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 June 15, 2007


                                       OR


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



                         COMMISSION FILE NUMBER 0-17015

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



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

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



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


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


     Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer. See definition of "accelerated
filer and large  accelerated  filer" in Rule 12b-2 or the Exchange  Act.  (Check
one):

Large accelerated filer [ ]    Accelerated filer [ ]   Non-accelerated filer [X]

     Indicate  by check mark  whether  the  registrant  is a shell  company  (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

<PAGE>

                         PART I - Financial Information

Item 1. Financial Statements

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
<TABLE>
<CAPTION>
                                                                            June 15,        March 15,
                                                                              2007            2007
                                                                          ------------    ------------
                                                                           (Unaudited)     (Audited)
<S>                                                                       <C>             <C>
                                     ASSETS

Operating assets

  Property and equipment, at cost, net of accumulated depreciation of
    $38,941,469 and $42,785,507, respectively                             $ 25,741,191    $ 29,093,468
  Cash and cash equivalents                                                  5,720,010       6,046,635
  Cash held in escrow                                                        2,812,793       2,940,919
  Accounts receivable - tenants                                                290,390         208,079
  Deferred costs, net of accumulated amortization of $435,143 and
    $426,439, respectively                                                     722,589         727,459
  Other assets                                                               2,075,800       2,176,261
                                                                          ------------    ------------

Total operating assets                                                      37,362,773      41,192,821
                                                                          ------------    ------------

Assets from discontinued operations (Note 5)
  Property and equipment held for sale, net of accumulated depreciation
     of $8,410,754 and $9,605,003, respectively                              5,350,321       5,252,734
  Net assets held for sale                                                   1,547,150       1,210,221
                                                                          ------------    ------------
Total assets from discontinued operations                                    6,897,471       6,462,955
                                                                          ------------    ------------

Total assets                                                              $ 44,260,244    $ 47,655,776
                                                                          ============    ============

                        LIABILITIES AND PARTNERS' DEFICIT

Operating liabilities

  Mortgage notes payable                                                  $ 34,782,290    $ 38,047,957
  Accounts payable                                                           2,650,839       4,890,335
  Accrued interest payable                                                   5,289,052       6,616,457
  Security deposits payable                                                    161,185         194,026
  Due to local general partners and affiliates                              16,365,835      16,096,222
  Due to general partners and affiliates                                     2,834,286       2,724,952
                                                                          ------------    ------------

Total operating liabilities                                                 62,083,487      68,569,949
                                                                          ------------    ------------

Liabilities from discontinued operations (Note 5)
  Mortgage notes payable of assets held for sale                             7,681,181       4,507,279
  Net liabilities held for sale (including minority interest)                1,640,595          84,174
                                                                          ------------    ------------
Total liabilities from discontinued operations                               9,321,776       4,591,453
                                                                          ------------    ------------

Total liabilities                                                           71,405,263      73,161,402
                                                                          ------------    ------------

Minority interests                                                            (551,759)       (548,799)
                                                                          ------------    ------------

Commitments and contingencies (Note 6)

Partners' deficit:
  Limited partners (15,987.5 BACs issued and outstanding)                  (30,843,421)    (29,223,352)
  General partners                                                           4,250,161       4,266,525
                                                                          ------------    ------------

Total partners' deficit                                                    (26,593,260)    (24,956,827)
                                                                          ------------    ------------

Total liabilities and partners' deficit                                   $ 44,260,244    $ 47,655,776
                                                                          ============    ============
</TABLE>


          See accompanying notes to consolidated financial statements.

                                       2
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                               Three Months Ended
                                                                     June 15,
                                                            --------------------------
                                                                2007           2006*
                                                            -----------    -----------
<S>                                                         <C>            <C>
Operations:

Revenues
Rental income                                               $ 2,533,509    $ 2,621,937
Other                                                           161,204         77,522
                                                            -----------    -----------

Total revenues                                                2,694,713      2,699,459
                                                            -----------    -----------

Expenses
General and administrative                                      598,266        546,746
General and administrative-related parties (Note 2)             239,901        297,323
Repairs and maintenance                                         746,153        601,132
Operating and other                                             643,385        767,519
Taxes                                                           132,517        128,474
Insurance                                                       154,890        151,570
Financial                                                       889,443        906,309
Depreciation and amortization                                   566,616        581,658
                                                            -----------    -----------

Total expenses from operations                                3,971,171      3,980,731
                                                            -----------    -----------

Loss from operations before minority interest                (1,276,458)    (1,281,272)

Minority interest in loss of subsidiaries from operations         7,026          1,751
                                                            -----------    -----------

Loss from operations                                         (1,269,432)    (1,279,521)

Discontinued operations:
Loss from discontinued operations (including loss on
  sale of properties) (Note 5)                                 (367,001)      (805,863)
                                                            -----------    -----------
Net loss                                                    $(1,636,433)   $(2,085,384)
                                                            ===========    ===========

Loss from operations - limited partners                     $(1,256,738)   $(1,266,726)
Loss from discontinued operations (including loss on
  sale of properties) - limited partners                       (363,331)      (797,804)
                                                            -----------    -----------
Net loss - limited partners                                 $(1,620,069)   $(2,064,530)
                                                            ===========    ===========

Number of BACs outstanding                                     15,987.5      15,987.50
                                                            ===========    ===========

Loss from operations per BAC                                $    (78.61)   $    (79.23)
Loss from discontinued operations per BAC                        (22.72)        (49.90)
                                                            -----------    -----------

Net loss per BAC                                            $   (101.33)   $   (129.13)
                                                            ===========    ===========
</TABLE>

 *  Reclassified for comparative purposes

          See accompanying notes to consolidated financial statements.

                                       3
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
         Consolidated Statement of Changes in Partners' (Deficit) Equity
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                Limited         General
                                                  Total         Partners        Partner
                                              ------------    ------------    ------------
<S>                                           <C>             <C>             <C>
Partners' (deficit) equity - March 16, 2007   $(24,956,827)   $(29,223,352)   $  4,266,525

Net loss                                        (1,636,433)     (1,620,069)        (16,364)
                                              ------------    ------------    ------------

Partners' (deficit) equity - June 15, 2007    $(26,593,260)   $(30,843,421)   $  4,250,161
                                              ============    ============    ============
</TABLE>

           See accompanying notes to consolidated financial statements

                                       4
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (decrease) in Cash and Cash Equivalents
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                               Three Months Ended
                                                                                    June 15,
                                                                           --------------------------
                                                                              2007            2006
                                                                           -----------    -----------
<S>                                                                        <C>            <C>
Net loss                                                                   $(1,636,433)   $(2,085,384)

Adjustments to  reconcile  net loss to net cash (used in)
  provided by operating activities:
  Loss on sale of properties                                                    23,644         11,000
  Depreciation and amortization                                                697,248      1,099,261
  Minority interest in income (loss) of subsidiaries                           279,790         (4,001)
  (Increase) decrease in accounts receivable - tenants                        (104,996)       147,531
  Decrease (increase) in other assets                                           21,897        (20,965)
  Increase in accounts payable                                                 475,399        972,955
  Increase in accrued interest payable                                          19,933        380,361
  Decrease in security deposits payable                                             (5)       (23,521)
  Increase in due to general partners and affiliates                           118,106        251,009
  (Increase) decrease in cash held in escrow                                  (413,925)        52,337
                                                                           -----------    -----------

Net cash (used in) provided by operating activities                           (519,342)       780,583
                                                                           -----------    -----------

Cash flows from investing activities:

  Decrease in cash held in escrow                                              171,595         93,877
  Proceeds from sale of investments                                          3,435,000              0
  Costs paid relating to sale of properties                                   (458,750)       (11,000)
  Improvements to property and equipment                                       (38,565)       (62,891)
                                                                           -----------    -----------

Net cash provided by investing activities                                    3,109,280         19,986
                                                                           -----------    -----------

Cash flows from financing activities:

  Repayments of mortgage notes                                                 (91,765)    (1,007,277)
  Increase in due to local general partners and affiliates                     302,376        250,698
  Decrease in due to local general partners and affiliates                      (6,902)       (62,632)
  Increase in deferred cost                                                     (3,834)             0
  Decrease in capitalization of consolidated subsidiaries
    attributable to minority interest                                         (180,331)        (7,291)
  Distributions                                                             (2,777,970)             0
                                                                           -----------    -----------

  Net cash provided by (used in) financing activities                       (2,758,426)      (826,502)
                                                                           -----------    -----------

  Net decrease in cash and cash equivalents                                   (168,488)       (25,933)

  Cash and cash equivalents at beginning of period                           6,390,501      4,006,542
                                                                           -----------    -----------

  Cash and cash equivalents at end of period*                              $ 6,222,013    $ 3,980,609
                                                                           ===========    ===========

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

  Proceeds from sale of investments - net                                  $(2,976,250)   $         0
  Decrease in property and equipment, net of accumulated depreciation        2,605,211              0
  Decrease in cash held in escrow                                              265,163              0
  Decrease in rents receivable                                                   4,393              0
  Decrease in other assets                                                      14,085              0
  Increase in accounts payable                                                 130,538              0
  Decrease in security deposits payable                                        (19,496)             0
</TABLE>

*    Cash  and  cash  equivalents,   end  of  period,  includes  cash  and  cash
     equivalents  from   discontinued   operations  of  $502,003  and  $145,513,
     respectively.

           See accompanying notes to consolidated financial statements


                                       5
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 15, 2007
                                   (Unaudited)


Note 1 - General

The consolidated  financial  statements for the three months ended June 15, 2007
and  2006,   include  the  accounts  of  Liberty  Tax  Credit  Plus  L.P.   (the
"Partnership") and nine and sixteen 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 June
15. All subsidiary  partnerships  have fiscal quarters ending March 31. Accounts
of the subsidiary partnerships have been adjusted for intercompany  transactions
from April 1 through June 15. The Partnership's quarter ends on June 15 in order
to allow adequate time for the subsidiary  partnerships' financial statements to
be  prepared  and  consolidated.  The books and records of the  Partnership  are
maintained on the accrual basis of  accounting,  in accordance  with  accounting
principles generally accepted in the United States of America ("GAAP").

In the opinion of the General  Partners,  the accompanying  unaudited  financial
statements  contain  all  adjustments   (consisting  only  of  normal  recurring
adjustments)   necessary  to  present  fairly  the  financial  position  of  the
Partnership  as of June 15, 2007 and March 15, 2007,  the results of  operations
and cash flows for the three months ended June 15, 2007 and 2006.  However,  the
operating  results and cash flows for the three  months  ended June 15, 2007 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, 2007.

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 and $95,000 for the
three months ended June 15, 2007 and 2006, respectively.  In consolidation,  all
subsidiary  partnership losses are included in the Partnership's capital account
except for losses allocated to minority interest capital.


Note 2 - Related Party Transactions

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

The costs incurred to related parties from operations for the three months ended
June 15, 2007 and 2006 were as follows:
<TABLE>
<CAPTION>
                                                          Three Months Ended
                                                              June 15,
                                                         -------------------
                                                           2007       2006*
                                                         --------   --------
<S>                                                      <C>        <C>
Partnership management fees (a)                          $119,625   $154,500
Expense reimbursement (b)                                  37,259     59,965
Local administrative fee (d)                                2,500      2,500
                                                         --------   --------
Total general and administrative-General Partners         159,384    216,965
                                                         --------   --------
Property management fees incurred to affiliates of the
  local general partners (c)                               80,517     80,358
                                                         --------   --------
Total general and administrative-related parties         $239,901   $297,323
                                                         ========   ========
</TABLE>

* Reclassified for comparative purpose.

                                       6
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 15, 2007
                                   (Unaudited)


The costs incurred to related parties from discontinued operations for the three
months ended June 15, 2007 and 2006 were as follows:
<TABLE>
<CAPTION>
                                                          Three Months Ended
                                                               June 15,
                                                         -------------------
                                                           2007       2006*
                                                         --------   --------
<S>                                                      <C>        <C>
Local administrative fee (d)                             $    625   $  3,943
                                                         --------   --------
Total general and administrative-General Partners             625      3,943
                                                         --------   --------
Property management fees incurred to affiliates of the
  local general partners (c)                               93,178     87,304
                                                         --------   --------
Total general and administrative-related parties         $ 93,803   $ 91,247
                                                         ========   ========
</TABLE>

* 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's  Amended  and  Restated  Agreement  of
Limited Partnership ("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.  Unpaid  partnership
management  fees for any  year  will be  accrued  without  interest  and will be
payable from working capital  reserves or to the extent of available funds after
the Partnership has made  distributions to the limited partners and BACs holders
of sale or refinancing  proceeds equal to their original  capital  contributions
plus a 10% priority  return thereon (to the extent not  theretofore  paid out of
cash flow).  During the year ended March 15, 2007,  management deemed the unpaid
partnership  management fees that were related to sold properties  uncollectible
and wrote off approximately $5,251,000,  resulting in a non-cash General Partner
contribution of the same amount. Partnership management fees owed to the General
Partners  amounting to approximately  $2,694,000 and $2,574,000 were accrued and
unpaid as of June 15, 2007 and March 15, 2007, 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
$33,000  and $35,000  were  accrued and unpaid as of June 15, 2007 and March 15,
2007, respectively.

(c)  Property  management  fees  incurred  by  the  subsidiary  partnerships  in
operations amounted to $237,509 and $310,041 for the three months ended June 15,
2007 and 2006, respectively.  Of these fees, $173,695 and $167,662 were incurred
to affiliates of the local general  partners,  which include $93,178 and $87,304
of fees relating to discontinued operations.

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


Note 3 - Sale of Properties

The Partnership is currently in the process of disposing of its investments.  As
of June 15, 2007, the Partnership has disposed of twenty-three of its thirty-one
original  investments  and  entered  into  an  agreement  to  sell  its  limited
partnership  interest in one Local  Partnership  and one Local  Partnership  has
entered  into  agreement  to sell  its  property  and  the  related  assets  and
liabilities (see Note 4).

On May 11, 2007, the property and the related assets and  liabilities of Charles
Drew Court Associates,  L.P. ("Charles Drew") were sold to an unaffiliated third
party  purchaser  for a sales  price of  $3,435,000.  The  Partnership  received
$2,765,000  as a  distribution  from this  sale  after  the  repayment  of other
liabilities,   closing  costs  and   distributions   to  minority   interest  of
approximately  $670,000.  The sale resulted in a loss of approximately  $24,000,
resulting  from the  write-off  of the basis in the  property at the date of the
sale.

On June 5,  2006,  the  property  and the  related  assets  and  liabilities  of
Willoughby/Wycoff  Housing  Associates,  L.P.  ("Willoughby")  were  sold  to an
unaffiliated  third party purchaser for a sales price of $4,800,000.  There were
no  distributions  from  this sale  after  the  repayment  of  mortgages,  other
liabilities and closing costs of approximately $4,800,000.  The sale resulted in
a gain of approximately $2,785,000,  resulting from the write-off of the deficit
basis  in the  property  at the date of the sale  and was  recorded  during  the
quarter ended  September  15, 2006.  An adjustment to the gain of  approximately
$(756,000) was recorded during the quarter ended March 15, 2007, resulting in an
overall gain of approximately $2,029,000.

On May 1, 2006,  the property and the related  assets and  liabilities  of Grand
Concourse  Housing  Associates,   L.P.  ("Grand  Concourse")  were  sold  to  an
unaffiliated  third  party  purchaser  for a  sales  price  of  $4,937,500.  The
Partnership  received  $797,203  as a  distribution  from  this  sale  after the
repayment of mortgages,  other  liabilities,  closing costs and distributions to

                                       7
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 15, 2007
                                   (Unaudited)


minority  interest of approximately  $4,140,000.  The sale resulted in a gain of
approximately  $2,104,000,  resulting from the write-off of the deficit basis in
the property at the date of the sale and was recorded  during the quarter  ended
September  15, 2006. An  adjustment  to the gain of  approximately  $383,000 was
recorded  during the quarter ended March 15, 2007,  resulting in an overall gain
of approximately $2,487,000.

On May 1, 2006, the property and the related assets and liabilities of Concourse
Artists  Housing  Associates,   L.P.  ("Concourse  Artists")  were  sold  to  an
unaffiliated  third  party  purchaser  for a  sales  price  of  $1,797,500.  The
Partnership  received  $278,553  as a  distribution  from  this  sale  after the
repayment of mortgages,  other  liabilities,  closing costs and distributions to
minority  interest of approximately  $1,519,000.  The sale resulted in a gain of
approximately $672,000, resulting from the write-off of the deficit basis in the
property  at the date of the sale and was  recorded  during  the  quarter  ended
September  15, 2006.  An  adjustment  to the gain of  approximately  $28,000 was
recorded  during the quarter ended March 15, 2007,  resulting in an overall gain
of approximately $700,000.

On May 1, 2006,  the property and the related  assets and  liabilities  of Robin
Housing  Associates,  L.P. ("Robin Housing") were sold to an unaffiliated  third
party  purchaser  for a sales  price of  $7,265,000.  The  Partnership  received
$1,743,907  as a  distribution  from this sale after the repayment of mortgages,
other  liabilities,  closing  costs and  distributions  to minority  interest of
approximately  $5,521,000.   The  sale  resulted  in  a  gain  of  approximately
$3,115,000, resulting from the write-off of the deficit basis in the property at
the date of the sale and was recorded  during the quarter  ended  September  15,
2006. An adjustment to the gain of  approximately  $219,000 was recorded  during
the quarter ended March 15, 2007,  resulting in an overall gain of approximately
$3,334,000.


Note 4 - Assets Held for Sale

On April 26, 2007, the Partnership entered into an agreement to sell its limited
partnership  interest  in West Kinney  Associates,  L.P.  ("West  Kinney") to an
affiliate  of the Local  General  Partner for a sales price of $600,000  and the
assumption of the  outstanding  mortgages  and related  accrued  interest  which
amounted to approximately $4,513,000 on March 31, 2007. The sales documents have
been  executed  and the  initial  deposit  funds are being held in  escrow.  The
closing is expected to occur by the end of 2007.  No assurance can be given that
the sale will  actually  occur.  West  Kinney is being held as an asset held for
sale as of June 15,  2007.  As of March 31,  2007,  West Kinney had property and
equipment,  at cost, of approximately  $7,187,000,  accumulated  depreciation of
approximately $4,444,000 and mortgage debt of approximately $3,178,000.

On September 28, 2006, Greenleaf Associates,  L.P.  ("Greenleaf") entered into a
purchase and sale  agreement  to sell the  property  and the related  assets and
liabilities  to an  unaffiliated  third  party  purchaser  for a sales  price of
$5,264,177  including the assumption of the mortgage  debt. The sales  documents
have been executed and the initial  deposit funds are being held in escrow.  The
closing is  expected to occur in the  quarter  ending  September  15,  2007.  No
assurance  can be given that the sale will  actually  occur.  Greenleaf has been
classified as an asset held for sale as of the quarter ended  December 15, 2006.
As of March  31,  2007,  Greenleaf  had  property  and  equipment,  at cost,  of
approximately  $6,479,000,  accumulated depreciation of approximately $3,923,000
and mortgage debt of approximately $4,503,000.


Note 5 - Discontinued Operations

The following table summarizes the financial  position of the Local Partnerships
that are classified as  discontinued  operations  because the  respective  Local
Partnerships  were  classified  as assets  held for sale.  As of June 15,  2007,
Charles Drew,  Concourse  Artists,  Grand Concourse,  Greenleaf,  Robin Housing,
United  Penn,  Willoughby  and  West  Kinney  were  classified  as  discontinued
operations on the  consolidated  balance sheets.  As of March 15, 2007,  Alameda
Towers,  Concourse  Artists,  Charles Drew,  Grand Concourse,  Greenleaf,  Robin
Housing,   Shiloh  Grove,   United  Penn  and  Willoughby   were  classified  as
discontinued operations on the consolidated balance sheets.

                                       8
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 15, 2007
                                   (Unaudited)


Consolidated Balance Sheets of Discontinued Operations:
<TABLE>
<CAPTION>
                                                   June 15,      March 15,
                                                     2007          2007
                                                 -----------    -----------
<S>                                              <C>            <C>
Assets
  Property and equipment, net of accumulated
    depreciation of $8,409,059 and $9,605,003,
    respectively                                 $ 5,350,321    $ 5,252,734
  Cash and cash equivalents                          502,003        343,866
  Cash held in escrow                                827,627        722,334
  Deferred costs, net of accumulated
    amortization of $6,841 and $6,341,
    respectively                                      41,945         42,445
  Due from general partners and affiliates             8,772          8,772
  Other assets                                       166,803         92,804
                                                 -----------    -----------
Total assets                                     $ 6,897,471    $ 6,462,955
                                                 ===========    ===========

Liabilities
  Mortgage notes payable                         $ 7,681,181    $ 4,507,279
  Accounts payable and other liabilities           1,620,439        192,298
  Due to local general partners and affiliates       148,219        122,358
  Minority interest                                 (128,063)      (230,482)
                                                 -----------    -----------
Total liabilities                                $ 9,321,776    $ 4,591,453
                                                 ===========    ===========
</TABLE>


The  following  table   summarizes  the  results  of  operations  of  the  Local
Partnerships  that are  classified  as  discontinued  operations.  For the three
months ended June 15, 2007,  Charles Drew which was sold during the period,  and
Greenleaf and West Kinney,  which were  classified as assets held for sale, were
all  classified  as  discontinued   operations  on  the  consolidated  financial
statements.  For the three  months  ended June 15,  2006 and in order to present
comparable results for the three months ended June 15, 2007,  Concourse Artists,
Grand Concourse, Robin Housing and Willoughby which were sold during the period,
and Alameda Towers, Charles Drew, Greenleaf,  Shiloh Grove, United Penn and West
Kinney  were all  classified  as  discontinued  operations  on the  consolidated
financial statements.

                                       9
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 15, 2007
                                   (Unaudited)


Consolidated Statements of Discontinued Operations:
<TABLE>
<CAPTION>
                                                                  Three Months Ended
                                                                       June 15,
                                                              --------------------------
                                                                 2007           2006*
                                                              -----------    -----------
<S>                                                           <C>            <C>
Revenues:

Rental income                                                 $   724,975    $ 2,811,887
Other                                                               6,570         52,196
Loss on sale of properties                                        (23,644)       (11,000)
                                                              -----------    -----------
Total revenue                                                     707,901      2,853,083
                                                              -----------    -----------

Expenses:

General and administrative                                         91,981        620,192
General and administrative-related parties (Note 2)                93,803         91,247
Repairs and maintenance                                           150,658        932,951
Operating                                                         152,507        676,940
Taxes                                                              42,176        102,026
Insurance                                                          28,657        173,891
Interest                                                           97,672        546,346
Depreciation and amortization                                     130,632        517,603
                                                              -----------    -----------

Total expenses                                                    788,086      3,661,196
                                                              -----------    -----------

Loss before minority interest                                     (80,185)      (808,113)
Minority interest in loss of subsidiaries from discontinued
  operations                                                     (286,816)         2,250
                                                              -----------    -----------
Net loss from discontinued operations (including loss on
  sale of properties)                                         $  (367,001)   $  (805,863)
                                                              ===========    ===========

Loss-limited partners from discontinued operations
  (including loss on sale of properties)                      $  (363,331)   $  (797,804)
                                                              ===========    ===========

Number of BACs outstanding                                       15,987.5      15,987.50
                                                              ===========    ===========

Loss from discontinued operations (including loss on
  sale of properties) per BAC                                 $    (22.72)   $    (49.90)
                                                              ===========    ===========


* Reclassified for comparative purposes

<CAPTION>
                                                                  Three Months Ended
                                                                       June 15,
                                                              --------------------------
                                                                 2007           2006*
                                                              -----------    -----------
<S>                                                           <C>            <C>
Cash flows from Discontinued Operations:

Net cash (used in) provided by operating activities           $  (686,436)   $   726,101
                                                              -----------    -----------
Net cash provided by (used in) investing activities           $   463,112    $  (107,280)
                                                              -----------    -----------
Net cash used in financing activities                         $   (32,726)   $  (917,372)
                                                              -----------    -----------
</TABLE>

* Reclassified for comparative purposes.


Note 6 - Commitments and Contingencies

a)  Subsidiary Partnerships - Going Concern

Magnolia Arms Associates, LTD ("Magnolia Arms")
-----------------------------------------------
Magnolia  Arms has not made  its  mortgage  payments  since  August  2005 due to
operating  deficits  and  is  currently  in  default.  The  mortgagee  can  take
possession of the Property and other  collateralized  assets,  collect the rents
directly from the tenants and foreclose on the Property and other collateralized
assets.  There can be no assurance  that  Magnolia Arms will be able to cure the
default.  The mortgage payable is currently due as of March 31, 2007. Because of
these  circumstances,  there is substantial  doubt  regarding  whether the Local
Partnership  can continue as a going concern.  The  Partnership's  investment in

                                       10
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 15, 2007
                                   (Unaudited)


Magnolia  Arms was written down to zero by prior years'  losses and the minority
interest  was  approximately  $26,000 and $33,000 at June 15, 2007 and March 31,
2007,  respectively.  The net loss after  minority  interest for  Magnolia  Arms
amounted to  approximately  $317,000 and $36,000 for the quarters ended June 15,
2007 and  2006,  respectively.  Magnolia  Arms'  Compliance  Period  ended as of
December 31, 2003.

Quality Hill Historic District-Phase II-A, L.P. ("Quality Hill")
----------------------------------------------------------------
The financial  statements  of Quality Hill have been  prepared  assuming it will
continue  as a going  concern.  Quality  Hill has had  negative  cash flows from
operating  activities  for the past  several  years.  Quality  Hill is trying to
obtain  extensions for its mortgage  notes payable,  and is not expected to have
operating  cash flow to meet the  financial  obligations  of its mortgage  notes
coming  due.  This  situation  raises  substantial  doubt  about its  ability to
continue as a going concern.

During  2005,  Quality  Hill  entered  into a  Modification  Agreement  with the
Missouri  Housing  Development  Commission  ("MHDC") which extended the maturity
date of the permanent  nonrecourse  financing for the Quality Hill-Cordova Hotel
Apartments,  which is one of the two  projects  included  in  Quality  Hill,  to
December  2006.  The  balance  of this note as of March 31,  2007 was  $405,076.
Quality Hill has filed for another  extension;  however,  no extension  has been
granted as of the filing date of this Form 10-Q.

During 2005,  Quality Hill entered into  negotiations  with both the Hall Family
Foundation  of  Kansas   ("Foundation")   and  Kansas  City  Downtown   Minority
Development  Corporation  ("DMDC")  to extend  the  maturity  dates of each note
payable to  December  2006.  The  combined  balance of the  Foundation  notes is
$2,339,108 and was due in full in December 2005 and the combined  balance of the
DMDC notes was $735,000  ($225,000 was due in December 2005 and $510,000 was due
in May 2005).  In February  2006,  Quality Hill Received a one year extension on
the  Foundation  note to December 31,  2006.  Quality Hill has filed for another
extension;  however, no extension has been granted as of the filing date of this
Form 10-Q.

The total of these three notes,  $3,479,184,  is included as a current liability
in mortgage notes payable.

These items raise  substantial doubt about Quality Hill's ability to continue as
a going concern.  The Partnership's  investment in Quality Hill has been written
down to zero by prior years' losses and the minority  interest balance was $0 at
both June 15, 2007 and March 31, 2007. The net loss after minority  interest for
Quality  Hill  amounted to  approximately  $91,000 and $86,000 for the  quarters
ended June 15, 2007 and 2006,  respectively.  Quality Hill's  Compliance  Period
ended as of December 31, 2004.

b)  Lease Commitment

None

c)  Uninsured Cash and Cash Equivalents

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

d)  Cash Distributions

Cash distributions from the Local Partnerships to the Partnership are restricted
by the provisions of the respective  Local  Partnership  agreements  and/or HUD.
Such cash distributions are typically made from surplus cash flow.

e)  Tax Credits

A portion of the Tax Credits  could be subject to  recapture  in future years if
(i) a Local Partnership ceases to meet qualification requirements, (ii) there is
a decrease in the  qualified  basis of the Local  Partnership  property or (iii)
there is a reduction  in the Local  Partnership  interest in the property at any
time during the 15-year  period (the  "Compliance  Period")  that began with the
first  tax year of the  period  of the  Partnership's  entitlement  to claim Tax
Credits (for each Property,  ten years from the date of investment or, if later,
the date the  Property  is placed in service is  referred  to herein as the "Tax
Credit  Period").  As of December 31, 2003, the Tax Credit Period for each Local
Partnership had expired.  The Compliance  Periods  continue through December 31,
2008 with respect to the  Properties  depending upon when the Tax Credit Periods
commenced.

f)  Other

Greenleaf Associates, L.P. ("Greenleaf")
----------------------------------------
A former tenant brought suit against  Greenleaf's on-site manager for damages of
$100,000. An amended complaint does not specify an amount of damages. The former
tenant claims  violation of the 14th  Amendment,  false arrest,  obstruction  of
justice  and civil  conspiracy.  Management  intends to  vigorously  contest the
matter.  An evaluation of the likelihood of an unfavorable  outcome and estimate
of the  amount  of  possible  loss  cannot  be made at this  early  stage of the
proceedings.

                                       11
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 15, 2007
                                   (Unaudited)


State Street 86 Associates, L.P. ("State Street")
-------------------------------------------------
The Camden  Redevelopment  Agency has  designated  the  Cramer  Hill  Waterfront
Redevelopment  Agency as a  possible  future  redevelopment  project.  This area
includes Centennial Village, a 200-unit apartment project that State Street owns
and operates.  There have been various lawsuits involving this redevelopment and
at this time there is no further  information  as to whether or not the Property
will be purchased or acquired by eminent domain.

The  Partnership  is subject to the risks  incident to potential  losses arising
from the management and ownership of improved real estate.  The  Partnership can
also be affected by poor economic  conditions  generally;  however, no more than
25%  of the  properties  are  located  in  any  single  state.  There  are  also
substantial  risks  associated  with  owning  properties   receiving  government
assistance,  for example the possibility that Congress may not appropriate funds
to enable HUD to make rental assistance payments. HUD also restricts annual cash
distributions  to partners  based on operating  results and a percentage  of the
owners'  equity  contribution.  As of June  15,  2007,  there  are  seven  Local
Partnerships  subsidized by HUD. The  Partnership  cannot sell or  substantially
liquidate its investments in subsidiary  partnerships during the period that the
subsidy agreements are in existence, without HUD's approval.  Furthermore, there
may not be market  demand for  apartments  at full market  rents when the rental
assistance contracts expire.

                                       12
<PAGE>

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

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

The   Partnership's   capital  was  originally   invested  in  thirty-one  Local
Partnerships.  As of June 15, 2007,  the  properties  and the related assets and
liabilities of fifteen Local Partnerships and the limited  partnership  interest
in eight Local  Partnerships  were sold.  For a discussion of these sales of the
Local Partnerships see Note 3. In addition, as of June 15, 2007, the Partnership
entered into an agreement to sell its limited partnership  interest in one Local
Partnership  and one Local  Partnership  has entered into  agreement to sell its
property and the related assets and liabilities (see Note 4).

Off Balance Sheet Arrangements
------------------------------
The Partnership has no off-balance sheet arrangements.

Tabular disclosure of Contractual Obligations
---------------------------------------------
The Partnership  annually discloses in Item 7 to the financial statements in the
Partnership's  Annual Report on Form 10-K for the year ended March 15, 2007, the
Partnership's  commitments to make future payments under its debt agreements and
other contractual obligations.  There are no material changes to such disclosure
or amounts as of June 15, 2007.

Short-Term
----------

The  Partnership's  primary  sources  of funds  included:  (i)  working  capital
reserves;  (ii)  interest  earned on the working  capital  reserves;  (iii) cash
distributions from operations of the Local Partnerships; and (iv) sales proceeds
and  distributions.  Such funds are  available  to meet the  obligations  of the
Partnership. During the three months ended June 15, 2007 and 2006, distributions
from operations of the Local Partnerships  amounted to approximately $60,000 and
$17,000, respectively. Additionally, during the three months ended June 15, 2007
and 2006,  the  Partnership  received  approximately  $2,765,000  and $2,690,000
distributions of proceeds from sales.

For the three  months  ended June 15,  2007,  cash and cash  equivalents  of the
Partnership and its  consolidated  Local  Partnerships  decreased  approximately
$168,000.  This  decrease  is  attributable  to a net  cash  used  in  operating
activities ($519,000),  improvements to property and equipment ($39,000),  costs
paid relating to sale of  properties  ($459,000),  repayments of mortgage  notes
($92,000),  an increase in deferred cost ($4,000),  a decrease in capitalization
of consolidated  subsidiaries  attributable to minority interest  ($180,000) and
distributions  ($2,778,000)  which  exceeded a  decrease  in cash held in escrow
relating to investing activities  ($172,000),  proceeds from sale of investments
($3,435,000)  and a net increase in due to local general partners and affiliates
relating  to finance  activities  ($295,000).  Included  in the  adjustments  to
reconcile net loss to net cash used in operating  activities is depreciation and
amortization  of  approximately  ($697,000)  and a loss on  sale  of  properties
($24,000).

Total  expenses  for the three  months  ended June 15, 2007 and 2006,  excluding
depreciation and amortization,  interest and general and  administrative-related
parties, totaled $2,275,211 and $2,195,441, respectively.

Accounts  payable as of June 15, 2007 and March 15, 2007,  were  $2,650,839  and
$4,890,335,  respectively. Accounts payable are short term liabilities which are
expected to be paid from operating cash flows,  working capital  balances at the
Local  Partnership   level,  Local  General  Partner  advances  and  in  certain
circumstances  advances from the Partnership.  The Partnership  believes it (and
the  applicable  Local  Partnerships)  has  sufficient  liquidity and ability to
generate cash and to meet  existing and known or  reasonably  likely future cash
requirements  over both the short and long term. In addition,  accounts  payable
from discontinued  operations,  as of June 15, 2007 and March 15, 2007,  totaled
$163,132 and $95,669, respectively.

Accrued  interest  payable as of June 15, 2007 and March 15, 2007 was $5,289,052
and $6,616,457,  respectively.  Accrued interest payable  represents the accrued
interest on all mortgage  loans,  which  include  primary and  secondary  loans.
Certain  secondary  loans have  provisions such that interest is accrued but not
payable until a future date. The Partnership  anticipates the payment of accrued
interest  on the  secondary  loans  (which  make up the  majority of the accrued
interest payable amount and which have been accumulating since the Partnership's
investment  in the  respective  Local  Partnership)  will  be made  from  future
refinancings   or  sales   proceeds  of  the  respective   Local   Partnerships.
Furthermore,  each Local Partnership's  mortgage notes are collateralized by the
land and buildings of the respective Local Partnership,  and are without further
recourse  to  the  Partnership.  In  addition,  accrued  interest  payable  from
discontinued  operations,  as of June  15,  2007 and  March  31,  2007,  totaled
$1,403,870 and $56,532, respectively.

Partnership  management  fees and  expense  reimbursements  owed to the  General
Partners  amounting to approximately  $2,727,000 and $2,609,000 were accrued and
unpaid as of June 15, 2007 and March 15, 2007, respectively. Without the General
Partners' continued accrual without payment of the partnership  management fees,
the Partnership will not be in a position to meet its  obligations.  The General
Partners  have  allowed  for the  accrual  without  payment  of a portion of the
partnership management fees but are under no obligation to continue to do so.

A working capital reserve of  approximately  $5,358,000  remained unused at June
15, 2007.

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

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

For a discussion of contingencies affecting certain Local Partnerships, see Note
6 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.

                                       13
<PAGE>

The Local  Partnerships  are impacted by inflation  in several  ways.  Inflation
allows for  increases in rental rates  generally to reflect the impact of higher
operating and  replacement  costs.  Furthermore,  inflation  generally  does not
impact the fixed long-term financing under which real property  investments were
purchased. Inflation also affects the Local Partnerships adversely by increasing
operating costs,  such as fuel,  utilities,  and labor.  Since revenues from the
sales of assets are driven by market conditions, inflation has little impact.

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's accounting policies included in Item 8,
Note 2 to the  consolidated  financial  statements in the  Partnership's  Annual
Report on Form 10-K for the year ended March 15, 2007.

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

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

In  accordance  with  Statement  of  Financial  Accounting  Standards  No.  144,
"Accounting for the Impairment of Disposal of Long-Lived Assets", the results of
discontinued  operations  are reported as a separate  component of income before
extraordinary items on the consolidated  statements of operations.  Discontinued
operations include the results of operations and any gain or loss recognized for
Local  Partnerships  that have been  disposed of or are held for sale. A gain or
loss  recognized  on the  disposal is  disclosed  in the notes to the  financial
statements.  Adjustments to amounts  previously  reported in operations that are
directly related to the disposal of a Local  Partnership are reclassified in the
current period as discontinued operations for comparability purposes. Assets and
liabilities  of a Local  Partnership  that are  classified  as held for sale are
presented separately in the asset and liability sections,  respectively,  of the
consolidated balance sheets.

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

During the three months ended June 15, 2007,  the  Partnership  has not recorded
any loss on impairment of assets or reduction to estimated  fair value.  Through
June 15, 2007,  the  Partnership  has recorded  approximately  $2,710,000  as an
aggregate loss on impairment of assets or reduction to estimated fair value.

At the time management  commits to a plan to dispose of assets,  said assets are
adjusted to the lower of carrying amount or fair value less costs to sell. These
assets  are  classified  as  property  and  equipment-held  for sale and are not
depreciated.  As of June 15,  2007 and  March  15,  2007,  the  Partnership  has
recorded  property and equipment net of accumulated  depreciation  of $5,350,321
and $5,252,734, respectively, as held for sale.

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

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

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

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

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

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

The  results of  operations  for the three  months  ended June 15, 2007 and 2006
consisted  primarily  of the  results  of the  Partnership's  investment  in the
consolidated  Local  Partnerships,  excluding  the  results of its  discontinued
operations which are not reflected in the following discussion (see Note 5).

                                       14
<PAGE>

Rental  income  decreased  approximately  3% for the three months ended June 15,
2007 as  compared  to the  corresponding  period  in 2006,  primarily  due to an
increase in  vacancies  due to the  cancellation  of a Section 8 contract at one
Local  Partnership  offset by an  increase  in rental  rates  and  decreases  in
vacancies at several Local Partnerships.

Other income increased approximately $84,000 for the three months ended June 15,
2007 as compared to the corresponding period in 2006, primarily due to a special
grant  received  by one Local  Partnership  for labor and  supplies  needed  for
repairs to the property.

Total expenses, excluding general and administrative-related  parties, operating
and repair and  maintenance,  remained  fairly  consistent  with an  increase of
approximately  1% for the three  months  ended June 15,  2007 as compared to the
corresponding period in 2006.

General and  administrative - related parties expenses  decreased  approximately
$57,000  for  the  three   months  ended  June  15,  2007  as  compared  to  the
corresponding  period  in  2006,  primarily  due to a  decrease  in  partnership
management fees and expense reimbursements resulting from sold properties at the
Partnership level.

Operating  and other  expenses  decreased  approximately  $124,000 for the three
months  ended June 15,  2007 as compared  to the  corresponding  period in 2006,
primarily  due  to a  decrease  in  gas  and  electric  expenses  at  one  Local
Partnership.

Repairs and maintenance expenses increased  approximately $145,000 for the three
months  ended June 15,  2007 as compared  to the  corresponding  period in 2006,
primarily  due to an increase in  painting,  plumbing,  ground  maintenance  and
general repairs at one Local Partnership, an increase in major apartment repairs
and an increase in security contract expenses at a second Local Partnership, and
an  increase  in   non-recurring   heating  system  repairs  at  a  third  Local
Partnership.


Item 3.  Quantitative and Qualitative Disclosures about Market Risk

The  Partnership  has  mortgage  notes  that are  payable in  aggregate  monthly
installments  including  principal  and interest at rates varying from 1% to 12%
per annum.  The Partnership does not believe there is a material risk associated
with the  various  interest  rates  associated  with the  mortgage  notes as the
majority  of  the  Local  Partnership  mortgage  notes  have  fixed  rates.  The
Partnership currently discloses in Item 8, Note 3 to the financial statements in
the Partnership's  Annual Report on Form 10-K for the year ended March 15, 2007,
the fair value of the mortgage notes payable.

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

Item 4.  Controls and Procedures

(a) EVALUATION OF DISCLOSURE  CONTROLS AND PROCEDURES.  The Principal  Executive
Officer and Principal  Financial  Officer of Related Credit  Properties L.P. and
Liberty  Associates  III, L.P., the general  partners of the  Partnership,  have
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 officers have
concluded  that,  as of the end of such  period,  the  Partnership's  disclosure
controls and procedures are effective.

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

                                       15
<PAGE>

                           PART II. OTHER INFORMATION



Item 1.  Legal Proceedings - None

Item 1A. Risk Factors - No changes

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

Item 3.  Defaults upon Senior Securities - None

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

Item 5.  Other Information - None

Item 6.  Exhibits

         (31.1) Certification  Pursuant  to Rule  13a-14(a)  or  Rule  15d-14(a)
         (31.2) 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)

                                       16
<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:  Credit Properties GP LLC,
                                    its General Partner


Date: July 30, 2007
      -------------
                                    By:  /s/ Robert L. Levy
                                         ------------------
                                         Robert L. Levy
                                         Chief Financial Officer



Date: July 30, 2007
      -------------
                                    By:  /s/ Andrew J. Weil
                                         ------------------
                                         Andrew J. Weil
                                         President, Chief Executive 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: July 30, 2007
      -------------
                                         By:  /s/ Robert L. Levy
                                              ------------------
                                              Robert L. Levy
                                              Chief Financial Officer



Date: July 30, 2007
      -------------
                                         By:  /s/ Andrew J. Weil
                                              ------------------
                                              Andrew J. Weil
                                              President, Chief Executive Officer

                                       17
<PAGE>

                                                                    Exhibit 31.1



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


I, Robert L. Levy, certify that:

     1.  I have reviewed this quarterly report on Form 10-Q for the period ended
         June 15, 2007 of the Liberty Tax Credit Plus, L.P.;

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

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

     4.  The  registrant's  other  certifying  officer and I are 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 registrant and have:

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

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

         c) Evaluated the effectiveness of the registrant'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 report based on such evaluation; and

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

     5.  The registrant's other certifying  officer and I have disclosed,  based
         on our most  recent  evaluation  of  internal  control  over  financial
         reporting,  to the registrant's auditors and the audit committee of the
         registrant's  board of directors (or persons  performing the equivalent
         functions):

         a) All significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect  the  registrant'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  registrant's
         internal control over financial reporting.

         Date: July 30, 2007
               -------------

                                                    By:  /s/ Robert L. Levy
                                                         ------------------
                                                         Robert L. Levy
                                                         Chief Financial Officer

                                       18
<PAGE>

                                                                    Exhibit 31.2



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


I, Andrew J. Weil, certify that:

     1.  I have reviewed this quarterly report on Form 10-Q for the period ended
         June 15, 2007 of the Liberty Tax Credit Plus, L.P.;

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

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

     4.  The  registrant's  other  certifying  officer and I are 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 registrant and have:

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

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

         c) Evaluated the effectiveness of the registrant'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 report based on such evaluation; and

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

     5.  The registrant's other certifying  officer and I have disclosed,  based
         on our most  recent  evaluation  of  internal  control  over  financial
         reporting,  to the registrant's auditors and the audit committee of the
         registrant's  board of directors (or persons  performing the equivalent
         functions):

         a) All significant  deficiencies and material  weaknesses in the design
         or operation of internal  control over  financial  reporting  which are
         reasonably  likely to  adversely  affect  the  registrant'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  registrant's
         internal control over financial reporting.



         Date: July 30, 2007
               -------------

                                                    By: /s/ Andrew J. Weil
                                                        ------------------
                                                        Andrew J. Weil
                                                        Chief Executive Officer


                                       19
<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. on Form
10-Q for the  period  ended  June  15,  2007 as filed  with the  Securities  and
Exchange Commission ("SEC") on the date hereof (the "Report"), I, Robert L. Levy
and I, Andrew J. Weil, 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
registrant.

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



By:  /s/ Robert L. Levy                             By:  /s/ Andrew J. Weil
     ------------------                                  -----------------
     Robert L. Levy                                      Andrew J. Weil
     Chief Financial Officer                             Chief Executive Officer
     July 30, 2007                                       July 30, 2007