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, 2004

                                       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                              (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

     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
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                  ============      ============
                                                  September 15,       March 15,
                                                      2004              2004
                                                  ------------      ------------
<S>                                               <C>               <C>
ASSETS
Property and equipment, at cost,
  net of accumulated depreciation
  of $112,970,558 and $121,278,707
  respectively                                    $105,437,253      $120,489,756
Property and equipment -
  held for sale, net of accumulated
  depreciation of $7,572,358 and $0                  6,076,671                 0
Cash and cash equivalents                            4,697,677         5,524,728
Cash held in escrow                                 15,284,831        15,550,003
Accounts receivable - tenants                          481,697           938,800
Deferred costs - net of accumulated
  amortization of $2,090,589
  and $2,394,139, respectively                       2,209,034         2,609,060
Other assets                                         1,887,766         1,373,958
                                                  ------------      ------------
Total assets                                      $136,074,929      $146,186,305
                                                  ============      ============

</TABLE>


                                       2
<PAGE>



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

<TABLE>
<CAPTION>

                                               =============      ==============
                                               September 15,         March 15,
                                                   2004                2004
                                               ------------       --------------
<S>                                            <C>                <C>
LIABILITIES AND PARTNERS' DEFICIT
Liabilities:
  Mortgage notes payable                       $ 128,168,874      $ 136,800,161
  Accounts payable and other
   liabilities                                    13,608,182         14,571,500
  Due to local general partners and
   affiliates                                     20,635,659         19,979,284
  Due to general partners and
   affiliates                                      9,366,810          8,568,329
  Due to selling partners                          1,292,934          1,292,934
                                               -------------      -------------
Total liabilities                                173,072,459        181,212,208
                                               -------------      -------------


Minority interest                                    548,151          1,654,689
                                               -------------      -------------

Commitments and contingencies
  (Note 4)

Partners' deficit:
  Limited partners (15,987.5 BACs
   issued and outstanding)                       (36,440,380)       (35,583,942)
  General partners                                (1,105,301)        (1,096,650)
                                               -------------      -------------
Total partners' deficit                          (37,545,681)       (36,680,592)
                                               -------------      -------------
Total liabilities and partners'
  deficit                                      $ 136,074,929      $ 146,186,305
                                               =============      =============

</TABLE>
See accompanying notes to consolidated financial statements.



                                       3
<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,
                             ----------------------------    ----------------------------
                                 2004            2003            2004            2003
                             ----------------------------    ----------------------------

<S>                          <C>             <C>             <C>             <C>
Revenues
Rental income                $  7,900,642    $  8,390,022    $ 15,851,004    $ 16,784,165
Other                             289,988         337,544         552,755         655,992
Gain on sale of
  properties (Note 3)              20,446         522,560       2,524,907       1,808,199
                             ------------    ------------    ------------    ------------

                                8,211,076       9,250,126      18,928,666      19,248,356
                             ------------    ------------    ------------    ------------
Expenses
General and
  administrative                1,330,400       1,676,753       2,780,641       3,125,545
General and
  administrative-
  related parties
  (Note 2)                        653,050         658,731       1,237,432       1,299,436
Repairs and
  maintenance                   1,895,770       1,848,639       3,948,166       3,519,097
Operating and other             1,082,697       1,301,745       2,489,080       2,771,832
Taxes                             344,070         379,577         718,301         740,693
Insurance                         478,007         447,290         931,557         910,883
Financial                       2,233,921       2,610,281       4,759,896       5,252,023
Depreciation and
amortization                    2,060,567       2,138,802       3,935,201       4,232,689
                             ------------    ------------    ------------    ------------

Total expenses                 10,078,482      11,061,818      20,800,274      21,852,198
                             ------------    ------------    ------------    ------------

Loss before minority
  interest                     (1,867,406)     (1,811,692)     (1,871,608)     (2,603,842)

Minority interest
  in loss of
  subsidiaries                      7,431         233,316       1,006,519         464,022
                             ------------    ------------    ------------    ------------

Net loss                     $ (1,859,975)   $ (1,578,376)   $   (865,089)   $ (2,139,820)
                             ============    ============    ============    ============

Net loss - limited
  partners                   $ (1,841,375)   $ (1,562,592)   $   (856,438)   $ (2,118,422)
                             ============    ============    ============    ============

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

Net loss per BAC             $    (115.18)   $     (97.73)   $     (53.57)   $    (132.50)
                             ============    ============    ============    ============

</TABLE>

See accompanying notes to consolidated financial statements.


                                       4
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
             Consolidated Statement of Changes in Partners' Deficit
                                   (Unaudited)
<TABLE>
<CAPTION>

                               ============      ============      =============
                                                   Limited           General
                                  Total            Partners          Partners
                               ------------      ------------      -------------
<S>                            <C>               <C>               <C>
Partners' deficit -
  March 16, 2004               $(36,680,592)     $(35,583,942)     $ (1,096,650)

Net loss                           (865,089)         (856,438)           (8,651)
                               ------------      ------------      ------------

Partners' deficit -
  September 15, 2004           $(37,545,681)     $(36,440,380)     $ (1,105,301)
                               ============      ============      ============

</TABLE>

See accompanying notes to consolidated financial statements.



                                       5
<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,
                                                   ----------------------------
                                                       2004             2003
                                                   ----------------------------
<S>                                                <C>              <C>
Cash flows from operating activities:

Net loss                                           $  (865,089)     $(2,139,820)
Adjustments to reconcile net loss to net
  cash provided by operating activities:
Gain on sale of properties (Note 3)                 (2,524,907)      (1,808,199)
Depreciation and amortization                        3,935,201        4,232,689
Minority interest in loss of
  subsidiaries                                      (1,006,519)        (464,022)
Decrease in accounts
  receivable-tenants                                   438,698          107,842
Increase in other assets                              (513,808)        (196,319)
Increase in accounts payable and
  other liabilities                                    928,232        1,114,998
Increase in due to general partners
  and affiliates                                       826,814          373,547
(Increase) decrease  in cash held
  in escrow                                           (436,956)           5,068
                                                   -----------      -----------

Net cash provided by operating
  activities                                           781,666        1,225,784
                                                   -----------      -----------

Cash flows from investing activities:
Proceeds from sale of properties                             0          504,984
Decrease (increase) in cash held
  in escrow                                            334,169          (32,125)
Improvements to property and
  equipment                                           (897,955)        (638,555)
                                                   -----------      -----------

Net cash used in investing activities                 (563,786)        (165,696)
                                                   -----------      -----------

</TABLE>


                                       6
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (decrease) in Cash and Cash Equivalents
                                   (Unaudited)
                                   (continued)

<TABLE>
<CAPTION>
                                                   ============================
                                                         Six Months Ended
                                                           September 15,
                                                   ----------------------------
                                                       2004             2003
                                                   ----------------------------
<S>                                                <C>              <C>
Cash flows from financing activities:
Repayments of mortgage notes                          (1,301,287)    (1,794,327)
Increase in due to local general
  partners and affiliates                                791,391        505,636
Decrease in due to local general
  partners and affiliates                               (135,016)      (795,163)
(Decrease) increase in capitalization
  of consolidated subsidiaries
  attributable to minority interest                     (100,019)       167,491
                                                     -----------    -----------

Net cash used in
  financing activities                                  (744,931)    (1,916,363)
                                                     -----------    -----------

Net decrease in cash and cash
  equivalents                                           (527,051)      (856,275)

Cash and cash equivalents at
  beginning of period                                  5,224,728      6,067,262
                                                     -----------    -----------

Cash and cash equivalents at
  end of period                                      $ 4,697,677    $ 5,210,987
                                                     ===========    ===========

Supplemental disclosures of noncash activities:
Increase in property and equipment -
  held for sale reclassified from
  property and equipment                             $ 6,076,671    $ 8,952,525

</TABLE>


                                       7
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (decrease) in Cash and Cash Equivalents
                                   (Unaudited)
                                   (continued)

<TABLE>
<CAPTION>
                                                   ============================
                                                         Six Months Ended
                                                           September 15,
                                                   ----------------------------
                                                       2004             2003
                                                   ----------------------------
<S>                                                <C>              <C>
Summarized below are the
  components of the gain on sale
  of properties:

Decrease in property and equipment,
  net of accumulated depreciation                  $ 6,024,442      $ 6,565,853
Decrease in mortgage notes payable                  (7,330,000)      (6,377,743)
Decrease in due to general partners
  and affiliates                                       (28,333)         (45,000)
Decrease in due to local general
  partner and affiliates                                     0         (892,675)
Decrease in cash held in escrow                        367,959                0
Decrease in rents receivable                            18,405                0
Decrease in accounts payable, accrued
  expenses and other liabilities                    (1,891,550)        (553,650)
Decrease in deferred costs                             314,170                0

</TABLE>

See accompanying notes to consolidated financial statements.


                                       8
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2004
                                   (Unaudited)


Note 1 - General

The  consolidated  financial  statements for the six months ended  September 15,
2004 and 2003,  include  the  accounts  of  Liberty  Tax Credit  Plus L.P.  (the
"Partnership")  and  27 and  30  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 generally accepted accounting principles ("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, 2004,  the results of operations  for the three
and six  months  ended  September  15,  2004 and 2003 and cash flows for the six
months ended  September 15, 2004 and 2003.  However,  the operating  results and
cash flows for the six months ended  September 15, 2004 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, 2004.



                                       9
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2004
                                   (Unaudited)


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 $0 for both the three
and  six  months  ended   September   15,  2004  and  2003,   respectively.   In
consolidation,   all   subsidiary   partnership   losses  are  included  in  the
Partnership's  capital account except for losses allocated to minority  interest
capital.



                                       10
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2004
                                   (Unaudited)


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  for the three  and six  months  ended
September 15, 2004 and 2003 were as follows:

<TABLE>
<CAPTION>

                                  Three Months Ended         Six Months Ended
                                     September 15,             September 15,
                               -----------------------   -----------------------
                                  2004         2003         2004         2003
                               -----------------------   -----------------------
<S>                            <C>          <C>          <C>          <C>
Partnership manage-
  ment fees (a)                $  269,250   $  269,250   $  531,000   $  538,500
Expense reimburse-
  ment (b)                         53,930       58,382       84,244       82,149
Property management
  fees incurred to af-
  filiates of the Gen-
  eral Partners (c)                23,653       27,441       47,306       54,882
Local administrative
  fee (d)                          13,000       14,000       26,000       28,000
                               ----------   ----------   ----------   ----------
Total general and
  administrative-
  General Partners                359,833      369,073      688,550      703,531
                               ----------   ----------   ----------   ----------
Property manage-
  ment fees
  incurred to affili-
  ates of the local
  general partners (c)            293,217      289,658      548,882      595,905
                               ----------   ----------   ----------   ----------

Total general and
  administrative-
  related parties              $  653,050   $  658,731   $1,237,432   $1,299,436
                               ==========   ==========   ==========   ==========
</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


                                       11
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2004
                                   (Unaudited)


review of the Partnership's investments. Partnership management fees owed to the
General  Partners  amounting to  approximately  $8,317,000 and  $7,911,000  were
accrued and unpaid as of September 15, 2004 and March 15, 2004, 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
$174,000 and $90,000 were accrued and unpaid as of September  15, 2004 and March
15, 2004, 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 amounted to
$426,227  and  $463,847  and  $893,657 and $919,507 for the three and six months
ended  September 15, 2004 and 2003,  respectively.  Of these fees,  $293,217 and
$289,658  and $548,882 and $595,905  were  incurred to  affiliates  of the local
general partners. In addition,  $23,653 and $27,441 and $47,306 and $54,882 were
incurred to affiliates of the General Partners.

(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

On August 27, 2004, the property and the related assets and  liabilities of 2108
Bolton Drive  Associated,  L.P.  ("Bolton") were sold to an  unaffiliated  third
party for $8,891,000, resulting in a gain of approximately $1,500,000 which will
be recognized in the financial statements of the Partnership's Form 10-Q for the
quarter ended December 15, 2004.



                                       12
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2004
                                   (Unaudited)


On July 30,  2004,  the  property  and the  related  assets and  liabilities  of
Tanglewood  Apartments,  L.P.  ("Tanglewood") were sold to an unaffiliated third
party for $3,425,000, resulting in a gain of approximately $1,189,000 which will
be recognized in the financial statements of the Partnership's Form 10-Q for the
quarter ended December 15, 2004.

On March 31, 2004, the property and the related assets and liabilities of Walnut
Park Plaza  ("Walnut")  were sold to the Local  General  Partner  for a purchase
price  of $1  plus  the  assumption  of  all  the  related  debt  which  totaled
approximately  $7,732,000 resulting in a gain of approximately  $2,525,000.  The
sale resulted in the liquidation of Walnut.

On  March  2,  2004,  the  Partnership  signed  a  "Letter  of  Intent"  with an
unaffiliated  third  party to purchase  the  Partnership's  limited  partnership
interest in  Bayridge  Associates,  L.P.  ("Bayridge")  for a purchase  price of
$1,100,000  plus the assumption of the existing debt. The closing is expected to
occur in 2006. No assurances can be given that the sale will actually occur.

On May 19, 2003, the property and the related  assets and  liabilities of Silver
Blue Lake Apts. LTD ("Silver Blue") were sold to an unaffiliated third party for
a purchase  price of $3,500,000  resulting in a gain of  approximately  $408,000
which was recognized in the quarter ended September 15, 2003.  Accrued  interest
on a note related to the Local Partnership was forgiven resulting in forgiveness
of indebtedness income of approximately $114,000 which was recognized during the
quarter ended September 15, 2003. The sale resulted in the liquidation of Silver
Blue.

On March 16, 2003,  the deed in lieu of  foreclosure  to Bryden Road, one of the
properties  owned by  Shiloh  Grove,  L.P.  ("Shiloh"),  was  transferred  to an
unaffiliated  third party.  The outstanding  mortgage  balance paid by the third
party on the day of transfer was $189,871  resulting in a gain of  approximately
$104,000, which was recognized during the fourth quarter ended March 15, 2004.

On January 23,  2003,  the property and the related  assets and  liabilities  of
Ludlam Gardens  Apartments,  LTD.  ("Ludlam") were sold to an unaffiliated third
party for a  purchase  price of  $3,900,000  resulting  a gain of  approximately
$959,000. The sale resulted in the liquidation of Ludlam.



                                       13
<PAGE>




                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 15, 2004
                                   (Unaudited)


On January 16,  2003,  the property and the related  assets and  liabilities  of
Dixie Apartment  Associates,  LTD.  ("Dixie") were sold to an unaffiliated third
party for a  purchase  price of  $1,300,000  resulting  a gain of  approximately
$327,000. The sale resulted in the liquidation of Dixie.


Note 4 - Commitments and Contingencies

Redwood Villa Associates, L.P.
------------------------------
Redwood Villa Associates,  L.P. ("Redwood") has sustained operating losses since
its  inception,   and  at  September  15,  2004  had  a  partners'   deficit  of
approximately  $1,573,000.  Redwood has been able to defer ground lease payments
that are due to a related party. The Local General Partner,  whenever  possible,
plans to reduce  operating  costs to achieve  profitable  operations  or provide
future capital contributions.

Autumn Park Associates, L.P.
----------------------------
As of September 15, 2004,  Autumn Park Associates,  L.P.'s ("Autumn Park") total
liabilities  exceeded its total assets by  approximately  $904,000.  Autumn Park
faces uncertain conditions regarding the deterioration and needed repairs of the
buildings,  tenants'  turnover  and  vacancies  and debt  service  requirements.
Subsequently  on  September  24, 2004,  the property and the related  assets and
liabilities of Autumn Park were sold. See note 5.

Bayridge Associates, L.P.
-------------------------
Bayridge Associates,  L.P.  ("Bayridge") has experienced  increased vacancy loss
and recurring  concessions  over the past year due to the continuing soft rental
market in the Portland,  OR area.  Management of the property changed during the
quarter.  They are  working to make all vacant  units  market  ready and hope to
improve occupancy during the next year.


Note 5 - Subsequent Event

On September 24, 2004,  the property and the related  assets and  liabilities of
Autumn Park were sold to an unaffiliated third party for $1,050,000 resulting in
a gain of  approximately  $1,925,000  which will be  recognized in the financial
statements of the  Partnership's  Form 10-Q for the quarter  ended  December 15,
2004.



                                       14
<PAGE>




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

Liquidity and Capital Resouces
------------------------------

The  Partnership's  capital has been  invested in 31 Local  Partnerships.  As of
September 15, 2004, the properties and the related assets and liabilities of six
Local Partnerships and the limited partnership interest in one Local Partnership
were sold. For a discussion of the sale of the Local Partnerships, see Note 3 to
the financial statements.

The Partnership's  primary source of funds is cash distributions from operations
of the Local  Partnerships in which the  Partnership  has invested.  Such funds,
although  minimal,  are available to meet the  obligations  of the  Partnership.
During the six months  ended  September  15, 2004 and 2003,  such  distributions
amounted to  approximately  $438,000  and  $78,000,  respectively.  In addition,
partnership  management  fees and  expense  reimbursements  owed to the  General
Partners  amounting to approximately  $8,492,000 and $8,001,000 were accrued and
unpaid as of September  15, 2004 and March 15, 2004,  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.

For the six months ended  September 15, 2004,  cash and cash  equivalents of the
Partnership and its  consolidated  Local  Partnerships  decreased  approximately
$527,000.  This  decrease  is  attributable  to  improvements  to  property  and
equipment  ($898,000),  principal repayment of mortgage notes ($1,301,000) and a
decrease in capitalization of consolidated subsidiaries attributable to minority
interest  ($100,000)  which  exceeded net cash provided by operating  activities
($782,000),  a decrease in cash held in escrow relating to investing  activities
($334,000)  and a net increase in due to local general  partners and  affiliates
relating  to  financing  activities  ($656,000).   Included  in  adjustments  to
reconcile the net loss to cash provided by operating  activities is depreciation
and amortization of approximately ($3,935,000) and gain on sale of properties of
($2,525,000).

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,  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.


                                       15
<PAGE>



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
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.
The Partnership complies with Statement of Financial Accounting Standards (SFAS)
No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets". 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).

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.  For the six months ended  September 15, 2004, the  Partnership has



                                       16
<PAGE>



recorded property and equipment net of accumulated depreciation of $6,076,671 as
held for sale.

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 of the Partnership, as well as the Local Partnerships,
remained fairly  consistent  during the three and six months ended September 15,
2004 and 2003,  excluding gain on sale of properties,  repairs and  maintenance,
insurance and capital events with respect to Ludlam,  Dixie, Silver Blue, Bryden
Road and Walnut,  which sold their respective  properties and the related assets
and liabilities (the "Sold Assets"). The results of operations for the three and
six months ended September 15, 2004 and 2003 consisted  primarily of the results
of the Partnership's investment in the consolidated Local Partnerships.

Rental income decreased approximately 6% for both the three and six months ended
September 15, 2004 as compared to the corresponding  periods in 2003.  Excluding
the Sold Assets,  rental income decreased 1% and 2% for the three and six months
ended  September  15,  2004 and  2003,  respectively,  primarily  due to a grant
received by one Local  Partnership  in 2003 and increased  vacancy and recurring
concessions at a second Local Partnership (See note 4).

Other income decreased  approximately $48,000 and $103,000 for the three and six
months  ended  September  15, 2004 as compared to the  corresponding  periods in
2003, primarily due to decreases relating to the Sold Assets.

General and administrative decreased approximately $346,000 and $345,000 for the
three and six months ended  September 15, 2004 as compared to the  corresponding
periods in 2003. Excluding the Sold Assets, general and administrative decreased
approximately  $216,000 and $101,000  primarily  due to the  termination  of two
employee positions at one Local Partnership.

Repairs and  maintenance  increased  approximately  $429,000  for the six months
ended  September  15,  2004 as  compared  to the  corresponding  period in 2003.
Excluding  the Sold  Assets,  repairs and  maintenance  increased  approximately
$570,000,  primarily due to increased  security,  general repairs and decorating



                                       17
<PAGE>



expense at one Local Partnership,  increased repairs and overtime expense due to
a fire at a second Local  Partnership and increased  repair contracts at several
other Local Partnerships.

Insurance  increased  approximately  $31,000  and  $21,000 for the three and six
months  ended  September  15, 2004 as compared to the  corresponding  periods in
2003. Excluding the Sold Assets,  insurance increased  approximately $64,000 and
$100,000,  primarily  due to an  increase  in  insurance  premiums  at the Local
Partnerships.

Operating  and  financial  decreased  approximately  $219,000  and  $283,000 and
$376,000 and $492,000 for the three and six months ended  September  15, 2004 as
compared  to the  corresponding  periods  in 2003,  primarily  due to  decreases
relating to the Sold Assets.

Gains on sale of  properties  will  continue  to  fluctuate  as a result  of the
disposition of properties.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

The Partnership does not have any 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  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.



                                       18
<PAGE>



                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings - None

Item 2. Changes in 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 and Reports on Form 8-K

       (a) Exhibits

       (3A) Limited Partnership  Agreement of Liberty Tax Credit Plus L.P. dated
October 9, 1987**

       (3B) Form of Amended and Restated Agreement of Partnership of Liberty Tax
Credit Plus L.P. (attached to Prospectus as Exhibit A)**

       (3C) Certificate of Limited  Partnership of Liberty Tax Credit Plus L.P.,
together with amendments filed September 14, 1987 and October 8, 1987**

       (10A) Form of Subscription  Agreement  (attached to Prospectus as Exhibit
B)**

       (10B)  Form of  Purchase  Agreement  for  purchase  of Local  Partnership
Interests**

       (10C) Form of Local Partnership Agreement**

       (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).

       (b)   Reports on Form 8-K - None

        ** Incorporated herein as an exhibit by reference to exhibits filed with
Amendment No. 1 to Liberty Tax Credit Plus L.P.'s Registration Statement on Form
S-11, file No. 33-15479.


                                       19
<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 21, 2004
                           By:/S/ ALAN P. HIRMES
                              ------------------
                              Alan P. Hirmes,
                              President and Chief Executive
                              Officer
                              (Principal Executive and Financial
                              Officer)

Date: October 21, 2004
                           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 21, 2004
                              By:  /S/ ALAN P. HIRMES
                                   ------------------
                                   Alan P. Hirmes,
                                   President and Chief
                                   Executive Officer
                                   (Principal Executive and
                                   Financial Officer)

Date: October 21, 2004
                              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"), hereby certify that:

     1.  I have  reviewed  this  quarterly  report on Form  10-Q for the  period
         ending September 15, 2004 of the Partnership;

     2.  Based on my  knowledge,  this  quarterly  report  does not  contain any
         untrue  statement of a material  fact or omit to state a material  fact
         necessary  in  order  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 quarterly report;

     3.  Based on my knowledge,  the financial  statements,  and other financial
         information  included in this quarterly  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 quarterly 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 I
         have:

         a) designed  such  disclosure  controls and  procedures  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 quarterly report
         was 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; and

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

         d) disclosed in this quarterly  report any change in the  Partnership's
         internal  control over  financial  reporting  that occurred  during the
         period ending  September 15, 2004 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  controls 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 controls over financial reporting.



                          By: /S/ ALAN P. HIRMES
                              ------------------
                              Alan P. Hirmes
                              Principal Executive Officer and
                              Principal Financial Officer
                              October 21, 2004


<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, 2004 as filed
with the Securities and Exchange  Commission 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 21, 2004