.13    $    144.66
                                                                       ===========    ===========    ===========    ===========

<CAPTION>

                                                                                          Six Months Ended
                                                                                            September 15,
                                                                                      --------------------------
                                                                                         2005           2004
                                                                                      -----------    -----------
<S>                                                                                   <C>            <C>
 Cash flows from Discontinued Operations:

 Net cash used in operating activities                                                $  (441,820)   $(2,752,938)
                                                                                      -----------    -----------
 Net cash provided by investing activities                                            $ 6,766,843    $ 1,917,501
                                                                                      -----------    -----------
 Net cash used in financing activities                                                $(3,047,782)   $  (251,549)
                                                                                      -----------    -----------
</TABLE>

                                       10
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2005
                                   (Unaudited)



Note 5 - Commitments and Contingencies

a)  Uninsured Cash and Cash Equivalents

The  Partnership  maintains  its cash and cash  equivalents  in  various  banks.
Accounts  at  each  bank  are  guaranteed  by  the  Federal  Deposit   Insurance
Corporation (FDIC) up to $100,000.

b)  Cash Distributions

Cash distributions from the Local Partnerships to the Partnership are restricted
by the  provisions of the  respective  Local  Partnership  agreements and or the
Department of Housing and Urban Development ("HUD"). Such cash distributions are
typically made from surplus cash flow.

c)  Tax Credits

A portion of the low income housing tax credits ("Tax Credits") could be subject
to  recapture  in  future  years  if (i) a  Local  Partnership  ceases  to  meet
qualification  requirements,  or (ii) if there is a  decrease  in the  qualified
basis of the Local Partnership  property or (iii) if there is a reduction in the
Local Partnership interest in the property at any time during the 15-year period
(the  "Compliance  Period")  commencing  at the  beginning  of the  period  that
entitles qualified BACsholders to Tax Credits, generally ten years from the date
of investment or, if later, the date the property is leased to qualified tenants
("Tax Credit  Period").  As of December 31, 2003, the Tax Credit Period for each
Local Partnership had expired.

d)  Other

The  Partnership  is subject to the risks  incident to potential  losses arising
from the management and ownership of improved real estate.  The  Partnership can
also be affected by poor economic conditions generally, however no more than 24%
of the  properties are located in any single state.  There are also  substantial
risks associated with owning properties  receiving  government  assistance,  for
example the possibility that Congress may not appropriate funds to enable HUD to
make rental assistance payments. HUD also restricts annual cash distributions to
partners  based on  operating  results and a  percentage  of the owners'  equity
contribution.  The  Partnership  cannot  sell  or  substantially  liquidate  its
investments  in  subsidiary  partnerships  during  the period  that the  subsidy
agreements are in existence, without HUD's approval.  Furthermore, there may not
be market demand for apartments at full market rents when the rental  assistance
contracts expire.


Note 6 - New Accounting Pronouncements

In June 2005, the Financial Accounting Standards Board ("FASB") issued Statement
of  Financial  Accounting  Standards  No.  154,  Accounting  Changes  and  Error
Corrections ("FAS 154"). FAS 154 replaces APB Opinion No. 20, Accounting Changes
and FAS No. 3, Reporting Accounting Changes in Interim Financial Statements. FAS
154  requires  that a  voluntary  change  in  accounting  principle  be  applied
retrospectively  with all prior period financial statements presented on the new
accounting  principle.  FAS  154  also  requires  that a  change  in  method  of
depreciating  or  amortizing a long-lived  nonfinancial  asset be accounted  for
prospectively  as a change in estimate,  and  correction of errors in previously
issued financial statements should be termed a restatement. FAS 154 is effective
for accounting  changes and correction of errors made in fiscal years  beginning
after December 15, 2005. The Partnership does not expect the adoption of FAS 154
to  have  a  material  impact  on  the  Partnership's   consolidated   financial
statements.

In June 2005,  the FASB issued  Emerging  Issues Task Force  ("EITF")  No. 04-5,
Determining  Whether a General  Partner,  or the  General  Partners  as a Group,
Controls a Limited  Partnership or Similar Entity When the Limited Partners Have
Certain  Rights.  EITF No. 04-5 replaces  counterpart  requirements in SOP 78-9,
which provides  guidance on accounting for  investments in real-estate  ventures
and limited  partners.  Under EITF No. 04-5, the general partner's control would
be overcome if the limited partners have either "kick-out rights" - the right to
dissolve or liquidate the  partnership or otherwise  remove the general  partner
"without cause" or participating  rights - the right to effectively  participate
in  significant  decisions  made in the  ordinary  course  of the  partnership's
business.  The kick-out rights and the participating  rights must be substantive
in order to overcome the general partner's control. EITF 04-5 is effective after
June 29, 2005. The Partnership does not expect the adoption of EITF 05-4 to have
a material effect on the consolidated financial statements.

                                       11
<PAGE>


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

Liquidity and Capital Resources
-------------------------------

The  Partnership's  capital has been  invested in 31 Local  Partnerships.  As of
September 15, 2005, the  properties  and the related  assets and  liabilities of
nine Local  Partnerships  and the  limited  partnership  interest  in five Local
Partnerships   were  sold.  For  a  discussion  of  these  sales  of  the  Local
Partnerships, see Note 3 to the financial statements.

Short-Term

The  Partnership's  primary  sources  of funds  included:  (i)  working  capital
reserves;  (ii)  interest  earned on the working  capital  reserves;  (iii) cash
distributions from operations of the Local Partnerships; and (iv) sales proceeds
and  distributions.  Such funds,  although  minimal,  are  available to meet the
obligations of the  Partnership.  During the six months ended September 15, 2005
and 2004,  distributions from operations of the Local  Partnerships  amounted to
approximately $68,000 and $113,000, respectively.  Additionally,  during the six
months ended September 15, 2005 and 2004, the Partnership received approximately
$446,000 and $325,000 distributions of proceeds from sales.

For the six months ended  September 15, 2005,  cash and cash  equivalents of the
Partnership and its  consolidated  Local  Partnerships  increased  approximately
$2,129,000.  This increase is  attributable to a decrease in cash held in escrow
relating to investing activities ($1,188,000), proceeds from sale of investments
($7,884,000)  and a net increase in due to local general partners and affiliates
($491,000)  which  exceeded  net cash used in operating  activities  ($797,000),
improvements to property and equipment  ($445,000),  costs paid relating to sale
of   properties   ($222,000),   repayments  of  mortgage   notes   ($3,888,000),
distributions  ($1,938,000)  and a decrease in  capitalization  of  consolidated
subsidiaries  attributable  to  minority  interest  ($145,000).  Included in the
adjustments  to  reconcile  the  net  loss to net  cash  provided  by  operating
activities is depreciation and amortization of approximately ($3,396,000),  gain
on sale of  properties  ($4,513,000)  and loss on  impairment  of  fixed  assets
($2,710,000).

Total  expenses for the three and six months ended  September 15, 2005 and 2004,
excluding   depreciation   and   amortization,    interest   and   general   and
administrative-related parties, totaled $3,517,340 and $3,581,279 and $7,726,887
and $7,387,910, respectively.

Accounts  payable as of September 15, 2005 and March 15, 2005,  were  $4,828,876
and $2,436,882,  respectively. Accounts payable are short term liabilities which
are expected to be paid from operating cash flows,  working capital  balances at
the Local  Partnership  level,  local  general  partner  advances and in certain
circumstances  advances  from the  Partnership.  Because the  provisions  of the
secondary  loans defer the payment of accrued  interest of the respective  Local
Partnerships,   the   Partnership   believes  it  (and  the   applicable   Local
Partnerships) has sufficient  liquidity and ability to generate cash and to meet
existing and known or reasonably  likely future cash  requirements over both the
short and long term.  Included in accounts  payable as of September 15, 2005 and
March 15,  2005 are  $2,534,603  and  $7,730 of  deferred  revenue  from  sales,
respectively.

Accrued  interest  payable  as of  September  15,  2005 and March  15,  2005 was
$8,365,233 and $7,885,329, respectively. Accrued interest payable represents the
accrued  interest on all mortgage  loans,  which  include  primary and secondary
loans. Certain secondary loans have provisions such that interest is accrued but
not payable  until a future date.  The  Partnership  anticipates  the payment of
accrued  interest on the  secondary  loans  (which  make up the  majority of the
accrued  interest  payable  amount  and which have been  accumulating  since the
Partnership's  investment in the respective Local Partnership) will be made from
future refinancings or sales proceeds of the respective Local  Partnerships.  In
addition, each Local Partnership's mortgage notes are collateralized by the land
and  buildings of the  respective  Local  Partnership,  and are without  further
recourse to the Partnership.

Partnership  management  fees and  expense  reimbursements  owed to the  General
Partners  amounting to approximately  $7,779,000 and $7,846,000 were accrued and
unpaid as of September  15, 2005 and March 15, 2005,  respectively.  Without the
General   Partners'   continued  accrual  without  payment  of  the  partnership
management  fees,  the  Partnership  will  not  be in a  position  to  meet  its
obligations.  The General  Partners have allowed for the accrual without payment
of a portion of the  partnership  management fees but are under no obligation to
continue to do so.

A  working  capital  reserve  of  approximately  $4,989,000  remained  unused at
September 15, 2005. On April 15, 2005, a  distribution  from sales  proceeds was
made to the Limited  Partners  of  approximately  $1,919,000  and to the General
Partner of approximately $19,000.

The  Partnership  is not  expected  to have  access  to  additional  sources  of
financing.

Long-Term
---------

For a discussion of contingencies affecting certain Local Partnerships, see Note
5 to the financial  statements.  Since the maximum loss the Partnership would be
liable for is its net  investment  in the  respective  Local  Partnerships,  the
resolution of the existing  contingencies  is not  anticipated  to impact future
results of  operations,  liquidity  or financial  condition  in a material  way.
However,  the  Partnership's  loss of its investment in a Local  Partnership may
result  in  recapture  of tax  credits  if the  investment  is lost  before  the
expiration of the applicable compliance period.

Management is not aware of any trends or events,  commitments  or  uncertainties
which have not  otherwise  been  disclosed  that  will,  or are likely to impact
liquidity in a material way.  Management  believes the only impact would be from
laws  that  have not yet been  adopted.  The  portfolio  is  diversified  by the
location of the  properties  around the United States so that if one area of the
country is experiencing  downturns in the economy,  the remaining  properties in
the  Partnership's   portfolio  may  be  experiencing  upswings.   However,  the
geographic  diversification  of the portfolio may not protect  against a general
downturn in the national economy.

Critical Accounting Policies
----------------------------

In  preparing  the  consolidated  financial  statements,   management  has  made
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities at the date of the financial  statements and the reported amounts of

                                       12
<PAGE>

revenues and expenses during the reporting periods.  Actual results could differ
from those  estimates.  Set forth below is a summary of the accounting  policies
that  management  believes are critical to the  preparation of the  consolidated
financial  statements.  The summary should be read in conjunction  with the more
complete discussion of the Partnership accounting policies included in Note 2 to
the consolidated financial statements in the annual report on Form 10-K.

Property and Equipment
----------------------

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price,  acquisition fees and expenses, and any other costs incurred
in acquiring the  properties.  The cost of property and equipment is depreciated
over their estimated useful lives using accelerated and  straight-line  methods.
Expenditures  for repairs and  maintenance  are charged to expense as  incurred;
major  renewals  and  betterments  are  capitalized.  At the time  property  and
equipment  are  retired  or  otherwise  disposed  of,  the cost and  accumulated
depreciation  are  eliminated  from  the  assets  and  accumulated  depreciation
accounts and the profit or loss on such disposition is reflected in earnings.

In  accordance  with FASB 144,  "Accounting  for the  Impairment  of Disposal of
Long-Lived  Assets",  the results of  discontinued  operations are reported as a
separate  component of income  before  extraordinary  items on the  Consolidated
Statements  of  Operations.  Discontinued  operations  include  the  results  of
operations and any gain or loss recognized for Local Partnerships that have been
disposed of or are held for sale. A gain or loss  recognized  on the disposal is
disclosed  in the notes to the  financial  statements.  Adjustments  to  amounts
previously reported in operations that are directly related to the disposal of a
Local  Partnership  are  reclassified  in the  current  period  as  discontinued
operations  for  comparability  purposes.  Assets  and  liabilities  of a  Local
Partnership that are classified as held for sale are presented separately in the
asset and liability sections, respectively, of the Consolidated Balance Sheets.

A loss on  impairment of assets is recorded when  management  estimates  amounts
recoverable   through  future   operations  and  sale  of  the  property  on  an
undiscounted basis are below depreciated cost. At that time property investments
themselves are reduced to estimated fair value  (generally using discounted cash
flows).

During the six  months  ended  September  15,  2005,  the  Partnership  recorded
$2,710,000  as a loss on  impairment  of assets or reduction  to estimated  fair
value for two Local Partnerships.

At the time management  commits to a plan to dispose of assets,  said assets are
adjusted to the lower of carrying amount or fair value less costs to sell. These
assets  are  classified  as  property  and  equipment-held  for sale and are not
depreciated.  As of September 15, 2005 and March 15, 2005, the  Partnership  has
recorded  property and equipment net of accumulated  depreciation of $14,187,533
and $11,193,351, respectively, as held for sale.

Revenue Recognition
-------------------

Rental income is earned  primarily under standard  residential  operating leases
and is typically  due the first day of each month,  but can vary by property due
to the terms of the tenant leases.  Rental income is recognized  when earned and
as rents become due and charged to tenants' accounts  receivable if not received
by the due  date.  Rental  payments  received  in  advance  of the due  date are
deferred until earned.  Rental  subsidies are recognized as rental income during
the month in which it is earned.

Other  revenues are  recorded  when earned and consist of the  following  items:
Interest  income  earned on cash and cash  equivalent  balances and cash held in
escrow balances,  income from forfeited security deposits, late charges, laundry
and vending income, and other rental related items.

Income Taxes
------------

The  Partnership  is not  required to provide  for, or pay,  any federal  income
taxes.  Net income or loss generated by the Partnership is passed through to the
partners and is required to be reported by them. The  Partnership may be subject
to state and local taxes in jurisdictions  in which it operates.  For income tax
purposes, the Partnership has a fiscal year ending December 31.

Results of Operations
---------------------

The results of operations for the three and six months ended  September 15, 2005
and 2004, consisted primarily of the results of the Partnership's  investment in
the consolidated Local Partnerships.

Rental  income  decreased  less than 1% and increased  approximately  2% for the
three and six months ended  September 15, 2005 as compared to the  corresponding
periods in 2004,  primarily due to an underaccrual  at one Local  Partnership in
the first quarter of 2004 and rental rate increases at the Local Partnerships.

Other income decreased approximately $111,000 and $194,000 for the three and six
months  ended  September  15, 2005 as compared to the  corresponding  periods in
2004,  primarily  due to a decrease in subsidiary  income being  received at one
Local Partnership in 2005.

General and administrative  decreased approximately $107,000 and $81,000 for the
three and six months ended  September 15, 2005 as compared to the  corresponding
periods in 2004,  primarily  due to  decreased  legal  costs at the  Partnership
level.

Repairs and maintenance  increased  approximately  $114,000 and $301,000 for the
three and six months ended  September 15, 2005 as compared to the  corresponding
periods  in 2004,  primarily  due to  increased  maintenance  payroll,  exterior
painting and sewer line  repairs at one Local  Partnership  and boiler  repairs,
painting, plastering apartments and door repairs at a second Local Partnership.

Operating and other decreased  approximately $109,000 for the three months ended
September 15, 2005 as compared to the  corresponding  period in 2004,  primarily
due to an underaccrual at one Local Partnership in the first quarter of 2004.

                                       13
<PAGE>

Taxes increased  approximately $55,000 and $100,000 for the three and six months
ended  September  15,  2005 as compared  to the  corresponding  periods in 2004,
primarily due to a reassessment  of the property taxes at one Local  Partnership
in 2005 and an underaccrual at two Local Partnerships in 2004.

Depreciation and  amortization  decreased  approximately  $155,000 for the three
months ended September 15, 2005 as compared to the corresponding period in 2004,
primarily  due to the  resumption  of  depreciation  expense  during  the second
quarter of 2004 at one Local  Partnership  that was previously  classified as an
asset held for sale and reclassed back as an operating unit.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

The  Partnership  has  mortgage  notes  that are  payable in  aggregate  monthly
installments  including  principal  and interest at rates varying from 1% to 12%
per annum.  The Partnership does not believe there is a material risk associated
with the  various  interest  rates  associated  with the  mortgage  notes as the
majority  of  the  Local  Partnership  mortgage  notes  have  fixed  rates.  The
Partnership currently discloses in Item 8, Note 3 to the financial statements in
the Partnership's  Annual Report on Form 10-K for the year ended March 15, 2005,
the fair value of the mortgage notes payable.

The Partnership does not have any other market risk sensitive instruments.

Item 4.  Controls and Procedures

(a) EVALUATION OF DISCLOSURE  CONTROLS AND PROCEDURES.  The Principal  Executive
Officer and Principal  Financial  Officer of Related Credit  Properties L.P. and
Liberty  Associates  III, L.P.,  the general  partners of the  Partnership,  has
evaluated  the  effectiveness  of  the  Partnership's  disclosure  controls  and
procedures (as such term is defined in Rules  13a-15(e) and 15d-15(e)  under the
Securities  Exchange Act of 1934, as amended  ("Exchange  Act") as of the end of
the period covered by this report.  Based on such  evaluation,  such officer has
concluded  that,  as of the end of such  period,  the  Partnership's  disclosure
controls and procedures are effective.

(b) INTERNAL CONTROL OVER FINANCIAL  REPORTING.  There have not been any changes
in the Partnership's internal control over financial reporting during the fiscal
quarter to which this  report  relates  that have  materially  affected,  or are
reasonably likely to materially affect, the Partnership's  internal control over
financial reporting.

                                       14
<PAGE>


                           PART II. OTHER INFORMATION



Item 1.  Legal Proceedings - None

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds - None

Item 3.  Defaults upon Senior Securities - None

Item 4.  Submission of Matters to a Vote of Security Holders - None

Item 5.  Other Information - None

Item 6.  Exhibits

         (31.1) Certification Pursuant to Rule 13a-14(a) or Rule 15d-14(a)
         (32.1)Certification  Pursuant to Rule  13a-14(b) or Rule  15d-14(b) and
               Section  1350 of Title 18 of the  United  States  Code (18 U.S.C.
               1350)

                                       15
<PAGE>


                                   SIGNATURES

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


                          LIBERTY TAX CREDIT PLUS L.P.
                                  (Registrant)


                         By: RELATED CREDIT PROPERTIES L.P.,
                             a General Partner


                             By: Related Credit Properties Inc.,
                                 its General Partner


Date: October 19, 2005
                                 By: /s/ Alan P. Hirmes
                                     ------------------
                                     Alan P. Hirmes,
                                     President and Chief Executive Officer
                                     (Principal Executive and Financial Officer)


Date: October 19, 2005
                                 By: /s/ Glenn F. Hopps
                                     ------------------
                                     Glenn F. Hopps,
                                     Treasurer
                                     (Principal Accounting Officer)


                         By: LIBERTY ASSOCIATES III, L.P.,
                             a General Partner


                             By: Related Credit Properties L.P.,
                                 its General Partner


                                 By: Related Credit Properties Inc.,
                                     its General Partner


Date: October 19, 2005
                                 By: /s/ Alan P. Hirmes
                                     ------------------
                                     Alan P. Hirmes,
                                     President and Chief Executive Officer
                                     (Principal Executive and Financial Officer)


Date: October 19, 2005
                                 By: /s/ Glenn F. Hopps
                                     ------------------
                                     Glenn F. Hopps,
                                     Treasurer
                                     (Principal Accounting Officer)


<PAGE>

                                                                    Exhibit 31.1


                         CERTIFICATION PURSUANT TO RULE
                           13a-14(a) OR RULE 15d-14(a)


I, Alan P. Hirmes,  Principal  Executive Officer and Principal Financial Officer
of Related Credit Properties L.P. and Liberty Associates III, L.P. (the "General
Partners"),  each of which is a general  partner of Liberty Tax Credit Plus L.P.
(the "Partnership"), certify that:

     1.  I have  reviewed  this  quarterly  report on Form  10-Q for the  period
         ending September 15, 2005 of the Partnership;

     2.  Based  on my  knowledge,  this  report  does  not  contain  any  untrue
         statement of a material fact or omit to state a material fact necessary
         to make the statements made, in light of the circumstances  under which
         such  statements  were made, not misleading  with respect to the period
         covered by this report;

     3.  Based on my knowledge,  the financial  statements,  and other financial
         information  included in this  report,  fairly  present in all material
         respects the financial condition,  results of operations and cash flows
         of the  Partnership  as of,  and for,  the  periods  presented  in this
         report;

     4.  I am responsible for establishing and maintaining  disclosure  controls
         and  procedures  (as  defined  in  Exchange  Act  Rules  13a-15(e)  and
         15d-15(e)) and internal control over financial reporting (as defined in
         Exchange Act Rules  13a-15(f) and  15d-15(f)) for the  Partnership  and
         have:

         a) designed such  disclosure  controls and  procedures,  or caused such
         disclosure controls and procedures to be designed under my supervision,
         to  ensure  that  material  information  relating  to the  Partnership,
         including its consolidated subsidiaries,  is made known to me by others
         within  those  entities,  particularly  during the period in which this
         report is being prepared;

         b) designed such internal control over financial  reporting,  or caused
         such internal control over financial  reporting to be designed under my
         supervision,  to provide reasonable assurance regarding the reliability
         of financial reporting and the preparation of financial  statements for
         external  purposes in accordance  with  generally  accepted  accounting
         principles;

         c) evaluated the effectiveness of the Partnership's disclosure controls
         and procedures  and presented in this report my  conclusions  about the
         effectiveness of the disclosure controls and procedures,  as of the end
         of the period covered by this report based on such evaluation; and

         d)  disclosed in this report any change in the  Partnership's  internal
         control over financial reporting that occurred during the Partnership's
         most  recent  fiscal  quarter  that  has  materially  affected,  or  is
         reasonably  likely to materially  affect,  the  Partnership's  internal
         control over financial reporting; and

     5.  I have  disclosed,  based  on my most  recent  evaluation  of  internal
         control over financial reporting,  to the Partnership's auditors and to
         the boards of directors of the General Partners:

         a) all significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect the  Partnership's  ability to
         record, process, summarize and report financial information; and

         b) any fraud,  whether or not  material,  that  involves  management or
         other  employees  who  have a  significant  role  in the  Partnership's
         internal control over financial reporting.



         Date: October 19, 2005
               ----------------
                                             By: /s/ Alan P. Hirmes
                                                 ------------------
                                                 Alan P. Hirmes
                                                 Principal Executive Officer and
                                                 Principal Financial Officer


<PAGE>


                                                                    Exhibit 32.1


                            CERTIFICATION PURSUANT TO
                      RULE 13a-14(b) OR RULE 15d-14(b) AND
                                  SECTION 1350
                        OF TITLE 18 OF THE UNITED STATES
                             CODE ("18 U.S.C. 1350")


In  connection  with the  Quarterly  Report of Liberty Tax Credit Plus L.P. (the
"Partnership")  on Form 10-Q for the period  ending  September 15, 2005 as filed
with the  Securities  and  Exchange  Commission  ("SEC") on the date hereof (the
"Report"),  I,  Alan  P.  Hirmes,  Principal  Executive  Officer  and  Principal
Financial Officer of Related Credit Properties L.P. and Liberty  Associates III,
L.P., the general  partners of the Partnership,  certify,  pursuant to 18 U.S.C.
Section 1350, as adopted  pursuant to Section 906 of the  Sarbanes-Oxley  Act of
2002, that:


       (1) The Report fully complies with the  requirements  of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and


       (2) The  information  contained  in the Report  fairly  presents,  in all
material  respects,  the  financial  condition  and result of  operations of the
Partnership.

A signed  original of this  written  statement  required by Section 906 has been
provided  to the  Partnership  and  will  be  retained  by the  Partnership  and
furnished to the SEC or its staff upon request.



By:  /s/ Alan P. Hirmes
     ------------------
     Alan P. Hirmes
     Principal Executive Officer and Principal Financial Officer
     October 19, 2005