----

----

| þ | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     |
|--------|---------------------------------------------------------------|
|   | SECURITIES      EXCHANGE ACT OF 1934                          |
|   |                                                          |
|   | For      the fiscal year ended December 31,      2007         |
|   |                                                          |
|   | OR                                                            |
|   |                                                          |
| o      | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|   | SECURITIES      EXCHANGE ACT OF 1934                          |

| Delaware                                                            |   | 13-4101114                                |
|---------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of incorporation or organization) |   | (I.R.S.      Employer Identification No.) |
|                                                                |   |                                      |
| 100      Fifth Avenue, 4th      FloorNew      York, New York        |   |  10011                               |
| (Address      of principal executive offices)                       |   | (Zip      Code)                           |

----

----

Item 15. Exhibits, Financial Statement Schedules

| (a)    | 1.      Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | See      index to financial statements included as Item 8 to the Original      Filing.                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 2.      Financial Statement Schedules                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Financial      Statement Schedule II – Valuation and Qualifying Accounts as filed with      the Original Filing.  Schedules not listed above have been      omitted because they are not applicable or the information required to be      set forth therein is included in the financial statements or notes      thereto.                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3.      Exhibits:                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 3.1    Amended and      Restated Agreement of Limited Partnership of Registrant (Incorporated by      reference to Exhibit 4.1 to Registrant’s Post-Effective Amendment No. 6 to      Form S-1 Registration Statement No. 333-54001 dated May 19,      2000).                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 4.1  Certificate of      Limited Partnership of Registrant (Incorporated by reference to Exhibit      4.3 to Registrant’s Post-Effective Amendment No. 6 Form S-1 Registration      Statement No. 333-54001 dated May 19, 2000).                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 10.1   Commercial      Loan Agreement, by and between California Bank & Trust, ICON Income      Fund Eight B L.P., ICON Income Fund Nine, LLC, ICON Income Fund Ten,      LLC and ICON Leasing Fund Eleven, LLC, dated August 31, 2005 (Incorporated      by reference to Exhibit 10.1 to Registrant’s Current Report on Form 8-K      dated August 31, 2005).                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 10.2   Loan      Modification Agreement, by and between California Bank & Trust and      ICON Income Fund Eight B L.P., ICON Income Fund Nine, LLC, ICON      Income Fund Ten, LLC and ICON Leasing Fund Eleven, LLC, dated December 26,      2006 (Incorporated by reference to Exhibit 10.1 to Registrant’s Current      Report on Form 8-K dated December 29, 2006).                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 10.3   Loan      Modification Agreement dated as of May 1, 2008 between California Bank      & Trust and ICON Income Fund Eight B L.P., ICON Income Fund Nine,      LLC, ICON Income Fund Ten, LLC, ICON Leasing Fund Eleven, LLC and ICON      Leasing Fund Twelve, LLC (Incorporated by reference to Exhibit 10.4 to      Registrant’s Quarterly Report on Form 10-Q dated May 15, 2008). |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 31.1        Rule 13a-14(a)/15d-14(a). Certification of Co-Chief Executive      Officer.                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 31.2        Rule      13a-14(a)/15d-14(a). Certification of Co-Chief Executive      Officer.                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 31.3        Rule      13a-14(a)/15d-14(a). Certification of Chief Financial    Officer.                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 32.1        Certification      of Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 32.2        Certification      of Co-Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | 32.3        Certification      of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (b)    | Consolidated      Financial Statements of ICON Aircraft 126LLC                                                                                                                                                                                                                                                                                                                                                                 |

----

Table of Contents

| Reports of Independent Registered Public Accounting      Firms  | 1      |
|-----------------------------------------------------------------|--------|
|                                                            |   |
| Consolidated Balance Sheets                                     | 3      |
|                                                            |   |
| Consolidated Statements ofOperations                            | 4      |
|                                                            |   |
| Consolidated Statement of Changes in Members’      Equity | 5      |
|                                                            |   |
| Consolidated Statements of Cash Flows                           | 6      |
|                                                            |   |
| Notes to Consolidated Financial Statements            | 7      |

----

Table of Contents

ACCOUNTING

----

Table of Contents

----

Table of Contents

| ICON Aircraft 126 LLC                                                                                                      |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|
| (A      Delaware Limited Liability Company)                                                                                |   |
| Consolidated      Balance Sheets                                                                                           |   |
|                                                                                                                       |   |
|                                                                                                                       |   |
| Assets                                                                                                                     |   |
|                                                                                                                       |   | December 31, |   |
|                                                                                                                       |   | 2007 |   |   | 2006 |   |
|                                                                                                                       |   |   |   |   |   |   |
|  Leased      equipment at cost, net (less accumulated depreciation of $24,556,920 and      $20,556,920, respectively) |   | $ | 52,966,664 |   |   | $ | 56,966,664 |   |
|  Other      non-current assets, net                                                                                   |   |   | 354,159 |   |   |   | 345,579 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
|  Total      Assets                                                                                                    |   | $ | 53,320,823 |   |   | $ | 57,312,243 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
| Liabilities      and Members' Equity                                                                                       |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
|  Current      liabilities                                                                                             |   |   |   |   |   |   |   |   |
|  Current      portion of non-recourse long-term debt                                                                  |   | $ | 3,810,027 |   |   | $ | 3,559,374 |   |
|  Deferred      rental income                                                                                          |   |   | 300,000 |   |   |   | 128,571 |   |
|  Accrued      interest                                                                                                |   |   | 233,783 |   |   |   | 251,000 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
|  Total      current liabilities                                                                                       |   |   | 4,343,810 |   |   |   | 3,938,945 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
|  Non-current      liabilities                                                                                         |   |   |   |   |   |   |   |   |
|  Non-recourse      long-term debt, net of current portion                                                             |   |   | 42,150,006 |   |   |   | 45,992,323 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
|  Total      Liabilities                                                                                               |   |   | 46,493,816 |   |   |   | 49,931,268 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
|  Members'      Equity                                                                                                 |   |   | 6,827,007 |   |   |   | 7,380,975 |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |
|  Total      Liabilities and Members' Equity                                                                           |   | $ | 53,320,823 |   |   | $ | 57,312,243 |   |

----

Table of Contents

| ICON Aircraft 126 LLC                                   |   |
|---------------------------------------------------------|--------|
| (A      Delaware Limited Liability Company)             |   |
| Consolidated      Statements of Operations              |   |
|                                                    |   |
|                                                    |   |
|                                                    |   | Years Ended December 31, |   |
|                                                    |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|  Revenue:                                          |   |   |   |   |   |   |   |   |   |
|  Rental      income                                |   | $ | 6,368,571 |   |   | $ | 6,753,785 |   |   | $ | 8,190,414 |   |
|  Interest      and other income                    |   |   | 5,615 |   |   |   | 62,883 |   |   |   | 40,920 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Total      revenue                                |   |   | 6,374,186 |   |   |   | 6,816,668 |   |   |   | 8,231,334 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Expenses:                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  General      and administrative                   |   |   | 22,829 |   |   |   | 50,002 |   |   |   | - |   |
|  Interest                                          |   |   | 2,924,382 |   |   |   | 3,089,780 |   |   |   | 3,053,805 |   |
|  Depreciation      and amortization                |   |   | 4,003,772 |   |   |   | 4,148,392 |   |   |   | 4,381,687 |   |
|  Aircraft      maintenance                         |   |   | - |   |   |   | 1,152,698 |   |   |   | - |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|       Total      expenses |   |   | 6,950,983 |   |   |   | 8,440,872 |   |   |   | 7,435,492 |   |
|                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      (loss) income                            |   | $ | (576,797 | ) |   | $ | (1,624,204 | ) |   | $ | 795,842 |   |

----

Table of Contents

| ICON Aircraft 126 LLC                                     |   |
|-----------------------------------------------------------|--------|
| (A      Delaware Limited Liability Company)               |   |
| Consolidated      Statement of Changes in Members' Equity |   |
|                                                      |   |
|                                                      |   |
|                                                      |   |
|                                                      |   |
|                                                      |   | Members' |   |
|                                                      |   | Equity |   |
|  Balance,      January 1, 2005                       |   | $ | 8,027,316 |   |
|                                                      |   |   |   |   |
|  Net      income                                     |   |   | 795,842 |   |
|                                                      |   |   |   |   |
|  Balance,      December 31, 2005                     |   |   | 8,823,158 |   |
|                                                      |   |   |   |   |
|  Net      loss                                       |   |   | (1,624,204 | ) |
|  Investment      from members                        |   |   | 182,021 |   |
|                                                      |   |   |   |   |
|  Balance,      December 31, 2006                     |   |   | 7,380,975 |   |
|                                                      |   |   |   |   |
|  Net      loss                                       |   |   | (576,797 | ) |
|  Investment      from members                        |   |   | 22,829 |   |
|                                                      |   |   |   |   |
|  Balance,      December 31, 2007                     |   | $ | 6,827,007 |   |

----

Table of Contents

| ICON Aircraft 126 LLC                                                        |   |
|------------------------------------------------------------------------------|--------|
| (A      Delaware Limited Liability Company)                                  |   |
| Consolidated      Statements of Cash Flows                                   |   |
|                                                                         |   |
|                                                                         |   |
|                                                                         |   | Years Ended December 31, |   |
|                                                                         |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|  Cash      flows from operating activities:                             |   |   |   |   |   |   |   |   |   |
|  Net      (loss) income                                                 |   | $ | (576,797 | ) |   | $ | (1,624,204 | ) |   | $ | 795,842 |   |
|  Adjustments      to reconcile net (loss) income to net cash            |   |   |   |   |   |   |   |   |   |   |   |   |
|  used      in operating activities:                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|  Rental      income paid directly to lenders by lessees                 |   |   | (6,540,000 | ) |   |   | (6,753,785 | ) |   |   | (8,190,414 | ) |
|  Interest      income on maintenance reserve                            |   |   | (5,615 | ) |   |   | (55,784 | ) |   |   | (40,920 | ) |
|  Depreciation      and amortization                                     |   |   | 4,003,772 |   |   |   | 4,148,392 |   |   |   | 4,381,687 |   |
|  Interest      expense on non-recourse financing paid                   |   |   |   |   |   |   |   |   |   |   |   |   |
|  directly      to lenders by lessees                                    |   |   | 2,948,336 |   |   |   | 3,060,190 |   |   |   | 3,085,157 |   |
|  Change      in operating assets and other liabilities:                 |   |   |   |   |   |   |   |   |   |   |   |   |
|  Other      non-current assets                                          |   |   | (6,737 | ) |   |   | 885,009 |   |   |   | - |   |
|  Deferred      rental income                                            |   |   | 171,429 |   |   |   | 128,571 |   |   |   | - |   |
|  Accrued      interest                                                  |   |   | (17,217 | ) |   |   | 29,590 |   |   |   | (31,352 | ) |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      cash used in operating activities                             |   |   | (22,829 | ) |   |   | (182,021 | ) |   |   | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash      flows from financing activities:                             |   |   |   |   |   |   |   |   |   |   |   |   |
|  Contributions      received                                            |   |   | 22,829 |   |   |   | 182,021 |   |   |   | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net      increase in cash                                              |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash,      beginning of the year                                       |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  Cash,      end of the year                                             |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash investing and financing activities: |   |   |   |   |   |   |   |   |   |
|  Principal      and interest paid directly to lenders by lessees        |   | $ | 6,540,000 |   |   | $ | 6,753,785 |   |   | $ | 7,798,560 |   |
|  Other      assets used to pay down non-recourse debt                   |   | $ | - |   |   | $ | 582,509 |   |   | $ | - |   |

----

Table of Contents

ICON Aircraft 126 LLC

| (1) | Organization |
|-----|--------------|

| (2) | Summary      of Significant Accounting Policies |
|-----|-------------------------------------------------|

----

Table of Contents

| (2) | Summary      of Significant Accounting Policies -continued |
|-----|------------------------------------------------------------|

----

Table of Contents

| (2) | Summary      of Significant Accounting Policies -continued |
|-----|------------------------------------------------------------|

| (3) | Leased      Equipment at Cost |
|-----|-------------------------------|

----

Table of Contents

| (3) | Leased      Equipment at Cost - continued |
|-----|-------------------------------------------|

| Years      Ending  |   |   |      |
|--------------------|--------|--------|-----------|
|  December 31, |   |   |      |
|  2008         |   | $      | 6,540,000 |   |
|  2009         |   | $      | 6,540,000 |   |
|  2010         |   | $      | 5,940,000 |   |
|  2011         |   | $      | 2,970,000 |   |

| (4) | Non-Recourse      Long-Term Debt |
|-----|----------------------------------|

| Years      Ending  |   |   |       |
|--------------------|--------|--------|------------|
|  December 31, |   |   |       |
|  2008         |   | $      | 3,810,027  |   |
|  2009         |   |   | 4,044,096  |   |
|  2010         |   |   | 3,684,449  |   |
|  2011         |   |   | 34,421,461 |   |
|               |   | $      | 45,960,033 |   |

----

Table of Contents

| (5) | Residual      Sharing Agreement |
|-----|---------------------------------|

| (6) | Fair      Value of Financial Instruments |
|-----|------------------------------------------|

| (7) | Transactions      with Related Parties |
|-----|----------------------------------------|

| (8) | Concentrations |
|-----|----------------|

----

Table of Contents

| /s/      Mark Gatto                                                                   |
|---------------------------------------------------------------------------------------|
| Mark      Gatto                                                                       |
| Co-Chief      Executive Officer and Co-President(Co-Principal      Executive Officer) |

| /s/      Michael A. Reisner                                                           |
|---------------------------------------------------------------------------------------|
| Michael      A. Reisner                                                               |
| Co-Chief      Executive Officer and Co-President(Co-Principal      Executive Officer) |

| /s/      Anthony Branca                                        |
|----------------------------------------------------------------|
| Anthony      Branca                                            |
| Chief      Financial Officer(Principal      Financial Officer) |

| /s/ Mark Gatto                                                                                  |
|-------------------------------------------------------------------------------------------------|
| Mark      Gatto                                                                                 |
| Co-Chief      Executive Officer, Co-President and Director(Co-Principal      Executive Officer) |

| /s/      Michael A. Reisner                                                                          |
|------------------------------------------------------------------------------------------------------|
| Michael      A. Reisner                                                                              |
| Co-Chief      Executive Officer, Co-President and Director(Co-Principal      Executive Officer) |

| /s/      Thomas W. Martin |
|---------------------------|
| Thomas      W. Martin     |
| Chairman                  |

| 12 |
|----|

----