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 December 15, 1996

                                       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                                         13-2641866
-------------------------------                       -----------------
(State or other jurisdiction of                       (I.R.S. Employer
incorporation or 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)421-5333

       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 ____ 
<PAGE>
                         PART I - Financial Information

Item 1. Financial Statements

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)

                                              ==========================
                                              December 15,    March 15,
                                                  1996          1996
                                              ------------    ----------
ASSETS
Property and equipment, at cost,
   net of accumulated depreciation
   of $70,061,838 and $63,484,987,
   respectively                              $184,082,280  $190,117,455
Cash and cash equivalents                       2,625,849     2,780,280
Cash held in escrow                             9,407,329     9,493,952
Accounts receivable - tenants                     469,642       527,513
Deferred costs - net of accumulated
   amortization of $3,626,547
   and $3,520,961, respectively                 3,743,642     3,811,548
Other assets                                    1,689,756     1,607,470
                                             ------------  ------------
   Total assets                              $202,018,498  $208,338,218
                                             ============  ============

LIABILITIES AND PARTNERS' CAPITAL
Liabilities:                                                           
   Mortgage notes payable                    $158,007,404  $158,390,811
   Accounts payable and other
    liabilities                                 7,933,692     7,413,973
   Due to local general partners and
    affiliates                                 13,947,023    13,458,747
   Due to general partners and
    affiliates                                  1,938,932     2,381,554
   Due to selling partners                        922,023       994,583
                                             ------------  ------------
   Total liabilities                          182,749,074   182,639,668
                                             ------------  ------------

Minority interest                               6,154,818     7,133,812
                                             ------------  ------------

Commitments and contingencies (Note 4)

Partners' capital:
   Limited partners (15,987.5 BACs
    issued and outstanding)                    13,713,304    19,108,935
   General partners                              (598,698)     (544,197)
                                             ------------  ------------
   Total partners' capital                     13,114,606    18,564,738
                                             ------------  ------------
   Total liabilities and partners'
    capital                                  $202,018,498  $208,338,218
                                             ============  ============

           See Accompanying Notes to Consolidated Financial Statements

                                       2
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)

                          ===================           =====================
                           Three Months Ended            Nine Months Ended
                             December 15,                    December 15,
                          -------------------           ---------------------
                            1996        1995*             1996         1995*
                          --------     -------           -------     ---------
                                              
Revenues
 Rental income            $ 8,403,160  $ 8,609,585    $25,120,030   $25,126,714
 Other                        332,624      334,587      1,063,270     1,222,838
                          -----------  -----------    -----------   -----------
                            8,735,784    8,944,172     26,183,300    26,349,552
                          -----------  -----------    -----------   -----------
Expenses
 General and
  administrative            1,547,893    1,597,586      4,116,018     4,046,171
 General and
  administrative-
  related parties
  (Note 2)                    410,171      437,739      1,220,363     1,335,170
 Repairs and
  maintenance               1,390,504    1,363,097      4,493,906     4,013,572
 Operating and
  other                       953,933      887,268      3,090,403     2,996,518
 Real estate taxes            390,658      401,266      1,189,787     1,242,598
 Insurance                    228,813      252,075        916,043       921,610
 Interest                   3,434,839    3,572,314     10,080,409    10,427,423
 Depreciation
  and
  amortization              2,263,618    2,381,216      6,807,005     7,129,435
                          -----------  -----------    -----------   -----------
                           10,620,429   10,892,561     31,913,934    32,112,497
                          -----------  -----------    -----------   -----------
Minority interest
 in loss of
 subsidiaries                  99,322       15,063        280,502       265,454
                          -----------  -----------    -----------   -----------
Net loss                  $(1,785,323) $(1,933,326)   $(5,450,132)  $(5,497,491)
                          ===========  ===========    ===========   ===========
Net loss-limited
 partners                 $(1,767,470) $(1,913,993)   $(5,395,631)  $(5,442,516)
                          ===========  ===========    ===========   ===========
Number of BAC's
 outstanding                 15,987.5     15,987.5       15,987.5      15,987.5
                          ===========  ===========    ===========   ===========
Net loss per
 BAC                       $  (110.55) $   (119.71)   $   (337.49)  $   (340.42)
                          ===========  ===========    ===========   ===========

*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' Capital
                                   (Unaudited)

                                        ---------------------------------------
                                                         Limited      General
                                             Total       Partners     Partners
                                        ---------------------------------------

Partners' capital -
 March 16, 1996                          $18,564,738   $19,108,935   $ (544,197)

Net loss, nine months
 ended December
 15, 1996                                (5,450,132)    (5,395,631)     (54,501)
                                        -----------    -----------   ----------
Partners' capital -
 December 15, 1996                      $13,114,606    $13,713,304   $ (598,698)
                                        ===========    ===========   ==========

           See Accompanying Notes to Consolidated Financial Statements

                                       4
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                            Statements of Cash Flows
                (Decrease) Increase in Cash and Cash Equivalents
                                   (Unaudited)

                                                 ========================
                                                    Nine Months Ended
                                                       December 15,
                                                 ------------------------
                                                    1996          1995
                                                 ---------      --------
Cash flows provided by operating activities:

   Net loss                                     $(5,450,132)  $(5,497,491)
   Adjustments to reconcile net loss
    to net cash provided by
    operating activities:
   Depreciation and amortization                  6,807,005     7,129,435
   Minority interest in loss of
    subsidiaries                                   (280,502)     (265,454)
   Decrease (increase) in accounts
    receivable-tenants                               57,871       (31,354)
   Increase in other assets                         (82,286)     (429,697)
   Increase in accounts payable and
    other liabilities                               519,719     2,072,124
   (Decrease) increase in due to general
    partners and affiliates                        (442,622)      480,460
   Decrease in cash held in escrow                   15,164       231,688
                                                -----------   -----------
   Net cash provided by operating
    activities                                    1,144,217     3,689,711
                                                -----------   -----------

Cash flows used in investing activities:

   Increase in deferred costs                             0       (17,500)
   Decrease (increase) in cash held
    in escrow                                        71,459      (381,736)
   Acquisition of property and
    equipment                                      (541,676)     (553,600)
                                                -----------   -----------

   Net cash used in investing activities           (470,217)     (952,836)
                                                -----------   -----------

           See Accompanying Notes to Consolidated Financial Statements

                                       5
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                            Statements of Cash Flows
                (Decrease) Increase in Cash and Cash Equivalents
                                   (Unaudited)

                                                 ========================
                                                    Nine Months Ended
                                                       December 15,
                                                 ------------------------
                                                    1996          1995
                                                 ---------      --------
Cash flows used in financing activities:

   Increase in deferred costs                      (162,248)            0
   Decrease in due to selling partners              (72,560)      (18,540)
   Proceeds from mortgage notes                   4,480,000             0
   Repayments of mortgage notes                  (4,863,407)   (2,792,711)
   Increase in due to local general
    partners and affiliates                         650,982     1,222,712
   Decrease in due to local general
    partners and affiliates                        (162,706)     (168,497)
   Decrease in capitalization of
    consolidated subsidiaries
    attributable to minority interest              (698,492)     (183,386)
                                                -----------   -----------

   Net cash used in financing activities           (828,431)   (1,940,422)
                                                -----------   -----------

Net (decrease) increase in cash and
   cash equivalents                                (154,431)      796,453

Cash and cash equivalents at
   beginning of period                            2,780,280     2,928,833
                                                -----------   -----------

Cash and cash equivalents at
   end of period                                 $2,625,849    $3,725,286
                                                ===========   ===========

           See Accompanying Notes to Consolidated Financial Statements

                                       6
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1996
                                   (Unaudited)

Note 1 - General

The consolidated financial statements include the accounts of the Partnership
and 31 subsidiary partnerships ("subsidiary partnerships" or Local Partnerships)
in which the Partnership is a limited partner. Through the rights of the
Partnership and/or the General Partner, which General Partner has a contractual
obligation to act on behalf of the Partnership, to remove the general partner of
the subsidiary local partnerships and to approve certain major operating and
financial decisions, the Partnership has a controlling financial interest in the
subsidiary local partnerships. All intercompany accounts and transactions with
the subsidiary partnerships have been eliminated in consolidation.

The Partnership's fiscal quarter ends on December 15. All subsidiary
partnerships have fiscal quarters ending September 30. Accounts of the
subsidiary partnerships have been adjusted for intercompany transactions from
October 1 through December 15.

In March 1995, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting for
the Impairment of Long-Lived Asset and for Long-Lived Assets to Be Disposed Of".
Under SFAS No. 121, the Partnership is required to review long-lived assets and
certain identifiable intangibles for impairment whenever events or changes in
circumstances indicate that the book value of an asset may not be recoverable.
An impairment loss should be recognized whenever the review demonstrates that
the book value of a long-lived asset is not recoverable. Effective March 16,
1996, the Partnership adopted SFAS No. 121, consistent with the required
adoption period.

Property and equipment are carried at the lower of depreciated cost or estimated
amounts recoverable through future operations and ultimate disposition of the
property. Cost includes the purchase price, acquisition fees and expenses, and
any other costs incurred in acquiring the properties. As required by SFAS 121, a
provision for loss on impairment of assets is recorded when estimated amounts
recoverable through future operations and sale of the property on an
undiscounted basis are below depreciated cost. However, depreciated cost,
adjusted for such reductions in value, if any, may be greater than the fair
value. Property investments themselves are reduced to estimated fair value
(generally using discounted cash flows) when the property is considered to be
impaired and the depreciated cost exceeds estimate fair value. Through December
15, 1996, the Partnership has not recorded any

                                      7
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1996
                                   (Unaudited)

Note 1 - General (continued)

provisions for loss on impairment of assets or reduction to estimated fair
value.

In the opinion of the general partners of the Partnership, 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 December 15, 1996, the results of operations for the
three and nine months ended December 15, 1996 and 1995 and cash flows for the
nine months ended December 15, 1996 and 1995. However, the operating results for
the nine months ended December 15, 1996 may not be indicative of the results for
the year.

Certain information and note disclosure normally included in financial
statements prepared in accordance with generally accepted accounting principals
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,
1996.

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

Losses attributable to minority interests which exceed the minority interests'
investment in subsidiary partnerships have been charged to the Partnership. Such
losses aggregated $48,000 and $145,000, and $144,000 and $245,000 for the three
and nine months ended December 15, 1996 and 1995, respectively. The
Partnership's investment in each subsidiary partnership is equal to the
respective subsidiary partnership's partners' equity less minority interest
capital, if any. 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.

                                       8
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1996
                                   (Unaudited)

Note 2 - Related Party Transactions (continued)

The General Partners and their affiliates perform services for the Partnership.
The costs incurred for the three and nine months ended December 15, 1996 and
1995 are as follows:

                               Three Months Ended     Nine Months Ended
                              --------------------   -------------------
                                  December 15,           December 15,
                              --------------------   -------------------
                                1996       1995*       1996        1995*
                              -------     -------     ------      ------
Partnership
 management
 fees (a)                   $  50,000   $  81,500    $  150,000  $  244,500
Expense
 reimburse-
 ment (b)                      45,477      48,008       117,053     161,090
Property
 management
 fees (c)                     294,694     292,231       892,310     881,580
Local adminis-
 trative fee (d)               20,000      16,000        61,000      48,000
                            ---------   ---------    ----------  ----------
                            $ 410,171   $ 437,739    $1,220,363  $1,335,170
                            =========   =========    ==========  ==========

*Reclassified for comparative purposes

(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 Agreement), 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 $1,000,000 and
$850,000 were accrued and unpaid as of December 15, 1996 and March 15, 1996,
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 the Related General Partner amounting to approximately $289,000 and $172,000
were accrued and unpaid as of December 15, 1996 and March 15, 1996,
respectively.

                                       9
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1996
                                   (Unaudited)

Note 2 - Related Party Transactions (continued)

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

(c) Property management fees incurred by subsidiary partnerships amounted to
$440,878 and $1,357,755, and $477,714 and $1,358,588 for the three and nine
months ended December 15, 1996, and 1995, respectively. Of these fees $274,567
and $831,928, and $273,967 and $826,789 were incurred to affiliates of the
subsidiary partnerships' general partners. In addition, $20,127 and $60,382, and
$18,264 and $54,791 were incurred to affiliates of the Partnership.

(d) Liberty Associates III L.P., 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 - Mortgage Notes Payable

On March 18, 1996, 2108 Bolton Drive Associates, L.P. ("2108") refinanced its
mortgage payable which had a balance of approximately $3,500,000. The new
mortgage note in the amount of $4,480,000 paid off the former mortgage note and
approximately $900,000 of debt due to an affiliate of the Partnership. The
mortgage bears interest at the rate of 8.64% per annum and is payable in monthly
installments of $36,105 which includes principal and interest through March
2006, when the remaining principal balance of approximately $3,700,000 will be
due.

Note 4 - Commitments and Contingencies

The following disclosures include changes and/or additions to disclosures
regarding the subsidiary partnerships which were included in the Partnership's
Annual Report on Form 10-K for the period ended March 15, 1996.

2108 Bolton Drive Associates, L.P. 
---------------------------------- 
2108 Bolton Drive Associates, L.P. ("2108"), has experienced recurring operating
losses and had a working capital deficit at December 31, 1995. The auditors for
2108 modified their report on the 1995 and 1994 Fiscal Year financial statements
due to the uncertainty of 2108's ability to continue as a going concern. On
March 18, 1996, 2108 refinanced its mortgage payable of approximately $3,500,000
(see Note 3 above). The Partnership's invest-

                                       10
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1996
                                   (Unaudited)

Note 4 - Commitments and Contingencies (continued)

ment in 2108 at December 15, 1996 and March 15, 1996 was approximately
$1,674,000 and $2,204,000, respectively and the minority interest balance was
approximately $1,690,000 and $1,695,000. 2108's net loss after minority interest
amounted to approximately $181,000 and $530,000 and $299,000 and $728,000 for
the three and nine months ended December 15, 1996 and 1995, respectively.

Regent Street Associates, L.P.
------------------------------
Regent Street Associates, L.P. ("Regent Street") has received from the Internal
Revenue Service a notice of final partnership administrative adjustment.
Pursuant to the notice the Internal Revenue Service has challenged the method in
which Regent Street has allocated the below-market federal financing to its
properties, which challenge, if successful, would result in Regent Street only
being able to claim a 4% Low Income Housing Tax Credit rather than a 9% Low
Income Housing Tax Credit. The Internal Revenue Service has also challenged the
inclusion of a portion of the developer's fee and legal costs in qualified
expenditures for the purpose of determining Low Income Housing and Historic
Rehabilitation Tax Credits and depreciable basis. The general partners of the
Regent Street subsidiary partnership have filed a petition in the United States
Tax Court for readjustment challenging each of the positions taken by the
Internal Revenue Service. The Partnership's investment in Regent Street at
December 15, 1996 and March 15, 1996 was approximately $957,000 and $1,153,000,
respectively, and the minority interest balance was zero at each date. Regent
Street's net loss after minority interest amounted to approximately $67,000 and
$196,000 and $83,000 and $222,000 for the three and nine months ended December
15, 1996 and 1995, respectively.

Greenleaf Associates, L.P.
--------------------------
Greenleaf Associates, L.P. ("Greenleaf"), a subsidiary partnership had not made
its monthly mortgage payments when due. Pursuant to the terms of the mortgage
note, Greenleaf's failure to make the required payments when due, constituted an
event of default. As a result of the default, the mortgagee could have demanded
full payment of the mortgage loan balance ($4,453,250 at December 31, 1995) and
exercised the other remedies of a secured party under the Uniform Commercial
Code including taking possession of the collateral (the project) and selling or
otherwise disposing of the project. However, as of December 15, 1996, these
payments have been made and the mortgage is current.

                                       11
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 1996
                                   (Unaudited)

Note 4 - Commitments and Contingencies (continued)

         Walnut Park Plaza Associates
         ----------------------------
         Walnut Park Plaza Associates, ("Walnut Park") has sustained recurring
losses from operations. At December 31, 1995, Walnut Park had not made certain
payments required under the terms of the Bond Indenture and, as a result, is in
default. In August, 1995, the Project's bonds payable were sold by the
bondholder to E.A. Moos ("Moos"). On April 9, 1996, Walnut Park entered into an
interim agreement with Moos which expired October 15, 1996 and was extended
through the completion date of the year end audit and financial statements. The
interim agreement primarily allows Moos to select an interim and permanent
replacement property manager, to formulate a proposal to replace the General
Partner, and to possibly restructure the indebtedness of the project. However,
before Moos can proceed with what is described above, Moos must obtain the
approval of the Partnership and/or the General Partner and therefore the
Partnership continues to have a controlling financial interest in Walnut Park.
Walnut Park's continued existence is dependent on the impact of the interim
agreement and ultimately the resolution of the default of certain obligations
under the terms of the Bond Indenture. Contingent upon the outcome of the
interim agreement and of the status of the Bond Indenture default, Walnut Park
may be unable to continue as a going concern in its present form. The
Partnership's investment in Walnut Park at December 15, 1996 and March 15, 1996
was reduced to zero by prior years' losses and the minority interest balance
amounted to approximately $440,000 and $442,000, respectively. Walnut Park's net
loss after minority interest amounted to approximately $64,000 and $193,000 and
$26,000 and $136,000 for the three and nine months ended December 15, 1996 and
1995, respectively.

                                       12
<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.

The Partnership's primary sources of funds are the cash distributions from
operations of the Local Partnerships in which the Partnership has invested.
These sources are available to meet obligations of the Partnership. However, the
cash distributions received from the Local Partnerships to date have not been
sufficient to meet all such obligations of the Partnership. During the nine
months ended December 15, 1996 and 1995 such distributions amounted to
approximately $88,000 and $126,000 respectively. Accordingly, the Related
General Partner and affiliates advanced funds totaling approximately $118,000
and $59,000 at December 15, 1996 and March 15, 1996 respectively, to meet the
Partnership's third party obligations. In addition, certain fees and expense
reimbursements owed to the General Partners amounting to approximately
$1,289,000 and $1,022,000 were accrued and unpaid as of December 15, 1996 and
March 15, 1996, respectively. Without the General Partner's advances and
continued accrual without payment of certain fees and expense reimbursements,
the Partnership will not be in a position to meet its obligations. The General
Partners have continued advancing and allowing the accrual without payment of
these amounts but are under no obligation to do so.

For the nine months ended December 15, 1996, cash and cash equivalents of the
Partnership and its 31 consolidated subsidiary partnerships decreased
approximately $154,000. This decrease is attributable to the acquisition of
property and equipment ($542,000), an increase in deferred costs ($162,000), a
decrease in due to selling partners ($73,000), net repayments of mortgage notes
($383,000) and a decrease in capitalization of consolidated subsidiaries
attributable to minority interest ($698,000) which exceeded cash provided by
operating activities ($1,144,000), a decrease in cash held in escrow for
investing activities ($72,000), and a net increase in due to local general
partners and affiliates ($488,000). Included in the adjustments to reconcile the
net loss to cash provided by the operating activities is depreciation and
amortization in the amount of approximately $6,807,000.

For a discussion of contingencies affecting certain Local Partnerships, see Note
4 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,

                                       13
<PAGE>
liquidity or financial condition in a material way. However, the Partnership's
loss of its investment in a Local Partnership will eliminate the ability to
generate future tax credits from such Local Partnership and may also result in
recapture of tax credits if the investment is lost before the expiration of the
credit period.

Except as described above, management is not aware of any other trends or
events, commitments or uncertainties that will 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 portfolio may be
experiencing upswings. However, the geographic diversifications of the portfolio
may not protect against a general downturn in the national economy. The
Partnership has fully invested the proceeds of its offerings in 31 Local
Partnerships, all of which fully have their tax credits in place (see Note 4 to
the financial statements with respect to Regent Street Associates L.P.). The tax
credits are attached to the project for a period of ten years and are
transferable with the property during the remainder of the ten year period. If
trends in the real estate market warranted the sale of a property, the remaining
tax credits would transfer to the new owner, thereby adding significant value to
the property on the market, which are not included in the financial statement
carrying amount.

Results of Operations

In March 1995, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting for
the Impairment of Long-Lived Asset and for Long-Lived Assets to Be Disposed Of".
Under SFAS No. 121, the Partnership is required to review long-lived assets and
certain identifiable intangibles for impairment whenever events or changes in
circumstances indicate that the book value of an asset may not be recoverable.
An impairment loss should be recognized whenever the review demonstrates that
the book value of a long-lived asset is not recoverable. Effective March 16,
1996, the Partnership adopted SFAS No. 121, consistent with the required
adoption period.

Property and equipment are carried at the lower of depreciated cost or estimated
amounts recoverable through future operations and ultimate disposition of the
property. Cost includes the purchase price, acquisition fees and expenses, and
any other costs incurred in acquiring the properties. A provision for loss on
impairment of assets is recorded when estimated amounts recoverable through
future operations and sale of the property on an

                                       14
<PAGE>

undiscounted basis are below depreciated cost. However, depreciated cost,
adjusted for such reductions in value, if any, may be greater than the fair
value. Property investments themselves are reduced to estimated fair value
(generally using discounted cash flows) when the property is considered to be
impaired and the depreciated cost exceeds estimated fair value. Through December
15, 1996, the Partnership has not recorded any provisions for loss on impairment
of assets or reduction to estimated fair value.

Results of operations for the three and nine months ended December 15, 1996 and
1995 consisted primarily of the results of the Partnership's investment in the
consolidated Local Partnerships.

Rental income decreased approximately 2% and less than 1% for the three and nine
months ended December 15, 1996 as compared to the corresponding periods in 1995
primarily due to a retroactive rent increase during the third quarter of 1995 at
one Local Partnership and a decrease in rental assistance payments at another
Local Partnership. Excluding these two Local Partnerships, rental income
increased approximately 1% and 2% for the three and nine months ended December
15, 1996 as compared to 1995.

Other income decreased approximately $160,000 for the nine months ended December
15, 1996 as compared to the corresponding period in 1995 primarily due to a one
time special grant for property improvements during the first quarter of 1995 at
one Local Partnership.

Total expenses excluding repairs and maintenance remained fairly consistent with
decreases of 3% and 2% for the three and nine months ended December 15, 1996 as
compared to 1995.

Repairs and maintenance increased approximately $480,000 for the nine months
ended December 15, 1996 as compared to the corresponding period in 1995
primarily due to increases at five Local Partnerships. There was an increase at
one Local Partnership due to damage caused by high winds. Another Local
Partnership installed a fence and new entry doors. There was an increase in
expenses at a third Local Partnership primarily due to repairs to one unit that
was damaged by fire. A fourth Local Partnership replaced carpeting as well as
made repairs to the exterior of the building. The increase at the fifth Local
Partnership was primarily due to balcony deck repairs as well as asphalt seal
coating and stripping.

                                       15
<PAGE>
           PART II.  OTHER INFORMATION

Item 1.    Legal Proceedings

           The litigation described in Note 4 to the financial statements
contained in Part 1, Item I is incorporated herein by reference.

Item 2.    Changes in Securities - None

Item 3.    Defaults Upon Senior Securities - None

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

Item 5.    Other Information - None

Item 6.    Exhibits and Reports on Form 8-K - None

           (a) Exhibits:

               27      Financial Data Schedule (filed herewith).

           (b)  Reports on Form 8-K - No  reports on Form 8-K were filed  
during the quarter.

                                       16

<PAGE>
                                   SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.,
                              a General Partner

Date:  January 28, 1997

                              By:/s/ Alan P. Hirmes
                                 ------------------
                                 Alan P. Hirmes,
                                 Vice President
                                (principal financial officer)

Date:  January 28, 1997

                              By:/s/ Richard A. Palermo
                                 ----------------------
                                 Richard A. Palermo,
                                 Treasurer
                                 (principal accounting officer)


                          By: LIBERTY G.P. INC.,
                              a General Partner

Date:  January 28, 1997

                              By:/s/ Paul L. Abbott
                              ---------------------
                                 Paul L. Abbott,
                                 Chairman of the Board, President,
                                 Chief Operating Officer and Director

                                       17