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

                                    FORM 10-Q


(Mark One)


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


For the quarterly period ended September 15, 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>
                                                                       September 15,    March 15,
                                                                           2007            2007
                                                                       ------------    ------------
                                                                       (Unaudited)       (Audited)
<S>                                                                    <C>             <C>
                                     ASSETS

Operating assets

  Property and equipment, at cost, net of accumulated
    depreciation of $39,496,388 and $42,785,507, respectively          $ 25,207,025    $ 29,093,468
  Cash and cash equivalents                                               5,400,937       6,046,635
  Cash held in escrow                                                     2,830,626       2,940,919
  Accounts receivable - tenants                                             164,457         208,079
  Deferred costs, net of accumulated amortization of $443,812 and
    $426,439, respectively                                                  713,920         727,459
  Other assets                                                            2,242,038       2,176,261
                                                                       ------------    ------------

Total operating assets                                                   36,559,003      41,192,821
                                                                       ------------    ------------

Assets from discontinued operations (Note 5)
  Property and equipment held for sale, net of accumulated
    depreciation of $8,431,754 and $9,605,003, respectively               5,329,321       5,252,734
  Net assets held for sale                                                1,581,825       1,210,221
                                                                       ------------    ------------
Total assets from discontinued operations                                 6,911,146       6,462,955
                                                                       ------------    ------------

Total assets                                                           $ 43,470,149    $ 47,655,776
                                                                       ============    ============

                   LIABILITIES AND PARTNERS' (DEFICIT) EQUITY

Operating liabilities

  Mortgage notes payable                                               $ 34,743,199    $ 38,047,957
  Accounts payable                                                        2,278,342       4,890,335
  Accrued interest payable                                                5,568,160       6,616,457
  Security deposits payable                                                 156,898         194,026
  Due to local general partners and affiliates                           16,416,903      16,096,222
  Due to general partners and affiliates                                  2,787,086       2,724,952
                                                                       ------------    ------------

Total operating liabilities                                              61,950,588      68,569,949
                                                                       ------------    ------------

Liabilities from discontinued operations (Note 5)
  Mortgage notes payable of assets held for sale                          7,619,720       4,507,279
  Net liabilities held for sale (including minority interest)             1,621,566          84,174
                                                                       ------------    ------------
Total liabilities from discontinued operations                            9,241,286       4,591,453
                                                                       ------------    ------------

Total liabilities                                                        71,191,874      73,161,402
                                                                       ------------    ------------

Minority interests                                                         (557,186)       (548,799)
                                                                       ------------    ------------

Commitments and contingencies (Note 6)

Partners' (deficit) equity
  Limited partners (15,987.5 BACs issued and outstanding)               (31,408,987)    (29,223,352)
  General partners                                                        4,244,448       4,266,525
                                                                       ------------    ------------

Total partners' (deficit) equity                                        (27,164,539)    (24,956,827)
                                                                       ------------    ------------

Total liabilities and partners' (deficit) equity                       $ 43,470,149    $ 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             Six Months Ended
                                                        September 15,                 September 15,
                                                 --------------------------    --------------------------
                                                    2007           2006*           2007          2006*
                                                 -----------    -----------    -----------    -----------
<S>                                              <C>            <C>            <C>            <C>
Operations:

Revenues
Rental income                                    $ 2,463,534    $ 2,687,987    $ 4,997,043    $ 5,309,924
Other                                                101,384         99,043        178,269        176,565
                                                 -----------    -----------    -----------    -----------

Total revenues                                     2,564,918      2,787,030      5,175,312      5,486,489
                                                 -----------    -----------    -----------    -----------

Expenses
General and administrative                           467,767        353,341      1,066,033        900,087
General and administrative - related parties
  (Note 2)                                           250,534        240,976        490,435        538,299
Repairs and maintenance                              595,195        902,584      1,257,029      1,503,716
Operating and other                                  337,938        317,961        981,323      1,085,480
Taxes                                                134,305        142,903        266,822        271,377
Insurance                                            155,583        154,863        310,473        306,433
Financial                                            751,468        894,047      1,640,911      1,800,356
Depreciation and amortization                        563,588        580,026      1,130,204      1,161,684
                                                 -----------    -----------    -----------    -----------

Total expenses from operations                     3,256,378      3,586,701      7,143,230      7,567,432
                                                 -----------    -----------    -----------    -----------

Loss from operations before minority interest       (691,460)      (799,671)    (1,967,918)    (2,080,943)

Minority interest in loss of subsidiaries from
  operations                                           5,427          2,066         12,453          3,817
                                                 -----------    -----------    -----------    -----------

Loss from operations                                (686,033)      (797,605)    (1,955,465)    (2,077,126)

Discontinued Operations:
Income (loss) from discontinued operations
  (including gain on sale of properties)
  (Note 5)                                           114,754      6,831,350       (252,247)     6,025,487
                                                 -----------    -----------    -----------    -----------
Net (loss) income                                $  (571,279)   $ 6,033,745    $(2,207,712)   $ 3,948,361
                                                 ===========    ===========    ===========    ===========

Loss from operations - limited partners          $  (679,172)   $  (789,629)   $(1,935,910)   $(2,056,355)
Income (loss) from discontinued operations
  (including gain on sale of properties) -
  limited partners                                   113,606      6,763,037       (249,725)     5,965,232
                                                 -----------    -----------    -----------    -----------
Net (loss) income - limited partners             $  (565,566)   $ 5,973,408    $(2,185,635)   $ 3,908,877
                                                 ===========    ===========    ===========    ===========

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

Loss from operations per BAC                     $    (42.48)   $    (49.39)   $   (121.09)   $   (128.63)
Income (loss) from discontinued operations
  per BAC                                               7.10         423.02         (15.62)        373.12
                                                 -----------    -----------    -----------    -----------

Net (loss) income per BAC                        $    (35.38)   $    373.63    $   (136.71)   $    244.49
                                                 ===========    ===========    ===========    ===========
</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                                            (2,207,712)     (2,185,635)        (22,077)
                                                  ------------    ------------    ------------

Partners' (deficit) equity - September 15, 2007   $(27,164,539)   $(31,408,987)   $  4,244,448
                                                  ============    ============    ============
</TABLE>

           See accompanying notes to consolidated financial statements

                                       4
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (decrease) in Cash and Cash Equivalents
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                 Six Months Ended
                                                                                   September 15,
                                                                           ----------------------------
                                                                               2007            2006
                                                                           ------------    ------------
<S>                                                                        <C>             <C>
Net (loss) income                                                          $ (2,207,712)   $  3,948,361

Adjustments to reconcile net (loss) income to net cash (used in)
  provided by operating activities:
  Gain on sale of properties                                                    (84,827)     (8,665,605)
  Depreciation and amortization                                               1,282,336       2,103,513
  Minority interest in loss of subsidiaries                                     307,464       1,775,608
  Decrease (increase) in accounts receivable - tenants                           23,861        (529,665)
  Increase in other assets                                                     (191,775)     (2,108,539)
  Increase in accounts payable                                                    2,877       3,590,033
  Increase in accrued interest payable                                          300,447         577,982
  Decrease in security deposits payable                                          (6,674)        (28,858)
  Increase in due to general partners and affiliates                             70,906          64,599
  (Increase) decrease in cash held in escrow                                   (206,185)        223,317
                                                                           ------------    ------------

Net cash (used in) provided by operating activities                            (709,282)        950,746
                                                                           ------------    ------------

Cash flows from investing activities:

  Decrease in cash held in escrow                                                55,361         156,466
  Proceeds from sale of investments                                           3,435,000      18,800,000
  Costs paid relating to sale of properties                                    (438,161)     (3,411,585)
  Improvements to property and equipment                                        (59,318)       (145,851)
                                                                           ------------    ------------

Net cash provided by investing activities                                     2,992,882      15,399,030
                                                                           ------------    ------------

Cash flows from financing activities:

  Repayments of mortgage notes                                                 (192,317)    (14,064,736)
  Increase in due to local general partners and affiliates                      327,537         523,849
  Decrease in due to local general partners and affiliates                      (24,749)       (176,418)
  Increase in deferred costs                                                     (3,834)              0
  Decrease in capitalization of consolidated subsidiaries
    attributable to minority interest                                          (212,161)         (7,292)
  Distribution                                                               (2,777,970)              0
                                                                           ------------    ------------

Net cash used in financing activities                                        (2,883,494)    (13,724,597)
                                                                           ------------    ------------

  Net (decrease) increase in cash and cash equivalents                         (599,894)      2,625,179

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

  Cash and cash equivalents at end of period*                              $  5,790,607    $  6,631,721
                                                                           ============    ============

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

  Proceeds from sale of investments - net                                  $ (2,996,839)   $(15,388,415)
  Decrease in property and equipment, net of accumulated depreciation         2,605,211       8,717,315
  Decrease in mortgage notes payable                                                  0        (131,619)
  Decrease in due to local general partner and affiliates                             0        (704,510)
  Decrease in cash held in escrow                                                18,663       1,591,635
  Decrease in rents receivable                                                   14,532         277,796
  Decrease in other assets                                                       38,109          98,525
  Increase (decrease) in accounts payable                                       254,160      (1,392,219)
  Decrease in accrued interest payable                                                0         (61,500)
  Decrease in security deposits payable                                         (18,663)       (133,625)
  Decrease in deferred cost                                                           0         301,816
  Decrease  in  capitalization of consolidated subsidiaries attributable
    to minority interest                                                              0      (1,840,804)
</TABLE>

*  Cash and cash equivalents,  end of period, includes cash and cash equivalents
   from discontinued operations of $389,670 and $531,231, respectively.

           See accompanying notes to consolidated financial statements


                                       5
<PAGE>

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


Note 1 - General

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

In the opinion of the General  Partners,  the accompanying  unaudited  financial
statements  contain  all  adjustments   (consisting  only  of  normal  recurring
adjustments)   necessary  to  present  fairly  the  financial  position  of  the
Partnership  as of  September  15,  2007 and  March 15,  2007,  the  results  of
operations  for the three and six months ended  September  15, 2007 and 2006 and
cash flows for the six months ended  September 15, 2007 and 2006.  However,  the
operating results and cash flows for the six months ended September 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. There were no such losses for the three and six months ended
September 15, 2007 and 2006. In consolidation, all subsidiary partnership losses
are included in the Partnership's capital account except for losses allocated to
minority interest capital.


Note 2 - Related Party Transactions

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

The costs  incurred to related  parties  from  operations  for the three and six
months ended September 15, 2007 and 2006 were as follows:
<TABLE>
<CAPTION>
                                                     Three Months Ended    Six Months Ended
                                                       September 15,         September 15,
                                                    -------------------   -------------------
                                                      2007       2006*      2007       2006*
                                                    --------   --------   --------   --------
<S>                                                 <C>        <C>        <C>        <C>
Partnership management fees (a)                     $108,375   $116,139   $228,000   $270,639
Expense reimbursement (b)                             58,717     42,897     95,976    102,862
Local administrative fee (d)                           2,500      2,500      5,000      5,000
                                                    --------   --------   --------   --------
Total general and administrative-General Partners    169,592    161,536    328,976    378,501
                                                    --------   --------   --------   --------
Property management fees incurred to affiliates
  of the local general partners (c)                   80,942     79,440    161,459    159,798
                                                    --------   --------   --------   --------
Total general and administrative-related parties    $250,534   $240,976   $490,435   $538,299
                                                    ========   ========   ========   ========
</TABLE>

* Reclassified for comparative purpose.

                                       6
<PAGE>

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



The costs incurred to related parties from discontinued operations for the three
and six months ended September 15, 2007 and 2006 were as follows:
<TABLE>
<CAPTION>
                                                          Three Months Ended    Six Months Ended
                                                            September 15,         September 15,
                                                         -------------------   -------------------
                                                           2007       2006*      2007       2006*
                                                         --------   --------   --------   --------
<S>                                                      <C>        <C>        <C>        <C>
Local administrative fee (d)                             $    625   $  3,943   $  1,250   $  7,886
                                                         --------   --------   --------   --------
Total general and administrative-General Partners             625      3,943      1,250      7,886
                                                         --------   --------   --------   --------
Property management fees incurred to affiliates of the
  local general partners (c)                               10,690     86,213    103,868    173,517
                                                         --------   --------   --------   --------
Total general and administrative-related parties         $ 11,315   $ 90,156   $105,118   $181,403
                                                         ========   ========   ========   ========
</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).  Partnership  management fees owed to the General Partners amounting
to  approximately  $2,620,000  and  $2,574,000  were  accrued  and  unpaid as of
September 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 affiliates of the General  Partners  amounting to  approximately  $56,000 and
$35,000  were  accrued and unpaid as of  September  15, 2007 and March 15, 2007,
respectively.

(c)  Property  management  fees  incurred  by  the  subsidiary  partnerships  in
operations  amounted to $155,446  and $233,914 and $392,955 and $576,657 for the
three and six months ended September 15, 2007 and 2006,  respectively.  Of these
fees, $91,632 and $165,653 and $265,327 and $333,315 were incurred to affiliates
of the local general  partners,  which include  $10,690 and $86,213 and $103,868
and $173,517 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.  It
is  anticipated  that this process will take a number of years.  As of September
15, 2007, the property and the related  assets and  liabilities of fifteen Local
Partnerships and the limited  partnership  interest in eight Local  Partnerships
were sold. In addition,  as of September 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 an agreement to sell its property and
the related assets and liabilities (see Note 4). There can be no assurance as to
when the  Partnership  will dispose of its remaining  eight  investments  or the
amount of  proceeds  which may be  received.  However,  based on the  historical
operating results of the Local Partnerships and the current economic conditions,
including  changes in tax laws, it is unlikely that the proceeds from such sales
received by the Partnership will be sufficient to return to the limited partners
their original investment.

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,  which was recorded  during the quarter ended June 15, 2007.  The loss was
adjusted by approximately  $88,000 in gain which was recorded during the quarter
ended September 15, 2007, resulting in overall gain of approximately $64,000.

On December 29, 2006,  the property and the related  assets and  liabilities  of
United-Pennsylvanian,  L.P.  ("United Penn") were sold to an unaffiliated  third
party  purchaser  for a sales  price  of  $500,000  plus the  assumption  of the
mortgage debt. The  Partnership  received  $217,227 as a distribution  from this
sale after the  repayment of  mortgages,  other  liabilities,  closing costs and
distributions to minority interest of approximately  $283,000. The sale resulted

                                       7
<PAGE>

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


in a gain of  approximately  $2,225,000,  resulting  from the  write-off  of the
deficit basis in the property at the date of the sale, which was recorded during
the quarter ended March 15, 2007.  An  adjustment  to the gain of  approximately
$21,000 was recorded during the quarter ended September 15, 2007 resulting in an
overall gain of approximately $2,246,000.

On August 31, 2006, the  Partnership  sold its limited  partnership  interest in
Alameda Towers Associates,  L.P. ("Alameda Towers") to the Local General Partner
for a sales price of $2,092,490. The Partnership received proceeds of $92,490 on
September 5, 2006 and $355,000 on January 1, 2007.  The remaining  $1,645,000 is
to be paid in guaranteed  payments payable on certain dates through December 31,
2008, which is included in other assets at September 15, 2007. The sale resulted
in a loss of approximately $7,000,  resulting from the write-off of the basis in
the property of approximately  $2,099,000 and the $2,092,490 cash and guaranteed
payments  receivable from the sale,  which was recorded during the quarter ended
December  15,  2006.  An  adjustment  to the loss of  approximately  $26,000 was
recorded during the quarter ended March 15, 2007 resulting in an overall loss of
approximately $33,000.

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  which 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
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 which 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 which 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 which 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  $4,482,000 on June 30, 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 has been classified as an asset held
for sale as of the quarter ended June 15, 2007. As of June 30, 2007, West Kinney
had property and equipment,  at cost, of approximately  $7,187,000,  accumulated
depreciation  of  approximately  $4,465,000  and mortgage debt of  approximately
$3,124,000.

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 by the end of 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 June 30, 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
$4,496,000.

                                       8
<PAGE>

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


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 September 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.

Consolidated Balance Sheets of Discontinued Operations:
<TABLE>
<CAPTION>
                                                    September 15,    March 15,
                                                        2007           2007
                                                    -----------    -----------
<S>                                                 <C>            <C>
Assets
  Property and equipment, net of accumulated
    depreciation of $8,431,754 and $9,605,003,
    respectively                                    $ 5,329,321    $ 5,252,734
  Cash and cash equivalents                             389,670        343,866
  Cash held in escrow                                   964,788        722,334
  Deferred costs, net of accumulated amortization
    of $7,341 and $6,341, respectively                   41,445         42,445
  Due from general partners and affiliates                8,772          8,772
  Other assets                                          177,150         92,804
                                                    -----------    -----------
Total assets                                        $ 6,911,146    $ 6,462,955
                                                    ===========    ===========

Liabilities
  Mortgage notes payable                            $ 7,619,720    $ 4,507,279
  Accounts payable and other liabilities              1,643,894        192,298
  Due to local general partners and affiliates          104,465        122,358
  Minority interest                                    (126,793)      (230,482)
                                                    -----------    -----------
Total liabilities                                   $ 9,241,286    $ 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 and
six months ended  September 15, 2007,  Charles  Drew,  which was sold during the
current year,  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 and six months ended September
15, 2006 and in order to present comparable results for the three and six months
ended September 15, 2007, Alameda Towers,  Concourse  Artists,  Grand Concourse,
Robin  Housing  and  Willoughby  which were sold  during  the six  months  ended
September 15, 2006, and 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
                               September 15, 2007
                                   (Unaudited)


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

Rental income                                         $    675,904    $  2,270,880    $  1,400,879    $  5,082,767
Other                                                        5,923          34,084          12,493          86,280
Gain on sale of properties                                 108,471       8,676,605          84,827       8,665,605
                                                      ------------    ------------    ------------    ------------
Total revenue                                              790,298      10,981,569       1,498,199      13,834,652
                                                      ------------    ------------    ------------    ------------

Expenses:

General and administrative                                 214,476         278,205         306,457         898,397
General and administrative-related parties (Note 2)         11,315          90,156         105,118         181,403
Repairs and maintenance                                    151,955         686,398         302,613       1,619,349
Operating                                                   80,675         166,198         233,182         843,138
Taxes                                                       20,000          90,507          62,176         192,533
Insurance                                                   42,517         145,400          71,174         319,291
Interest                                                   100,005         487,454         197,677       1,033,800
Depreciation and amortization                               21,500         424,226         152,132         941,829
                                                      ------------    ------------    ------------    ------------

Total expenses                                             642,443       2,368,544       1,430,529       6,029,740
                                                      ------------    ------------    ------------    ------------

Income before minority interest                            147,855       8,613,025          67,670       7,804,912
Minority interest in income of subsidiaries from
  discontinued
  operations                                               (33,101)     (1,781,675)       (319,917)     (1,779,425)
                                                      ------------    ------------    ------------    ------------
Net income (loss) from discontinued operations
  (including gain on sale of properties)              $    114,754    $  6,831,350    $   (252,247)   $  6,025,487
                                                      ============    ============    ============    ============

Income (loss) - limited partners from discontinued
  operations (including gain on sale of properties)   $    113,606    $  6,763,037    $   (249,725)   $  5,965,232
                                                      ============    ============    ============    ============

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

Income (loss) from discontinued operations
  (including gain on sale of properties) per BAC      $       7.10    $     423.02    $     (15.62)   $     373.12
                                                      ============    ============    ============    ============
</TABLE>

Cash flows from Discontinued Operations:
<TABLE>
<CAPTION>
                                                                                            Six Months Ended
                                                                                              September 15,
                                                                                      ----------------------------
                                                                                          2007            2006*
                                                                                      ------------    ------------
<S>                                                                                   <C>             <C>
Net cash (used in) provided by operating activities                                   $   (960,950)   $    688,818
                                                                                      ------------    ------------
Net cash provided by investing activities                                             $    601,972    $ 15,224,968
                                                                                      ------------    ------------
Net cash used in financing activities                                                 $   (137,941)   $(11,650,745)
                                                                                      ------------    ------------
</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

                                       10
<PAGE>

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


default.  The  mortgage  payable  was due as of June  30,  2007.  Magnolia  Arms
received  a  material  portion  of its  revenue  from the  City of  Jacksonville
Department  of Housing  and Urban  Development  ("Jacksonville  HUD")  under the
federal  government's  Section 8 rent subsidy  program.  As of June 5, 2007, the
contract between  Jacksonville HUD and Magnolia Arms was terminated.  Because of
these  circumstances,  there is substantial  doubt  regarding  whether the Local
Partnership  can continue as a going concern.  The  Partnership's  investment in
Magnolia  Arms was written down to zero by prior years'  losses and the minority
interest was  approximately  $21,000 and $33,000 at September 15, 2007 and March
15, 2007,  respectively.  The net loss after minority interest for Magnolia Arms
amounted  to  approximately  $556,000  and  $96,000  for  the six  months  ended
September 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 June 30,  2007 was  $405,076.
Quality Hill has been granted another extension to December 31, 2007.

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. In 2007, Quality Hill has been granted
another extension to December 31, 2007.

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 September 15, 2007 and March 15, 2007. The net loss after minority interest
for Quality  Hill  amounted  to  approximately  $165,000  and  $148,000  for the
quarters  ended  September  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 has 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
                               September 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 September 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 September 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 September 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 an 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  disclosed  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 September 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  six  months  ended  September  15,  2007  and  2006,
distributions   from   operations   of  the  Local   Partnerships   amounted  to
approximately $60,000 and $18,000,  respectively.  Additionally,  during the six
months ended September 15, 2007 and 2006, the Partnership received approximately
$2,765,000 and $2,832,000 distributions of proceeds from sales, respectively.

For the six months ended  September 15, 2007,  cash and cash  equivalents of the
Partnership and its  consolidated  Local  Partnerships  decreased  approximately
$600,000.  This  decrease  is  attributable  to a net  cash  used  in  operating
activities ($709,000),  improvements to property and equipment ($59,000),  costs
paid relating to sale of  properties  ($438,000),  repayments of mortgage  notes
($192,000),  an increase in deferred cost ($4,000), a decrease in capitalization
of consolidated  subsidiaries  attributable to minority interest  ($212,000) and
distributions  ($2,778,000)  which  exceeded a  decrease  in cash held in escrow
relating to investing  activities  ($55,000),  proceeds from sale of investments
($3,435,000)  and a net increase in due to local general partners and affiliates
relating  to finance  activities  ($303,000).  Included  in the  adjustments  to
reconcile net loss to net cash used in operating  activities is depreciation and
amortization  of  approximately  ($1,282,000)  and a gain on sale of  properties
($85,000).

Total  expenses for the three and six months ended  September 15, 2007 and 2006,
excluding   depreciation   and   amortization,    interest   and   general   and
administrative-related parties, totaled $1,690,788,  $1,871,652,  $3,881,680 and
$4,067,093, respectively.

Accounts  payable as of September 15, 2007 and March 15, 2007,  were  $2,278,342
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  September  15, 2007 and March 15,  2007,
totaled $186,729 and $95,669, respectively.

Accrued  interest  payable  as of  September  15,  2007 and March  15,  2007 was
$5,568,160 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 September 15, 2007 and March 15, 2007,  totaled
$1,405,277 and $56,532, respectively.

A  working  capital  reserve  of  approximately  $5,144,000  remained  unused at
September 15, 2007.

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

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

Partnership   management  fees  owed  to  the  General  Partners   amounting  to
approximately  $2,620,000 and $2,574,000 were accrued and unpaid as of September
15, 2007 and March 15, 2007,  respectively.  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).

For a discussion of contingencies affecting certain Local Partnerships, see Item
1, 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, during which the Properties must
comply with various rent and other restrictions. The compliance periods continue
through December 31, 2008 with respect to the Properties depending upon when the
Tax Credit Periods commenced.

                                       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.

Except as  described  above,  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 six months ended September 15, 2007, the Partnership has not recorded
any loss on impairment of assets or reduction to estimated  fair value.  Through
September 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 September 15, 2007 and March 15, 2007, the  Partnership  has
recorded  property and equipment net of accumulated  depreciation  of $5,329,321
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.

                                       14
<PAGE>

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

The results of operations for the three and six months ended  September 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).

Rental  income  decreased  approximately  8% and 6% for the three and six months
ended  September  15,  2007 as compared  to the  corresponding  periods in 2006,
primarily due to an increase in vacancies due to the cancellation of a Section 8
contract  at one Local  Partnership  (see Note 6a) and a decrease  in  occupancy
rates at two other Local Partnerships.

Total expenses,  excluding general and  administrative,  repairs and maintenance
and financial, remained fairly consistent with an increase of less than 1% and a
decrease of  approximately  5% for the three and six months ended  September 15,
2007 as compared to the corresponding periods in 2006.

General  and  administrative   expenses  increased  approximately  $114,000  and
$166,000  for the three and six months ended  September  15, 2007 as compared to
the  corresponding  periods  in 2006,  primarily  due to an  increase  in office
payroll and expenses  resulting from a change in management company at one Local
Partnership and increases in office salaries and payroll taxes at a second Local
Partnership,  partially  offset by  decreases  in legal  fees and  miscellaneous
administrative expenses at the Partnership level.

Repairs and maintenance expenses decreased  approximately  $307,000 and $247,000
for the three  and six  months  ended  September  15,  2007 as  compared  to the
corresponding  periods in 2006,  primarily  due to decreases in major  apartment
repairs,  boiler  repairs and a special  grant  received  for labor and supplies
needed for  repairs  to the  property  at one Local  Partnership,  decreases  in
security,   elevator  and  ground  maintenance   contracts  at  a  second  Local
Partnership  and decreases in decorating  and exterior  repairs at a third Local
Partnership.

Financial expenses decreased  approximately  $143,000 and $159,000 for the three
and six months ended September 15, 2007 as compared to the corresponding periods
in 2006,  primarily due to an interest  rate  adjustment on its mortgage note at
one 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  disclosed  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: October 22, 2007
      ----------------
                                    By:  /s/ Robert L. Levy
                                         ------------------
                                         Robert L. Levy
                                         Chief Financial Officer



Date: October 22, 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: October 22, 2007
      ----------------
                                         By:  /s/ Robert L. Levy
                                              ------------------
                                              Robert L. Levy
                                              Chief Financial Officer



Date: October 22, 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
         September 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  fiscal  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: October 22, 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
         September 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  fiscal  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: October 22, 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  September 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
     October 22, 2007                                    October 22, 2007