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, 2004

                                       OR

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


                         Commission File Number 0-17015


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


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


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


Registrant's telephone number, including area code (212)421-5333

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

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

<PAGE>
                         PART I - Financial Information

Item 1.  Financial Statements

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)
<TABLE>
<CAPTION>
                                               =============      =============
                                                  June 15,          March 15,
                                                   2004               2004
                                               -------------      -------------
<S>                                            <C>                <C>
ASSETS
Property and equipment, at cost,
  net of accumulated depreciation
  of $110,986,616 and $121,278,707
  respectively                                 $ 106,328,614      $ 120,489,756
Property and equipment -
  held for sale, net of accumulated
  depreciation of $7,572,358 and $0                6,076,671                  0
Cash and cash equivalents                          4,644,172          5,224,728
Cash held in escrow                               15,309,283         15,550,003
Accounts receivable - tenants                        395,020            938,800
Deferred costs - net of accumulated
  amortization of $2,051,102
  and $2,394,139, respectively                     2,248,521          2,609,060
Other assets                                       1,560,343          1,373,958
                                               -------------      -------------
Total assets                                   $ 136,562,624      $ 146,186,305
                                               =============      =============
</TABLE>

                                       2
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)
                                   (continued)
<TABLE>
<CAPTION>
                                               =============      =============
                                                  June 15,          March 15,
                                                   2004               2004
                                               -------------      -------------
<S>                                            <C>                <C>
LIABILITIES AND PARTNERS' DEFICIT
Liabilities:
  Mortgage notes payable                       $ 128,841,360      $ 136,800,161
  Accounts payable and other
   liabilities                                    12,373,455         14,571,500
  Due to local general partners and
   affiliates                                     20,274,461         19,979,284
  Due to general partners and
   affiliates                                      8,837,225          8,568,329
  Due to selling partners                          1,292,934          1,292,934
                                               -------------      -------------
Total liabilities                                171,619,435        181,212,208
                                               -------------      -------------


Minority interest                                    628,895          1,654,689
                                               -------------      -------------

Commitments and contingencies
  (Note 4)

Partners' deficit:
  Limited partners (15,987.5 BACs
   issued and outstanding)                       (34,599,005)       (35,583,942)
  General partners                                (1,086,701)        (1,096,650)
                                               -------------      -------------
Total partners' deficit                          (35,685,706)       (36,680,592)
                                               -------------      -------------
Total liabilities and partners'
  deficit                                      $ 136,562,624      $ 146,186,305
                                               =============      =============
</TABLE>

          See accompanying notes to consolidated financial statements.
                                       3
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                 ==============================
                                                       Three Months Ended
                                                            June 15,
                                                 ------------------------------
                                                     2004              2003
                                                 ------------------------------
<S>                                              <C>               <C>
Revenues
Rental income                                    $  7,950,362      $  8,394,143
Other                                                 262,767           318,448
Gain on sale of properties (Note 3)                 2,504,461         1,285,639
                                                 ------------      ------------
                                                   10,717,590         9,998,230
                                                 ------------      ------------
Expenses
General and administrative                          1,450,241         1,448,792
General and administrative-
  related parties (Note 2)                            584,382           640,705
Repairs and maintenance                             2,052,396         1,670,458
Operating and other                                 1,406,383         1,470,087
Taxes                                                 374,231           361,116
Insurance                                             453,550           463,593
Financial                                           2,525,975         2,641,742
Depreciation and amortization                       1,874,634         2,093,887
                                                 ------------      ------------

Total expenses                                     10,721,792        10,790,380
                                                 ------------      ------------

Loss before minority
  interest                                             (4,202)         (792,150)

Minority interest in loss of
  subsidiaries                                        999,088           230,706
                                                 ------------      ------------

Net income (loss)                                $    994,886      $   (561,444)
                                                 ============      ============

Net income (loss) - limited partners             $    984,937      $   (555,830)
                                                 ============      ============

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

Net income (loss) per BAC                        $      61.61      $     (34.77)
                                                 ============      ============
</TABLE>

          See accompanying notes to consolidated financial statements.
                                       4
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
             Consolidated Statement of Changes in Partners' Deficit
                                   (Unaudited)
<TABLE>
<CAPTION>
                             ==================================================
                                                  Limited            General
                                Total             Partners           Partners
                             --------------------------------------------------
<S>                          <C>                <C>                <C>
Partners'
  deficit -
  March 16, 2004             $(36,680,592)      $(35,583,942)      $ (1,096,650)

Net income                        994,886            984,937              9,949
                             ------------       ------------       ------------

Partners'
  deficit -
  June 15, 2004              $(35,685,706)      $(34,599,005)      $ (1,086,701)
                             ============       ============       ============
</TABLE>

          See accompanying notes to consolidated financial statements.
                                       5
<PAGE>


                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (decrease) in Cash and Cash Equivalents
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                   ============================
                                                        Three Months Ended
                                                             June 15,
                                                   ----------------------------
                                                       2004            2003
                                                   ----------------------------
<S>                                                <C>             <C>
Net income (loss)                                  $    994,886    $   (561,444)

Adjustments to reconcile net income
  (loss) to net cash (used in) provided
  by operating activities:

Gain on sale of properties (Note 3)                  (2,504,461)     (1,285,639)
Depreciation and amortization                         1,874,634       2,093,887
Minority interest in loss of
  subsidiaries                                         (999,088)       (230,706)
Decrease in accounts
  receivable-tenants                                    525,375         143,274
(Increase) decrease in other assets                    (186,385)        185,299
Increase in accounts payable and
  other liabilities                                     105,140         267,021
Increase in due to general partners
  and affiliates                                        297,229         107,808
(Increase) decrease in cash held
  in escrow                                            (203,835)        198,829
                                                   ------------    ------------

Net cash (used in) provided by
  operating activities                                  (96,505)        918,329
                                                   ------------    ------------

Cash flows from investing activities:

Proceeds from sales                                           0         764,997
Decrease (increase) in cash held in
  escrow                                                 76,596        (666,425)
Improvements to property and
  equipment                                            (200,317)       (346,922)
                                                   ------------    ------------

Net cash used in investing activities                  (123,721)       (248,350)
                                                   ------------    ------------
</TABLE>

                                       6
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (decrease) in Cash and Cash Equivalents
                                   (Unaudited)
                                   (continued)
<TABLE>
<CAPTION>
                                                   ============================
                                                        Three Months Ended
                                                             June 15,
                                                   ----------------------------
                                                       2004            2003
                                                   ----------------------------
<S>                                                <C>             <C>
Cash flows from financing activities:

Repayments of mortgage notes                           (628,801)     (1,151,301)
Increase in due to local general
  partners and affiliates                               384,334         736,776
Decrease in due to local general
  partners and affiliates                               (89,157)       (866,764)
Decrease in capitalization of
  consolidated subsidiaries
  attributable to minority interest                     (26,706)        (13,568)
                                                   ------------    ------------

Net cash used in
  financing activities                                 (360,330)     (1,294,857)
                                                   ------------    ------------

Net decrease in cash and cash
  equivalents                                          (580,556)       (624,878)

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

Cash and cash equivalents at
  end of period                                    $  4,644,172    $  5,442,384
                                                   ============    ============

Supplemental disclosures of noncash
  investing and financing activities:

Increase in property  and  equipment -
  held for sale,  net of  accumulated  dep-
  reciation, reclassified from property
  and equipment                                    $  6,076,671    $ 11,805,319
</TABLE>


                                       7
<PAGE>
                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Cash Flows
                Increase (decrease) in Cash and Cash Equivalents
                                   (Unaudited)
                                   (continued)
<TABLE>
<CAPTION>
                                                   ============================
                                                        Three Months Ended
                                                             June 15,
                                                   ----------------------------
                                                       2004            2003
                                                   ----------------------------
<S>                                                <C>             <C>
Summarized below are the components
  of the gain on sale of properties:

Decrease in property and
  equipment, net of accumulated                       6,456,523       3,734,861
Decrease in mortgage notes payable                   (7,330,000)     (3,757,743)
Decrease in due to general partner
  and affiliates                                        (28,333)        (27,500)
Decrease in due to local general
  partner and affiliates                                      0        (470,260)
Decrease in cash held in escrow                         367,959               0
Decrease in rents receivable                             18,405               0
Decrease in accounts payable and
  other liabilities                                  (2,303,185)              0
Decrease in deferred costs                              314,170               0
</TABLE>

          See accompanying notes to consolidated financial statements.
                                       8
<PAGE>

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


Note 1 - General

The consolidated  financial  statements for the three months ended June 15, 2004
and  2003,   include  the  accounts  of  Liberty  Tax  Credit  Plus  L.P.   (the
"Partnership")  and  27 and  30  subsidiary  partnerships  (each  a  "subsidiary
partnership" or "Local Partnership"),  respectively, in which the Partnership is
a  limited  partner.  Through  the  rights of the  Partnership  and/or a general
partner of the  Partnership (a "General  Partner"),  which General Partner has a
contractual  obligation  to act on behalf  of the  Partnership,  to  remove  the
general partners of each subsidiary  partnership (the "local general  partners")
and to approve certain major operating and financial decisions,  the Partnership
has a  controlling  financial  interest  in  the  subsidiary  partnerships.  All
intercompany  accounts and transactions  with the subsidiary  partnerships  have
been eliminated in consolidation.

For financial reporting purposes,  the Partnership's fiscal quarter ends on 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  generally
accepted accounting principles ("GAAP").

In the opinion of the General  Partners,  the accompanying  unaudited  financial
statements  contain  all  adjustments   (consisting  only  of  normal  recurring
adjustments)   necessary  to  present  fairly  the  financial  position  of  the
Partnership as of June 15, 2004 and March 15, 2004 and the results of operations
and cash flows for the three months ended June 15, 2004 and 2003.  However,  the
operating  results and cash flows for the three  months  ended June 15, 2004 may
not be indicative of the results for the year.

Certain  information  and  note  disclosures  which  are  normally  included  in
financial  statements  prepared  in  accordance  with GAAP have been  omitted or
condensed. These consolidated financial statements should be read in conjunction
with the financial  statements and notes thereto  included in the  Partnership's
Annual Report on Form 10-K for the period ended March 15, 2004.

                                       9
<PAGE>

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


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

The  Partnership's  investment in each  subsidiary  partnership  is equal to the
respective  subsidiary  partnership's  partners'  equity less minority  interest
capital,  if any.  Losses  attributable  to minority  interests which exceed the
minority interests' investments in the subsidiary partnerships have been charged
to the Partnership. Such losses aggregate approximately $0 for each of the three
month  periods ended June 15, 2004 and 2003. 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.

                                       10
<PAGE>

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


The costs  incurred to related  parties for the three months ended June 15, 2004
and 2003 were as follows:
<TABLE>
<CAPTION>
                                                            Three Months Ended
                                                                  June 15,
                                                           ---------------------
                                                             2004         2003
                                                           ---------------------
<S>                                                        <C>          <C>
Partnership management fees (a)                            $261,750     $269,250
Expense reimbursement (b)                                    30,314       23,767
Property management fees incurred to
  affiliates of the General Partners (c)                     23,653       27,441
Local administrative fee (d)                                 13,000       14,000
                                                           --------     --------

Total general and administrative
  General Partners                                          328,717      334,458
                                                           --------     --------

Property management fees incurred to
  affiliates of the local general partners (c)              255,665      306,247
                                                           --------     --------

Total general and administrative-related
  parties                                                  $584,382     $640,705
                                                           ========     ========
</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  $8,173,000 and  $7,911,000  were
accrued and unpaid as of June 15, 2004 and March 15, 2004, respectively.

(b) The  Partnership  reimburses the General  Partners and their  affiliates for
actual Partnership operating expenses incurred by the General Partners and their
affiliates on the  Partnership's  behalf.  The amount of reimbursement  from the
Partnership is limited by the provisions of the Partnership  Agreement.  Another
affiliate of the General Partners performs asset monitoring for the Partnership.
These   services   include  site  visits  and   evaluations  of  the  subsidiary

                                       11
<PAGE>

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


partnerships' performance. Expense reimbursements and asset monitoring fees owed
to Related Credit Properties L.P., a General Partner, amounting to approximately
$120,000  and $90,000  were accrued and unpaid as of June 15, 2004 and March 15,
2004, respectively.

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

(c) Property management fees incurred by the subsidiary partnerships amounted to
$467,430  and  $455,660  for the  three  months  ended  June 15,  2004 and 2003,
respectively.  Of these fees,  $255,665 and $306,247 were incurred to affiliates
of the local general partners. In addition, $23,653 and $27,441 were incurred to
affiliates of the General Partners.

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


Note 3  - Sale of Properties

On May 11, 2004, 2108 Bolton Drive Associated,  L.P.  ("Bolton")  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 purchase price of
$9,800,000.  The closing is expected to occur in late 2004. No assurances can be
given that the sale will actually occur.

On March 31, 2004, the property and the related assets and liabilities of Walnut
Park Plaza  ("Walnut")  were sold to the Local  General  Partner  for a purchase
price  of $1  plus  the  assumption  of  all  the  related  debt  which  totaled
approximately  $7,732,000 resulting in a gain of approximately  $2,504,000.  The
sale resulted in the liquidation of Walnut.

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

                                       12
<PAGE>

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



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

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

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

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


Note 4 - Commitments and Contingencies

Redwood Villa Associates, L.P.
------------------------------
Redwood Villa Associates,  L.P. ("Redwood") has sustained operating losses since
its  inception,  and at June 15, 2004 had a partners'  deficit of  approximately
$1,728,000. Redwood has been able to defer ground lease payments that are due to
a related party. The Local General Partner,  whenever possible,  plans to reduce
operating  costs to achieve  profitable  operations  or provide  future  capital
contributions.

                                       13
<PAGE>

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


Autumn Park Associates, L.P.
----------------------------
As of June 15,  2004,  Autumn Park  Associates,  L.P.'s  ("Autumn  Park")  total
liabilities  exceeded its total assets by  approximately  $861,000.  Autumn Park
faces uncertain conditions regarding the deterioration and needed repairs of the
buildings, tenants' turnover and vacancies and debt service requirements. Autumn
Park's  management  has  developed  and  implemented  a plan to  improve  tenant
selection  in order  to  reduce  turnovers  and  vacancies.  The  management  is
developing  a plan to  refinance  the mortgage to reduce its annual debt service
obligation.


                                       14
<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, 2004, the  properties  and the related assets and  liabilities of four Local
Partnerships and the limited partnership  interest in one Local Partnership were
sold. For a discussion of these sales of the Local  Partnerships,  see Note 3 to
the financial statements.

The Partnership's  primary source of funds is cash distributions from operations
of the Local  Partnerships in which the  Partnership  has invested.  Such funds,
although  minimal,  are available to meet the  obligations  of the  Partnership.
During  the  three  months  ended  June 15,  2004 and 2003,  such  distributions
amounted to  approximately  $113,000  and  $29,000,  respectively.  In addition,
partnership  management  fees and  expense  reimbursements  owed to the  General
Partners  amounting to approximately  $8,294,000 and $8,001,000 were accrued and
unpaid as of June 15, 2004 and March 15, 2004, respectively. Without the General
Partners' continued accrual without payment of the partnership  management fees,
the Partnership will not be in a position to meet its  obligations.  The General
Partners  have  allowed  for the  accrual  without  payment  of a portion of the
partnership management fees but are under no obligation to continue to do so.

For the three  months  ended June 15,  2004,  cash and cash  equivalents  of the
Partnership and its  consolidated  Local  Partnerships  decreased  approximately
$581,000. This decrease is attributable to net cash used in operating activities
($97,000),   improvements  to  property  and  equipment  ($200,000),   principal
repayment of mortgage  notes  ($629,000),  and a decrease in  capitalization  of
consolidated  subsidiaries  attributable  to minority  interest  ($27,000) which
exceeded a decrease in cash held in escrow  ($77,000)  and a net increase in due
to  local  general  partners  and  their  affiliates  ($295,000).   Included  in
adjustments  to reconcile  the net loss to cash used in operating  activities is
depreciation and amortization of approximately  ($1,875,000) and gain on sale of
properties of approximately ($2,504,000).

For a discussion of contingencies affecting certain Local Partnerships, see Note
4 to the financial  statements.  Since the maximum loss the Partnership would be
liable for is its net  investment  in the  respective  Local  Partnerships,  the
resolution of the existing  contingencies  is not  anticipated  to impact future
results of  operations,  liquidity  or financial  condition  in a material  way.
However,  the  Partnership's  loss of its investment in a Local  Partnership may
result  in  recapture  of tax  credits  if the  investment  is lost  before  the
expiration of the applicable compliance period.

                                       15
<PAGE>

Management is not aware of any trends or events,  commitments  or  uncertainties
which have not  otherwise  been  disclosed  that  will,  or are likely to impact
liquidity in a material way.  Management  believes the only impact would be from
laws  that  have not yet been  adopted.  The  portfolio  is  diversified  by the
location of the  properties  around the United States so that if one area of the
country is experiencing  downturns in the economy,  the remaining  properties in
the  Partnership's   portfolio  may  be  experiencing  upswings.   However,  the
geographic  diversification  of the portfolio may not protect  against a general
downturn in the national economy.

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

In  preparing  the  consolidated  financial  statements,   management  has  made
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities at the date of the financial  statements and the reported amounts of
revenues and expenses during the reporting periods.  Actual results could differ
from those  estimates.  Set forth below is a summary of the accounting  policies
that  management  believes are critical to the  preparation of the  consolidated
financial  statements.  The summary should be read in conjunction  with the more
complete discussion of the Partnership accounting policies included in Note 2 to
the consolidated financial statements in the annual report on Form 10-K.

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

Property and  equipment  to be held and used are carried at cost which  includes
the purchase price,  acquisition fees and expenses, and any other costs incurred
in acquiring the  properties.  The cost of property and equipment is depreciated
over their estimated useful lives using accelerated and  straight-line  methods.
Expenditures  for repairs and  maintenance  are charged to expense as  incurred;
major  renewals  and  betterments  are  capitalized.  At the time  property  and
equipment  are  retired  or  otherwise  disposed  of,  the cost and  accumulated
depreciation  are  eliminated  from  the  assets  and  accumulated  depreciation
accounts  and the profit or loss on such  disposition  is reflected in earnings.
The Partnership complies with Statement of Financial Accounting Standards (SFAS)
No. 144 "Accounting for the Impairment or Disposal of Long-Lived Assets". A loss
on  impairment  of  assets  is  recorded  when  management   estimates   amounts
recoverable   through  future   operations  and  sale  of  the  property  on  an
undiscounted basis are below depreciated cost. At that time property investments
themselves are reduced to estimated fair value  (generally using discounted cash
flows).

At the time management  commits to a plan to dispose of assets,  said assets are
adjusted to the lower of carrying amount or fair value less costs to sell. These
assets  are  classified  as  property  and  equipment-held  for sale and are not
depreciated.  For the three  months  ended June 15, 2004,  the  Partnership  has
recorded property and equipment net of accumulated depreciation of $6,076,671 as
held for sale.

                                       16
<PAGE>

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

Rental  income  decreased  approximately  5% for the three months ended June 15,
2004 as compared to the corresponding period in 2003. Excluding the Sold Assets,
rental income remained fairly consistent with a decrease of approximately 3% for
the three months ended June 15, 2004 as compared to the corresponding  period in
2003,  primarily due to a grant  received by one Local  Partnership  in 2003 and
increased vacancy at a second and third Local Partnership.

Repairs and maintenance  increased  approximately  $382,000 for the three months
ended June 15, 2004 as compared to the corresponding  period in 2003.  Excluding
the Sold  Assets,  repairs and  maintenance  increased  approximately  $423,000,
primarily due to rehabilitation of the apartments  including sliding patio doors
and new roofing at one Local Partnership, increased repairs and overtime expense
due to a fire at a second Local  Partnership and increased  turnovers at a third
Local Partnership.

Other income and depreciation and amortization  decreased  approximately $56,000
and $219,000,  respectively,  for the quarter ended June 15, 2004 as compared to
the corresponding period in 2003, primarily due to decreases related to the Sold
Assets.

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

Item 3. Quantitative and Qualitative Disclosures about Market Risk

The Partnership does not have any market risk sensitive instruments.


                                       17
<PAGE>

Item 4.  Controls and Procedures

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

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

                                       18
<PAGE>

                           PART II. OTHER INFORMATION

Item 1.    Legal Proceedings - None

Item 2.    Changes in Securities and Use of Proceeds - None

Item 3.    Defaults Upon Senior Securities - None

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

Item 5.    Other Information - None

Item 6.    Exhibits and Reports on Form 8-K

           (a)    Exhibits

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

           (b)    Reports on Form 8-K - None

                                       19
<PAGE>

                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned, thereunto duly authorized.

                          LIBERTY TAX CREDIT PLUS L.P.
                          ----------------------------
                                  (Registrant)

                             By: RELATED CREDIT PROPERTIES L.P.,
                                 a General Partner

                                 By: Related Credit Properties Inc.,
                                     its General Partner

Date: July 22, 2004
                                     By: /s/ Alan P. Hirmes
                                         ------------------
                                         Alan P. Hirmes,
                                         President and Chief Executive
                                         Officer
                                         (Principal Executive and Financial
                                         Officer)

Date: July 22, 2004
                                     By: /s/ Glenn F. Hopps
                                         ------------------
                                         Glenn F. Hopps,
                                         Treasurer
                                         (Principal Accounting Officer)

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

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

                                     By: Related Credit Properties Inc.,
                                         its General Partner

Date: July 22, 2004
                                         By: /s/ Alan P. Hirmes
                                             ------------------
                                             Alan P. Hirmes,
                                             President and Chief
                                             Executive Officer
                                             (Principal Executive and
                                             Financial Officer)

Date: July 22, 2004
                                         By: /s/ Glenn F. Hopps
                                             ------------------
                                             Glenn F. Hopps,
                                             Treasurer
                                             (Principal Accounting
                                             Officer)


<PAGE>


                                                                    Exhibit 31.1


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

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

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

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

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

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

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

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



<PAGE>


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

         d) disclosed in this quarterly  report any change in the  Partnership's
         internal  control over  financial  reporting  that occurred  during the
         period  ending  June 15,  2004  that  has  materially  affected,  or is
         reasonably  likely to materially  affect,  the  Partnership's  internal
         control over financial reporting; and

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

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

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



                             By: /s/ Alan P. Hirmes
                                 ------------------
                                 Alan P. Hirmes
                                 Principal Executive Officer and
                                 Principal Financial Officer
                                 July 22, 2004


<PAGE>


                                                                    Exhibit 32.1


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


In  connection  with the  Quarterly  Report of Liberty Tax Credit Plus L.P. (the
"Partnership")  on Form 10-Q for the period  ending  June 15, 2004 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 22, 2004