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 December 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>
                                               =============      =============
                                                December 15,         March 15,
                                                   2004                2004
                                               -------------      -------------
<S>                                            <C>                <C>
ASSETS
Property and equipment, at cost,
  net of accumulated depreciation
  of $108,236,516 and $121,278,707
  respectively                                 $  98,332,554      $ 120,489,756
Cash and cash equivalents                          5,648,193          5,224,728
Cash held in escrow                               15,091,801         15,550,003
Accounts receivable - tenants                        648,350            938,800
Deferred costs - net of accumulated
  amortization of $1,924,407
  and $2,394,139, respectively                     1,994,791          2,609,060
Other assets                                       1,756,085          1,373,958
                                               -------------      -------------
Total assets                                   $ 123,471,774      $ 146,186,305
                                               =============      =============
</TABLE>

                                       2
<PAGE>
                         LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                           Consolidated Balance Sheets
                                   (Unaudited)
                                   (continued)
<TABLE>
<CAPTION>
                                               =============      =============
                                                December 15,         March 15,
                                                   2004                2004
                                               -------------      -------------
<S>                                            <C>                <C>
LIABILITIES AND PARTNERS' DEFICIT
Liabilities:
  Mortgage notes payable                       $ 113,710,039      $ 136,800,161
  Accounts payable and other
   liabilities                                    13,193,788         14,571,500
  Due to local general partners and
   affiliates                                     20,454,392         19,979,284
  Due to general partners and
   affiliates                                      9,095,460          8,568,329
  Due to selling partners                          1,292,934          1,292,934
                                               -------------      -------------
Total liabilities                                157,746,613        181,212,208
                                               -------------      -------------

Minority interest                                    965,259          1,654,689
                                               -------------      -------------

Commitments and contingencies
  (Note 4)

Partners' deficit:
  Limited partners (15,987.5 BACs
   issued and outstanding)                       (34,157,853)       (35,583,942)
  General partners                                (1,082,245)        (1,096,650)
                                               -------------      -------------
Total partners' deficit                          (35,240,098)       (36,680,592)
                                               -------------      -------------
Total liabilities and partners'
  deficit                                      $ 123,471,774      $ 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                Nine Months Ended
                                      December 15,                     December 15,
                             ----------------------------    ----------------------------
                                 2004            2003*           2004            2003*
                             ----------------------------    ----------------------------
<S>                          <C>             <C>             <C>             <C>
Operations:

Revenues
Rental income                $  7,105,917    $  7,041,993    $ 21,086,032    $ 21,321,475
Other                             173,933         311,136         663,785         832,995
                             ------------    ------------    ------------    ------------
                                7,279,850       7,353,129      21,749,817      22,154,470
                             ------------    ------------    ------------    ------------
Expenses
General and
  administrative                1,158,880       1,197,930       3,554,688       3,727,967
General and
  administrative-
  related parties
  (Note 2)                        581,188         600,003       1,726,471       1,774,756
Repairs and
  maintenance                   1,685,556       1,758,194       5,157,909       4,752,257
Operating and
  other                           762,143         744,679       2,957,968       3,056,379
Taxes                             371,762         445,620         975,744       1,025,543
Insurance                         431,684         394,036       1,213,997       1,109,934
Financial                       2,246,168       2,294,096       6,349,543       6,609,660
Depreciation and
  amortization                  1,891,488       1,632,923       5,509,936       4,898,761
                             ------------    ------------    ------------    ------------

Total expenses                  9,128,869       9,067,481      27,446,256      26,955,257
                             ------------    ------------    ------------    ------------

Loss from operations
  before minority
  interest                     (1,849,019)     (1,714,352)     (5,696,439)     (4,800,787)

Minority interest
  in loss of
  subsidiaries from
  operations                        5,493           4,272          14,848           7,324
                             ------------    ------------    ------------    ------------

Loss from operations           (1,843,526)     (1,710,080)     (5,681,591)     (4,793,463)
                             ------------    ------------    ------------    ------------

Discontinued operations:

Income (loss) from
  discontinued
  operations (including
  gain on sale of
  properties) (Note 6)          4,149,109        (490,496)      7,122,085         453,067
                             ------------    ------------    ------------    ------------

Net income (loss)            $  2,305,583    $ (2,200,576)   $  1,440,494    $ (4,340,396)
                             ============    ============    ============    ============
</TABLE>

                                       4
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                      Consolidated Statements of Operations
                                   (Unaudited)
                                   (continued)
<TABLE>
<CAPTION>
                             ============================    ============================
                                 Three Months Ended                Nine Months Ended
                                      December 15,                     December 15,
                             ----------------------------    ----------------------------
                                 2004            2003*           2004            2003*
                             ----------------------------    ----------------------------
<S>                          <C>             <C>             <C>             <C>


Loss from operations -
   limited partners            (1,825,090)     (1,692,979)     (5,624,775)     (4,745,528)

Income (loss) from
  discontinued oper-
  ations (including gain
  on sale of properties) -
  limited partners              4,107,617        (485,591)      7,050,864         448,536
                             ------------    ------------    ------------    ------------

Net income (loss) -
  limited partners           $  2,282,527    $ (2,178,570)   $  1,426,089    $ (4,296,992)
                             ============    ============    ============    ============

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

Loss from operations
  per BAC                         (114.16)        (105.90)        (351.82)        (296.83)

Income (loss) from
  discontinued
  operations (including
  gain on sale of prop-
  erties) per BAC                  256.93          (30.37)         441.02           28.06
                             ------------    ------------    ------------    ------------

Net income (loss)
  per BAC                    $     142.77    $    (136.27)   $      89.20    $    (268.77)
                             ============    ============    ============    ============
</TABLE>


* Reclassified for comparative purposes.

See accompanying notes to consolidated financial statements.


                                       5
<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               1,440,494       1,426,089          14,405
                      ------------    ------------    ------------

Partners' deficit -
  December 15, 2004   $(35,240,098)   $(34,157,853)   $ (1,082,245)
                      ============    ============    ============
</TABLE>


See accompanying notes to consolidated financial statements.

                                       6
<PAGE>

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

Net income (loss)                          $  1,440,494    $ (4,340,396)
Adjustments to reconcile net income
  (loss) to net cash provided by
  operating activities:
Income from discontinued operations
  (including gain on sale of properties -
  Notes 3 and 6)                             (7,122,085)       (453,067)
Depreciation and amortization                 5,509,936       4,898,761
Minority interest in loss of
  subsidiaries                                  (14,848)         (7,324)
Decrease in accounts
  receivable-tenants                            297,376         131,715
Increase in other assets                     (1,036,804)         (3,918)
Increase in accounts payable and
  other liabilities                           1,581,844       1,282,146
Increase in due to general partners
  and affiliates                                839,476         534,170
Increase in cash held in escrow                (677,299)       (412,777)
                                           ------------    ------------

Net cash provided by operating
  activities                                    818,090       1,629,310
                                           ------------    ------------

Cash flows from investing activities:

Proceeds from sale of properties              1,224,789         504,984
Decrease (increase) in cash held
  in escrow                                     288,138        (218,057)
Improvements to property and
  equipment                                  (1,099,721)       (776,519)
                                           ------------    ------------

Net cash provided by (used in) investing
  activities                                    413,206        (489,592)
                                           ------------    ------------
</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>
                                           ============================
                                                 Nine Months Ended
                                                    December 15,
                                           ----------------------------
                                              2004             2003*
                                           ----------------------------
<S>                                        <C>             <C>
Cash flows from financing activities:

Repayments of mortgage notes                 (1,828,243)     (2,407,336)
Increase in due to local general
  partners and affiliates                     1,061,896         739,428
Decrease in due to local general
  partners and affiliates                      (329,044)       (589,691)
Increase in capitalization of
  consolidated subsidiaries
  attributable to minority interest             287,560          55,178
                                           ------------    ------------

Net cash used in financing activities          (807,831)     (2,202,421)
                                           ------------    ------------

Net increase (decrease) in cash and
  cash equivalents                              423,465      (1,062,703)

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

Cash and cash equivalents at
  end of period                            $  5,648,193    $  5,004,559
                                           ============    ============

Supplemental disclosures of
  noncash activities:
Increase in property and equipment-
  held for sale reclassified from
  property and equipment                   $          0    $  8,952,525
</TABLE>

                                       8
<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>
                                           ============================
                                                 Nine Months Ended
                                                    December 15,
                                           ----------------------------
                                              2004             2003*
                                           ----------------------------
<S>                                        <C>             <C>
Summarized below are the
  components of the discontinued
  operations (including gain on sale
  of properties):
Decrease in property and
  equipment, net of accumulated
  depreciation                             $ 17,874,259    $  7,524,476
Decrease in mortgage notes payable          (21,261,879)     (6,442,728)
Decrease in mortgage escrow
  deposits                                      297,852         476,531
Decrease in cash-restricted for
  tenants security deposits                     116,134               0
Decrease in reserve for replacement             433,377               0
Decrease (increase) in prepaid
  expenses and other assets                     654,677         (15,831)
Increase in accounts receivable                  (6,926)        (70,746)
Decrease in deferred costs                      486,997         310,908
(Decrease) increase in accounts
  payable, accrued expenses and
  other liabilities                          (2,959,556)        221,259
Decrease in due to general partners
  and affiliates                               (312,345)        (43,009)
Decrease in due to local general
  partner and affiliates                       (257,744)     (1,444,227)
Decrease in capitalization of
  consolidated subsidiaries attributable
  to minority interest                         (962,142)       (464,716)
</TABLE>


* Reclassified for comparative purposes.

See accompanying notes to consolidated financial statements.

                                       9
<PAGE>

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


Note 1 - General

The  consolidated  financial  statements  for the nine months ended December 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
December 15. All subsidiary  partnerships  have fiscal quarters ending September
30. Accounts of the subsidiary  partnerships have been adjusted for intercompany
transactions from October 1 through December 15. The Partnership's  quarter ends
on December 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 December 15, 2004, the results of operations for the three and
nine months ended  December 15, 2004 and 2003 and cash flows for the nine months
ended December 15, 2004 and 2003. However,  the operating results and cash flows
for the nine months ended December 15, 2004 may not be indicative of the results
for the year.

In accordance with FASB 144, 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 consolidated financial statements.  Adjustments to
amounts  previously  reported in  operations  that are  directly  related to the

                                       10
<PAGE>

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


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.

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.

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

The  Partnership's  investment in each  subsidiary  partnership  is equal to the
respective  subsidiary  partnership's  partners'  equity less minority  interest
capital,  if any.  Losses  attributable  to minority  interests which exceed the
minority interests' investments in the subsidiary partnerships have been charged
to the Partnership.  Such losses aggregate approximately $0 and $10,000 for both
the three and nine months  ended  December 15, 2004 and 2003,  respectively.  In
consolidation,   all   subsidiary   partnership   losses  are  included  in  the
Partnership's  capital account except for losses allocated to minority  interest
capital.

                                       11
<PAGE>

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


Note 2 - Related Party Transactions

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

The costs  incurred  to  related  parties  for the three and nine  months  ended
December  15,  2004  and  2003  classified  as  operations  on the  Consolidated
Statements of Operations were as follows:
<TABLE>
<CAPTION>

                           Three Months Ended         Nine Months Ended
                                December 15,              December  15,
                         -----------------------   -----------------------
                            2004         2003         2004         2003
                         -----------------------   -----------------------
<S>                      <C>          <C>          <C>          <C>
Partnership manage-
  ment fees (a)          $  269,250   $  269,250   $  800,250   $  807,750
Expense reimburse-
  ment (b)                   47,431       59,865      131,675      142,014
Local administrative
  fee (d)                    10,500       11,500       31,500       34,500
                         ----------   ----------   ----------   ----------
Total general and
  administrative-
  General Partners          327,181      340,615      963,425      984,264
                         ----------   ----------   ----------   ----------
Property manage-
  ment fees
  incurred to affili-
  ates of the local
  general partners (c)      254,007      259,388      763,046      790,492
                         ----------   ----------   ----------   ----------

Total general and
  administrative-
  related parties        $  581,188   $  600,003   $1,726,471   $1,774,756
                         ==========   ==========   ==========   ==========
</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

                                       12
<PAGE>

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


General  Partners  amounting to  approximately  $8,587,000 and  $7,911,000  were
accrued and unpaid as of December 15, 2004 and March 15, 2004, respectively.

(b) The  Partnership  reimburses the General  Partners and their  affiliates for
actual Partnership operating expenses incurred by the General Partners and their
affiliates on the  Partnership's  behalf.  The amount of reimbursement  from the
Partnership is limited by the provisions of the Partnership  Agreement.  Another
affiliate of the General Partners performs asset monitoring for the Partnership.
These   services   include  site  visits  and   evaluations  of  the  subsidiary
partnerships' performance. Expense reimbursements and asset monitoring fees owed
to Related Credit Properties L.P., a General Partner, amounting to approximately
$82,000 and $90,000  were  accrued and unpaid as of December  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
$419,437 and  $435,229  and  $1,313,094  and  $1,354,736  for the three and nine
months ended December 15, 2004 and 2003,  respectively.  Of these fees, $254,007
and $259,388 and $763,046 and $790,492  were incurred to affiliates of the local
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 September 24, 2004,  the property and the related  assets and  liabilities of
Autumn Park Associates,  L.P. ("Autumn Park") were sold to an unaffiliated third
party for  $1,050,000.  This amount  consisted  of $900,000  paid in cash at the
closing  and  $150,000  pursuant  to one  promissory  note.  The note  compounds
interest at 10% and is due on October 30, 2005.  The sale  resulted in a gain of
approximately $1,992,000.

On August 27, 2004, the property and the related assets and  liabilities of 2108
Bolton Drive  Associated,  L.P.  ("Bolton") were sold to an  unaffiliated  third

                                       13
<PAGE>

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


party for $8,891,000, resulting in a gain of approximately $1,259,000.

On July 30,  2004,  the  property  and the  related  assets and  liabilities  of
Tanglewood  Apartments,  L.P.  ("Tanglewood") were sold to an unaffiliated third
party for $3,425,000, resulting in a gain of approximately $1,167,000.

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  $2,559,000.  The
sale resulted in the liquidation of Walnut.

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

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

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

On January 23,  2003,  the property and the related  assets and  liabilities  of
Ludlam Gardens  Apartments,  LTD.  ("Ludlam") were sold to an unaffiliated third

                                       14
<PAGE>

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


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 December 15, 2004 had a partners' deficit of approximately
$1,592,000. 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.

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


Note 5 - Subsequent Events

On January 5, 2005, the property and the related assets and  liabilities of Lund
Hill Associates,  L.P. ("Lund Hill"),  were sold to an unaffiliated  third party
for a  purchase  price  of  $6,500,000,  resulting  in a gain  of  approximately
$1,097,000,  which  will  be  recognized  in  the  financial  statements  of the
Partnership's Form 10-K during the quarter ended March 15, 2005.

On December 29, 2004, the Partnership  entered into an agreement for the sale of
its  Limited   Partnership   Interest  in  Lancaster  Towers  Associates,   Ltd.
("Lancaster")  to an affiliate of the local general partner for a purchase price
of $450,000. The sales documents have been executed and the funds are being held

                                       15
<PAGE>

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


in escrow  waiting for approval of the sale from the  Department  of Housing and
Urban Development  ("HUD"). No assurances can be given that HUD will approve the
sale.

Note 6 - Discontinued Operations:

The following table summarizes the financial  results of the Local  Partnerships
that are  classified as  discontinued  operations.  For the three and nine month
period ended December 15, 2004, Autumn Park, Bolton,  Tanglewood and Walnut were
classified  as  discontinued   operations  on  the  Consolidated   Statement  of
Operations.  For the three and nine month period ended December 15, 2003, Autumn
Park,  Bolton,  Tanglewood,  Walnut,  Silver  Blue,  Bryden  Road  (one  of  the
properties  owned by Shiloh),  Ludlam and Dixie were  classified as discontinued
operations on the Consolidated Statement of Operations.
<TABLE>
<CAPTION>
                                 ==========================    =========================
                                     Three Months Ended            Nine Months Ended
                                         December 15,                  December 15,
                                 --------------------------    -------------------------
                                    2004            2003          2004           2003
                                 --------------------------    -------------------------
<S>                              <C>            <C>            <C>           <C>
Revenues                         $   878,439    $ 1,191,498    $ 2,812,231   $ 3,830,314
Gain on sale of
  properties (Note 3)              4,451,845              0      6,976,752     1,808,199
                                 -----------    -----------    -----------   -----------
Total revenue                      5,330,284      1,191,498      9,788,983     5,638,513
                                 -----------    -----------    -----------   -----------

Total expenses                     1,146,154      1,685,740      3,629,041     5,650,162
                                 -----------    -----------    -----------   -----------

Income (loss) before
  minority interest                4,184,130       (494,242)     6,159,942       (11,649)
Minority interest in
  (income) loss of
  subsidiaries from
  discontinued
  operations                         (35,021)         3,746        962,143       464,716
                                 -----------    -----------    -----------   -----------
Total net income
  (loss) from
  discontinued
  operations (in-
  cluding gain on
  sale of properties)            $ 4,149,109    $  (490,496)   $ 7,122,085   $   453,067
                                 ===========    ===========    ===========   ===========
</TABLE>

                                       16
<PAGE>

                          LIBERTY TAX CREDIT PLUS L.P.
                                AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                December 15, 2004
                                   (Unaudited)
<TABLE>
<CAPTION>
                                 ==========================    =========================
                                     Three Months Ended            Nine Months Ended
                                         December 15,                  December 15,
                                 --------------------------    -------------------------
                                    2004            2003          2004           2003
                                 --------------------------    -------------------------
<S>                              <C>            <C>            <C>           <C>
Income (loss) -
  limited partners
  from discontinued
  operations (includ-
  ing gain on sale of
  properties)                    $ 4,107,617    $  (485,591)   $ 7,050,864   $   448,536
                                 ===========    ===========    ===========   ===========

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

Income (loss)
  discontinued
  operations (includ-
  ing gain on sale
  of properties) per
  BAC                            $    256.93    $    (30.37)   $     441.0   $     28.06
                                 ===========    ===========    ===========   ===========
</TABLE>

                                       17
<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
December 15, 2004,  the  properties  and the related  assets and  liabilities of
seven  Local  Partnerships  and the  limited  partnership  interest in one Local
Partnership  were sold. For a discussion of the sale of the Local  Partnerships,
see Note 3 to the financial statements.

The Partnership's  primary source of funds is cash distributions from operations
of the Local  Partnerships in which the  Partnership  has invested.  Such funds,
although minimal,  are available to meet obligations of the Partnership.  During
the nine months ended December 15, 2004 and 2003, such distributions amounted to
approximately $1,338,000 and $115,000,  respectively.  In addition,  partnership
management  fees  and  expense  reimbursements  owed  to  the  General  Partners
amounting to approximately  $8,669,000 and $8,001,000 were accrued and unpaid as
of  December  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 nine months ended  December 15, 2004,  cash and cash  equivalents of the
Partnership and its  consolidated  Local  Partnerships  increased  approximately
$423,000. This increase is attributable to cash provided by operating activities
($818,000),  proceeds from sales of properties ($1,225,000),  a decrease in cash
held in escrow relating to investing  activities  ($288,000),  a net increase in
due to local general  partners and affiliates  relating to financing  activities
($733,000)  and an  increase  in  capitalization  of  consolidated  subsidiaries
attributable  to minority  interest  ($288,000)  which exceeded  improvements to
property and equipment  ($1,100,000)  and principal  repayment of mortgage notes
($1,828,000).  Included in  adjustments  to  reconcile  the net loss to net cash
provided  by  operating   activities  are   depreciation   and  amortization  of
approximately  ($5,510,000) and income from discontinued  operations  (including
gain on sale of properties) of approximately ($7,122,000).

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.

                                       18
<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

                                       19
<PAGE>

depreciated.  For the nine months ended December 15, 2004, the  Partnership  has
not recorded any property and equipment as held for sale.

Discontinued Operations
-----------------------

In accordance with FASB 144, 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 consolidated 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.

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

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

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

The results of operations of the Partnership, as well as the Local Partnerships,
remained fairly  consistent  during the three and nine months ended December 15,
2004 and  2003,  excluding  gain on sale of  properties,  other  income,  taxes,
depreciation and amortization and capital events with respect to Ludlam,  Dixie,
Silver Blue, Bryden Road, Walnut, Tanglewood, Bolton and Autumn Park, which sold
their  respective  properties and the related assets and liabilities  (the "Sold
Assets"). The results of operations for the three and nine months ended December
15,  2004 and 2003  consisted  primarily  of the  results  of the  Partnership's
investment in the consolidated Local Partnerships.

Rental income  decreased  approximately  3% and 5% for the three and nine months
ended  December  15,  2004 as  compared  to the  corresponding  periods in 2003.
Excluding the Sold Assets,  rental income  remained  fairly  consistent  for the
three months ended December 15, 2004 and 2003 and decreased approximately 1% for
the nine  months  ended  December  15, 2004 and 2003,  primarily  due to a grant
received by one Local  Partnership  in 2003 and increased  vacancy and recurring
concessions at a second Local Partnership in 2004 (see Note 4).

                                       20
<PAGE>

Other  income  decreased  approximately  $101,000 and $205,000 for the three and
nine months ended December 15, 2004 as compared to the corresponding  periods in
2003. Excluding the Sold Assets, other income decreased  approximately  $100,000
and  $45,000,  primarily  due to a  decrease  in  subsidy  income  at one  Local
Partnership.

Taxes  decreased  approximately  $134,000  and  $157,000  for the three and nine
months ended December 15, 2004 as compared to the corresponding periods in 2003.
Excluding the Sold Assets,  taxes decreased  approximately  $74,000 and $50,000,
primarily  due to an  overaccrual  of  taxes  in the  prior  year  at one  Local
Partnership.

Depreciation and amortization  increased  approximately $331,000 and $34,000 for
the  three  and  nine  months  ended  December  15,  2004,  as  compared  to the
corresponding  periods in 2003.  Excluding  the Sold  Assets,  depreciation  and
amortization increased approximately $260,000 and $614,000, primarily due to the
resumption of depreciation  expense at one Local Partnership that was classified
as an asset held for sale in 2004, and therefore not depreciated in 2003.

Repairs and maintenance  decreased  approximately  $236,000 for the three months
ended  December  15,  2004 as  compared  to the  corresponding  period  in 2003,
primarily due to decreases relating to the Sold Assets.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk

The Partnership does not have any market risk sensitive instruments.

Item 4.  Controls and Procedures

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

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

                                       21
<PAGE>

                           PART II. OTHER INFORMATION

Item 1.   Legal Proceedings - None

Item 2.   Unregistered Sales of Equity 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

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

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

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

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

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

          (10C) Form of Local Partnership Agreement**

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

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

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

                                       22
<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: January 28, 2005
                                     By: /s/ Alan P. Hirmes
                                         ------------------
                                         Alan P. Hirmes,
                                         President and Chief Executive
                                         Officer
                                         (Principal Executive and Financial
                                         Officer)

Date: January 28, 2005
                                     By: /s/ Glenn F. Hopps
                                         ------------------
                                         Glenn F. Hopps,
                                         Treasurer
                                         (Principal Accounting Officer)

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

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

                                     By: Related Credit Properties Inc.,
                                         its General Partner

Date: January 28, 2005
                                         By: /s/ Alan P. Hirmes
                                             ------------------
                                             Alan P. Hirmes,
                                             President and Chief
                                             Executive Officer
                                             (Principal Executive and
                                             Financial Officer)

Date: January 28, 2005
                                         By: /s/ Glenn F. Hopps
                                             ------------------
                                             Glenn F. Hopps,
                                             Treasurer
                                             (Principal Accounting
                                             Officer)


<PAGE>

                                                                    Exhibit 31.1


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

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

     1.  I have  reviewed  this  quarterly  report on Form  10-Q for the  period
         ending December 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  December 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
                                         January 28, 2005


<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  December  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
     January 28, 2005