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, 2005


                                       OR

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



                         COMMISSION FILE NUMBER 0-17015

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

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

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



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


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

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


<PAGE>

                         PART I - Financial Information

Item 1. Financial Statements

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

                                     ASSETS

Operating Assets

   Property and equipment, at cost, net of accumulated depreciation of
     $86,949,436 and $96,840,139, respectively                            $  75,576,636    $  86,316,389
   Cash and cash equivalents                                                  6,261,990        4,335,171
   Cash held in escrow                                                        9,657,050       10,529,679
   Accounts receivable - tenants                                                515,598          761,215
   Deferred costs, net of accumulated amortization of $1,342,007 and
     $1,662,029, respectively                                                 1,594,533        1,922,580
   Other assets                                                               2,135,082        1,230,423
                                                                          -------------    -------------

Total operating assets                                                       95,740,889      105,095,457
                                                                          -------------    -------------

Assets from discontinued operations (Note 4)
  Property and equipment held for sale, net of accumulated depreciation
     of $14,216,205 and $13,195,220, respectively                             9,246,734       11,193,351
  Net assets held for sale                                                    4,270,825        4,452,896
                                                                          -------------    -------------
Total assets from discontinued operations                                    13,517,559       15,646,247
                                                                          -------------    -------------

Total assets                                                              $ 109,258,448    $ 120,741,704
                                                                          =============    =============


                               LIABILITIES AND PARTNERS' DEFICIT


Operating Liabilities

  Mortgage notes payable                                                  $  81,868,757    $  97,203,309
  Accounts payable                                                            4,328,993        2,436,882
  Accrued interest payable                                                    8,108,046        7,885,329
  Security deposits payable                                                     549,060          624,852
  Due to local general partners and affiliates                               19,782,414       21,080,176
  Due to general partners and affiliates                                      8,539,451        8,261,783
  Due to selling partners                                                     1,412,272        1,412,272
                                                                          -------------    -------------

Total operating liabilities                                                 124,588,933      138,904,603
                                                                          -------------    -------------

Liabilities from discontinued operations (Note 4)
  Mortgage notes payable of assets held for sale                             16,573,070       12,032,637
  Net liabilities held for sale (including minority interest)                    75,974        2,076,114
                                                                          -------------    -------------
Total liabilities from discontinued operations                               16,649,044       14,108,751
                                                                          -------------    -------------

Minority interests                                                            1,554,370         (321,605)
                                                                          -------------    -------------

Commitments and contingencies (Note 5)

Partners' deficit:
  Limited partners (15,987.5 BACs issued and outstanding)                   (32,476,200)     (30,908,125)
  General partners                                                           (1,057,759)      (1,041,920)
                                                                          -------------    -------------

Total partners' deficit                                                     (33,533,959)     (31,950,045)
                                                                          -------------    -------------

Total liabilities and partners' deficit                                   $ 109,258,448    $ 120,741,704
                                                                          =============    =============
</TABLE>
           See accompanying notes to consolidated financial statements

                                       2
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                 Three Months Ended
                                                                       June 15,
                                                              --------------------------
                                                                 2005           2004*
                                                              -----------    -----------
<S>                                                           <C>            <C>
Operations:

Revenues

Rental income                                                 $ 5,602,400    $ 5,373,929
Other                                                              88,881        172,307
                                                              -----------    -----------
                                                                5,691,281      5,546,236
                                                              -----------    -----------

Expenses

General and administrative                                      1,044,416      1,013,817
General and administrative-related parties (Note 2)               476,186        466,949
Repairs and maintenance                                         1,587,566      1,398,339
Operating and other                                             1,090,406        966,137
Taxes                                                             239,585        193,835
Insurance                                                         351,282        317,848
Financial                                                       1,555,363      1,713,144
Depreciation and amortization                                   1,419,453      1,255,366
                                                              -----------    -----------

Total expenses from operations                                  7,764,257      7,325,435
                                                              -----------    -----------

Loss from operations before minority interest                  (2,072,976)    (1,779,199)

Minority interest in loss of subsidiaries from operations           8,102          3,677
                                                              -----------    -----------

Loss from operations                                           (2,064,874)    (1,775,522)

Discontinued Operations:
Income from discontinued operations (including gain (loss)
    on sale of properties) (Note 4)                             2,419,081      2,770,408
                                                              -----------    -----------
Net income                                                    $   354,207    $   994,886
                                                              ===========    ===========

Loss from operations - limited partners                       $(2,044,225)   $(1,757,767)
Income  from discontinued operations (including gain (loss)
    on sale of properties) - limited partners                   2,394,890      2,742,704
                                                              -----------    -----------
Net income - limited partners                                 $   350,665    $   984,937
                                                              ===========    ===========

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

Loss from operations per BAC                                  $   (127.86)   $   (109.95)
Income from discontinued operations per BAC                        149.80         171.56
                                                              -----------    -----------

Net income per BAC                                            $     21.94    $     61.61
                                                              ===========    ===========
</TABLE>

*  Reclassified for comparative purposes

          See accompanying notes to consolidated financial statements

                                       3
<PAGE>

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

Net income                                354,207         350,665           3,542

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

Partners' deficit - June 15, 2005     (33,533,959)   $(32,476,200)   $ (1,057,759)
                                     ============    ============    ============
</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,
                                                                                    --------------------------
                                                                                       2005           2004*
                                                                                    -----------    -----------
<S>                                                                                 <C>            <C>
  Net income                                                                        $   354,207    $   994,886
  Adjustments to reconcile net income to net cash used in operating activities:

  Depreciation and amortization                                                       1,419,453      1,255,366
  Income from discontinued operations                                                (2,419,081)    (2,770,408)
  Minority interest in loss of subsidiaries                                              (8,102)        (3,677)
  Decrease in accounts receivable - tenants                                             255,269        463,008
  Decrease (increase) in other assets                                                  (997,168)      (362,878)
  (Decrease) increase in accounts payable and other liabilities                       2,414,029        152,931
  Increase in due to general partners and affiliates                                    277,668        299,729
  Decrease (increase)in cash held in escrow                                              91,944       (189,350)
                                                                                    -----------    -----------

Net cash provided by (used in) operating activities                                   1,388,219       (160,393)
                                                                                    -----------    -----------

Cash flows from investing activities:

  Decrease (increase) in cash held in escrow                                            830,944       (249,111)
  Proceeds from sale of investments                                                     530,650              0
  Improvements to property and equipment                                                (98,958)       (77,971)
                                                                                    -----------    -----------

Net cash provided by (used in) investing activities                                   1,262,636       (327,082)
                                                                                    -----------    -----------

Cash flows from financing activities:

  Repayments of mortgage notes                                                         (237,023)      (705,758)
  Increase in due to local general partners and affiliates                               83,988        309,850
  Decrease in due to local general partners and affiliates                             (195,352)       (82,937)
  Increase (decrease) in capitalization of consolidated subsidiaries attributable
    to minority interest                                                              1,562,472        (15,639)
  Distributions                                                                      (1,938,121)             0
                                                                                    -----------    -----------

  Net cash used in financing activities                                                (724,036)      (494,484)
                                                                                    -----------    -----------


  Net increase (decrease) in cash and cash equivalents                                1,926,819       (981,959)

  Cash and cash equivalents at beginning of period                                    4,335,171      5,224,728
                                                                                    -----------    -----------

  Cash and cash equivalents at end of period                                        $ 6,261,990    $ 4,242,769
                                                                                    ===========    ===========
</TABLE>

* Reclassified for comparative purposes.

          See accompanying notes to consolidated financial statements

                                       5
<PAGE>

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


Note 1 - General

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

For financial reporting purposes,  the Partnership's fiscal quarter ends on 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, 2005 and March 15, 2005 and the results of operations
and cash flows for the three months ended June 15, 2005 and 2004.  However,  the
operating  results and cash flows for the three  months  ended June 15, 2005 may
not be indicative of the results for the year.

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

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

The  Partnership's  investment in each  subsidiary  partnership  is equal to the
respective  subsidiary  partnership's  partners'  equity less minority  interest
capital,  if any.  Losses  attributable  to minority  interests which exceed the
minority interests' investments in the subsidiary partnerships have been charged
to the  Partnership.  There were no losses for each of the three  month  periods
ended June 15,  2005 and 2004.  In  consolidation,  all  subsidiary  partnership
losses are  included  in the  Partnership's  capital  account  except for losses
allocated to minority interest capital.

Note 2 - Related Party Transactions

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

The costs incurred to related parties from operations for the three months ended
June 15, 2005 and 2004 were as follows:
<TABLE>
<CAPTION>
                                                 Three Months Ended
                                                       June 15,
                                                 -------------------
                                                   2005       2004*
                                                 --------   --------
<S>                                              <C>        <C>
Partnership management fees (a)                  $225,250   $261,750
Expense reimbursement (b)                          69,293     30,314
Local administrative fee (d)                       10,000      8,000
                                                 --------   --------

Total general and administrative General
  Partners                                        304,543    300,064
                                                 --------   --------

Property management fees incurred to
  affiliates of the local general partners (c)    171,643    166,885
                                                 --------   --------

Total general and administrative-related
  parties                                        $476,186   $466,949
                                                 ========   ========
</TABLE>

* Reclassified for comparative purposes.

                                       6
<PAGE>

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

The costs incurred to related parties from discontinued operations for the three
months ended June 15, 2005 and 2004 were as follows:
<TABLE>
<CAPTION>
                                                            Three Months Ended
                                                                 June 15,
                                                          ----------------------
                                                            2005          2004
                                                          --------      --------
<S>                                                       <C>           <C>
Property management fees incurred to affiliates of the
 General Partners (c)                                     $      0      $ 23,653
Local administrative fee (d)                                 2,000         5,000
                                                          --------      --------
Total general and administrative-General Partners            2,000        28,653
                                                          --------      --------
Property  management fees incurred to affiliates of the
 Local General  Partners (c)                                76,309        88,780
                                                          --------      --------

Total  general  and  administrative-related parties       $ 78,309      $117,433
                                                          ========      ========
</TABLE>


(a) The General  Partners are entitled to receive a partnership  management fee,
after payment of all Partnership expenses,  which together with the local annual
administrative  fees  will not  exceed a maximum  of 0.5% per annum of  invested
assets (as  defined in the  Partnership's  Amended  and  Restated  Agreement  of
Limited  Partnership),  for  administering  the affairs of the Partnership.  The
partnership  management  fee,  subject  to the  foregoing  limitation,  will  be
determined  by the General  Partners in their sole  discretion  based upon their
review of the Partnership's investments. Partnership management fees owed to the
General  Partners  amounting to  approximately  $8,036,000 and  $7,811,000  were
accrued and unpaid as of June 15, 2005 and March 15, 2005, respectively.

(b) The  Partnership  reimburses the General  Partners and their  affiliates for
actual Partnership operating expenses incurred by the General Partners and their
affiliates on the  Partnership's  behalf.  The amount of reimbursement  from the
Partnership is limited by the provisions of the Partnership  Agreement.  Another
affiliate of the General Partners performs asset monitoring for the Partnership.
These   services   include  site  visits  and   evaluations  of  the  subsidiary
partnerships' performance. Expense reimbursements and asset monitoring fees owed
to Related Credit Properties L.P., a General Partner, amounting to approximately
$104,000  and $35,000  were accrued and unpaid as of June 15, 2005 and March 15,
2005, respectively.

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

(c)  Property  management  fees  incurred  by  the  subsidiary  partnerships  in
operations amounted to $390,157 and $467,430 for the three months ended June 15,
2005 and 2004, respectively.  Of these fees, $247,952 and $255,665 were incurred
to affiliates of the local general partners,  which includes $76,309 and $88,780
of fees relating to discontinued operations.  In addition,  $23,653 was incurred
to affiliates of the General  Partners for the three months ended June 15, 2004,
which is also included in discontinued operations.

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

Note 3 - Sale of Properties

The Partnership is currently in the process of disposing of its investments.  As
of  June  15,  2005,  the  Partnership  has  disposed  of 12 of its 31  original
investments.

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

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

On February 17, 2005, the Partnership's  Limited Partnership Interest in Redwood
Villa Associates  ("Redwood") was sold to an unaffiliated  third party purchaser
for $60,000,  resulting in a gain of approximately $1,763,000. The sale resulted
in the  liquidation  of Redwood.  As of the sale date,  Redwood had property and
equipment, at cost, of approximately  $5,999,000 and accumulated depreciation of
approximately $3,497,000.

On January 5, 2005, the property and the related assets and  liabilities of Lund
Hill  Associates,  L.P. ("Lund Hill") were sold to an unaffiliated  thirty party

                                       7
<PAGE>

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

purchaser for $6,500,000,  resulting in a gain of approximately $1,345,000.  The
sale resulted in the  liquidation  of Lund Hill. As of the sale date,  Lund Hill
had property and equipment, at cost, of approximately $5,841,000 and accumulated
depreciation of approximately $2,423,000.

On December 29, 2004, the Partnership  entered into an agreement for the sale of
its  Limited   Partnership   Interest  in  Lancaster  Towers   Associates,   LTD
("Lancaster")  to an affiliate of the Local General Partner for a purchase price
of $449,750. The sales documents have been executed and the funds are being held
in escrow  waiting for approval of the sale from the  Department  of Housing and
Urban Development  ("HUD").  On June 2, 2005, HUD approval was obtained.  During
the  quarter  ended  June  15,  2005,  in  accordance  with  SFAS No.  144,  the
Partnership  deemed the  building  impaired  and wrote it down to its fair value
which resulted in a loss on impairment of $1,860,000.  The sale will result in a
contribution by the Local General Partner of  approximately  $200,000 which will
be recognized during the quarter ended September 15, 2005.

On March 31, 2004, the Partnership's Limited Partnership Interest in Walnut Park
Plaza  ("Walnut") was sold to the Local General  Partner for a purchase price of
$1 plus the  assumption  of all the  related  debt which  totaled  approximately
$7,700,000   resulting  in  a  general  partner  contribution  of  approximately
$2,504,000. The sale resulted in the liquidation of Walnut. As of the sale date,
Walnut had property and equipment,  at cost, of  approximately  $10,957,000  and
accumulated depreciation of approximately $4,448,000.

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.
Bayridge is being held as an asset held for sale as of June 15, 2005.

Note 4 - Discontinued Operations

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

Consolidated Balance Sheets:
<TABLE>
<CAPTION>
                                                      June 15,        March 15,
                                                        2005            2005
                                                    ------------    ------------
<S>                                                 <C>             <C>
 Assets

  Property and equipment, net of accumulated
    depreciation of $14,216,205 and $13,195,220,
    respectively                                    $  9,246,734    $ 11,193,351
  Cash and cash equivalents                              309,051         444,267
  Cash held in escrow                                  3,205,874       3,851,578
  Deferred costs, net of accumulated amortization
    of $453,245 and $182,368, respectively               301,337          68,189
  Other assets                                           454,563          88,862
                                                    ------------    ------------
Total assets                                        $ 13,517,559    $ 15,646,247
                                                    ============    ============

Liabilities

  Mortgage notes payable                            $ 16,573,070    $ 12,032,637
  Accounts payable and other liabilities                 564,195       1,172,267
  Due to local general partners and affiliates         1,517,122         732,717
  Due to general partners and affiliates                  17,500          49,500
  Minority interest                                   (2,022,843)        121,630
                                                    ------------    ------------
Total liabilities                                   $ 16,649,044    $ 14,108,751
                                                    ============    ============
</TABLE>


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

                                       8
<PAGE>

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

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

Rental income                                                 $1,127,143   $2,576,433
Other                                                             16,473       90,460
Gain on sale of properties                                     4,544,188    2,504,461
                                                              ----------   ----------
Total revenue                                                  5,687,804    5,171,354
                                                              ----------   ----------

Expenses

General and administrative                                       245,314      436,424
General and administrative-related parties (Note 2)               78,309      117,433
Repairs and maintenance                                          271,532      654,057
Operating                                                        181,458      440,246
Taxes                                                             81,958      180,396
Insurance                                                         62,174      135,702
Interest                                                         316,218      812,831
Depreciation and amortization                                    342,780      619,268
Loss on impairment of fixed assets                             1,860,000            0
                                                              ----------   ----------

Total expenses                                                 3,439,743    3,396,357
                                                              ----------   ----------

Income before minority interest                                2,248,061    1,774,997
Minority interest in loss of subsidiaries from discontinued
    operations                                                   171,020      995,411
                                                              ----------   ----------
Total income from discontinued operations (including
    gain on sale of properties)                               $2,419,081   $2,770,408
                                                              ==========   ==========

Income - limited  partners from  discontinued operations
    (including gain on sale of properties)                    $2,394,890   $2,742,704
                                                              ==========   ==========

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

Income discontinued  operations (including gain on sale
    of properties) per BAC                                    $   149.80   $   171.56
                                                              ==========   ==========
</TABLE>


Note 5 - Commitments and Contingencies

a) Uninsured Cash and Cash Equivalents

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

b) Cash Distributions

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

c)  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,  or (ii) if
there is a decrease in the qualified basis of the Local Partnership  property or
(iii) if there is a reduction in the Local Partnership  interest in the property
at any time during the 15-year  Compliance  Period that began with the first tax
year of the Credit  Period.  As of December 31, 2003,  the Tax Credit Period for
each Local Partnership had expired.


                                       9
<PAGE>

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

d)  Other

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

                                       10
<PAGE>


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


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

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

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

The  Partnership's  primary  sources  of funds  included:  (i)  working  capital
reserves;  (ii)  interest  earned on the working  capital  reserves;  (iii) cash
distributions from operations of the Local Partnerships; and (iv) sales proceeds
and  distributions.  Such funds,  although  minimal,  are  available to meet the
obligations of the Partnership.  During the three months ended June 15, 2005 and
2004,  distributions  from  operations  of the Local  Partnerships  amounted  to
approximately $13,000 and $113,000, respectively. Additionally, during the three
months  ended June 15, 2005 and 2004,  the  Partnership  received  approximately
$531,000 and $200,000 of proceeds from sales.

For the three  months  ended June 15,  2005,  cash and cash  equivalents  of the
Partnership and its  consolidated  Local  Partnerships  increased  approximately
$1,927,000.  This  increase is  attributable  to net cash  provided by operating
activities   ($1,388,000),   an  increase  in   capitalization  of  consolidated
subsidiaries attributable to minority interest ($1,562,000),  a decrease in cash
held in escrow  relating to investing  activities  ($831,000)  and proceeds from
sale  of  investments  ($531,000)  which  exceeded  distributions  ($1,938,000),
improvements to property and equipment  ($99,000),  repayments of mortgage notes
($237,000)  and a net decrease in due to local general  partners and  affiliates
($111,000).  Included in adjustments to reconcile the net income to cash used in
operating   activities  is  depreciation   and   amortization  of  approximately
($1,419,000)   and  income  from   discontinued   operations  of   approximately
($2,419,000).

Total  expenses  for the three  months  ended June 15, 2005 and 2004,  excluding
depreciation and amortization,  interest and general and  administrative-related
parties, totaled $4,313,255 and $3,889,976, respectively.

Accounts  payable as of June 15, 2005 and March 15, 2005,  were  $2,526,545  and
$2,436,882,  respectively. Accounts payable are short term liabilities which are
expected to be paid from operating cash flows,  working capital  balances at the
Local  Partnership   level,  local  general  partner  advances  and  in  certain
circumstances  advances  from the  Partnership.  Because the  provisions  of the
secondary  loans defer the payment of accrued  interest of the respective  Local
Partnerships,   the   Partnership   believes  it  (and  the   applicable   Local
Partnerships) has sufficient  liquidity and ability to generate cash and to meet
existing and known or reasonably  likely future cash  requirements over both the
short and long term.

Accrued  interest  payable as of June 15, 2005 and March 15, 2005 was $8,108,046
and $7,885,329,  respectively.  Accrued interest payable  represents the accrued
interest on all mortgage  loans,  which  include  primary and  secondary  loans.
Certain  secondary  loans have  provisions such that interest is accrued but not
payable until a future date. The Partnership  anticipates the payment of accrued
interest  on the  secondary  loans  (which  make up the  majority of the accrued
interest payable amount and which have been accumulating since the Partnership's
investment  in the  respective  Local  Partnership)  will  be made  from  future
refinancings  or  sales  proceeds  of  the  respective  Local  Partnerships.  In
addition, each Local Partnership's mortgage notes are collateralized by the land
and  buildings of the  respective  Local  Partnership,  and are without  further
recourse to the Partnership.

Partnership  management  fees and  expense  reimbursements  owed to the  General
Partners  amounting to approximately  $8,140,000 and $7,846,000 were accrued and
unpaid as of June 15, 2005 and March 15, 2005, respectively. Without the General
Partners' continued accrual without payment of the partnership  management fees,
the Partnership will not be in a position to meet its  obligations.  The General
Partners  have  allowed  for the  accrual  without  payment  of a portion of the
partnership management fees but are under no obligation to continue to do so.

A working capital reserve of  approximately  $4,636,000  remained unused at June
15, 2005. On April 15, 2005, a distribution  from sales proceeds was made to the
Limited  Partners of  approximately  $1,919,000  and to the  General  Partner of
approximately $19,000.

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

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

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

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.

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.

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.

                                       11
<PAGE>

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

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

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

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

During the three  months  ended June 15,  2005,  the  Partnership  has  recorded
$1,860,000  as a 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,  2005 and  March  15,  2005,  the  Partnership  has
recorded  property and equipment net of accumulated  depreciation  of $9,246,734
and $11,193,351, respectively, as held for sale.

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

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

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

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

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

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

The results of operations of the Partnership, as well as the Local Partnerships,
remained fairly consistent during the three months ended June 15, 2005 and 2004,
excluding repairs and maintenance,  operating, taxes, insurance and depreciation
and amortization.  The results of operations for the three months ended June 15,
2005 and 2004 consisted primarily of the results of the Partnership's investment
in the consolidated Local Partnerships.

Rental  income  increased  approximately  4% for the three months ended June 15,
2005 as compared to the  corresponding  period in 2004,  primarily due to rental
rate increases at the Local Partnerships.

Other income decreased approximately $83,000 for the three months ended June 15,
2005 as  compared  to the  corresponding  period  in  2004,  primarily  due to a
decrease in subsidiary income being received at one Local Partnership in 2005.

Repairs and maintenance  increased  approximately  $189,000 for the three months
ended June 15, 2005 as compared to the corresponding  period in 2004,  primarily
due to boiler repairs at one Local Partnership,  increased  maintenance payroll,
exterior  painting  and  sewer  line  repairs  at a  second  Local  Partnership,
increased roof repairs at a third Local Partnership and boiler repairs, painting
and plastering apartments and door repairs at a fourth Local Partnership.

Operating increased  approximately  $124,000 for the three months ended June 15,
2005 as  compared  to the  corresponding  period  in 2004,  primarily  due to an
underaccrual at two Local Partnerships in the prior year and increased gas costs
at a third Local Partnership.

Taxes increased  approximately  $46,000 for the three months ended June 15, 2005
as compared to the corresponding period in 2004, primarily due to a reassessment
of the property taxes at one Local Partnership.

Insurance  increased  approximately  $33,000 for the three months ended June 15,
2005 as compared to the corresponding  period in 2004 primarily due to increased
premiums at several Local Partnerships.

                                       12
<PAGE>

Depreciation and  amortization  increased  approximately  $164,000 for the three
months  ended June 15,  2005 as compared  to the  corresponding  period in 2004,
primarily  due to the  resumption of  depreciation  expense in 2005 at one Local
Partnership that was classified as an asset held for sale in 2004, and therefore
not depreciated in 2004.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

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

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

Item 4. Controls and Procedures

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

(b) INTERNAL CONTROL OVER FINANCIAL  REPORTING.  There have not been any changes
in  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.

                                       13
<PAGE>

                           PART II. OTHER INFORMATION



Item 1. Legal Proceedings - None

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

Item 3. Defaults upon Senior Securities - None

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

Item 5. Other Information - None

Item 6. Exhibits

        Exhibits

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

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

                                       14
<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: July 19, 2005

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

Date: July 19, 2005

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

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



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

                             By: Related Credit Properties Inc.,
                                 its General Partner

Date: July 19, 2005

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

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

<PAGE>

                                                                    Exhibit 31.1


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

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

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

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

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

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

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

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

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

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

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

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

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


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

<PAGE>


                                                                    Exhibit 32.1


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

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


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

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

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

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