FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

      For the quarterly period ended June 30, 2001

                                             or

( )   TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

      For the transition period from _______ to _______
Commission file number        0-21718

BOSTON CAPITAL TAX CREDIT FUND III L.P.
(Exact name of registrant as specified in its charter)

Delaware	52-1749505
(State or other jurisdiction	(I.R.S. Employer
of incorporation or organization)	Identification No.)

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

Registrants telephone number, including area code (617)624-8900

(Former name, former address and former fiscal year, if changed since last report)

      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 preceeding 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 _

BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2001

TABLE OF CONTENTS

FOR THE QUARTER ENDED JUNE 30, 2001 *

Balance_Sheets*

Balance_Sheets_Series_15*

Balance_Sheets_Series_16*

Balance_Sheets_Series_17*

Balance_Sheets_Series_18*

Balance_Sheets_Series_19*

Statements_of_Operations*

THree Months Ended june 30*

Statements_of_Operations_Series_15*

Statements_of_Operations_Series_16*

Statements_of_Operations_Series_17*

Statements_of_Operations_Series_18*

Statements_of_Operations_Series_19*

Changes_in_Partners_Capital 16

Changes_in_Partners_Capital_Series_15 17

Changes_in_Partners_Capital_Series_16 17

Changes_in_Partners_Capital_Series_17 18

Changes_in_Partners_Capital_Series_18 18

Changes_in_Partners_Capital_Series_19 19

Statements_of_Cash_Flows 20

THREE MONTHS Ended JUNE 30

Statements_of_Cash_Flows_Series_15 22

Statements_of_Cash_Flows_Series_16 24

Statements_of_Cash_Flows_Series_17 26

Statements_of_Cash_Flows_Series_18 28

Statements_of_Cash_Flows_Series_19 30

Notes_to_Financial_Statements*

Note_A_Organization*

Note_B_Accounting*

Investment*

Cost

Note_C_Related_Party_Transactions 34

Note_D_Investments 35

Combined_Statements_of_Operations 37

Combined_Statements_Series_15 37

Combined_Statements_Series_16 38

Combined_Statements_Series_17 39

Combined_Statements_Series_18 40

Combined_Statements_Series_19*

Liquidity*2

Capital_Resources*

Results_of_Operations 44

Part_II_Other_Information 49

SIGNATURES 50

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

	June 30, 2001 (Unaudited)	March 31, 2001 (Audited)
ASSETS
INVESTMENTS IN OPERATING    PARTNERSHIPS(Note D)	$ 82,909,804	$ 85,319,858
OTHER ASSETS
Cash and cash equivalents	1,872,048	1,122,380
Investments	790,757	1,465,643
Notes receivable	1,309,982	1,309,982
Deferred acquisition costs,     net of accumulated amortization   (Note B)	1,457,229	1,474,454
Other assets	3,173,178	3,032,043
	$ 91,512,998	$ 93,724,360
LIABILITIES
Accounts payable & accrued expenses  (Note C)	$      4,553	$      4,553
Accounts payable affiliates	15,818,210	15,040,788
Capital contributions payable	1,384,034	1,384,034
	17,206,797	16,429,375
PARTNERS CAPITAL
Limited Partners        Units of limited partnership    interest, $10 stated value per BAC;     22,000,000 authorized BACs;     21,996,102 issued and outstanding,     as of March 31, 2001	75,452,802	78,411,698
General Partner	(1,146,601)	(1,116,713)
	74,306,201	77,294,985
	$ 91,512,998	$ 93,724,360

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 15

	June 30, 2001 (Unaudited)	March 31, 2001 (Audited)
ASSETS
INVESTMENTS IN OPERATING    PARTNERSHIPS(Note D)	$10,306,888	$10,617,785
OTHER ASSETS
Cash and cash equivalents	235,356	229,627
Investments	286,218	286,218
Notes receivable	-	-
Deferred acquisition costs,     net of accumulated amortization   (Note B)	223,372	226,000
Other assets	803,720	799,327
	$11,855,554	$12,158,957
LIABILITIES
Accounts payable & accrued expenses    (Note C)	$     1,145	$     1,145
Accounts payable affiliates	4,355,480	4,218,465
Capital contributions payable	16,206	16,206
	4,372,831	4,235,816
PARTNERS CAPITAL
Limited Partners        Units of limited partnership    interest, $10 stated value per    BAC; 22,000,000 authorized BACs;    3,870,500 issued and outstanding,    as of March 31, 2001	7,740,567	8,176,581
General Partner	(257,844)	(253,440)
	7,482,723	7,923,141
	$11,855,554	$12,158,957

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 16

	June 30, 2001 (Unaudited)	March 31, 2001 (Audited)
ASSETS
INVESTMENTS IN OPERATING    PARTNERSHIPS (Note D)	$19,882,076	$20,493,977
OTHER ASSETS
Cash and cash equivalents	680,955	113,123
Investments	-	535,809
Notes receivable	-	-
Deferred acquisition costs,     net of accumulated amortization    (Note B)	358,108	362,321
Other assets	136,943	138,036
	$21,058,082	$21,643,266
LIABILITIES
Accounts payable & accrued expenses    (Note C)	$         -	$         -
Accounts payable affiliates	3,584,021	3,411,025
Capital contributions payable	138,506	138,506
	3,722,527	3,549,531
PARTNERS CAPITAL
Limited Partners        Units of limited partnership        Interest, $10 stated value per    BAC; 22,000,000 authorized BACs;    5,429,402 issued and outstanding,    as of March 31, 2001	17,628,809	18,379,407
General Partner	(293,254)	(285,672)
	17,335,555	18,093,735
	$21,058,082	$21,643,266

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 17

	June 30, 2001 (Unaudited)	March 31, 2001 (Audited)
ASSETS
INVESTMENTS IN OPERATING     PARTNERSHIPS (Note D)	$19,002,645	$19,483,775
OTHER ASSETS
Cash and cash equivalents	375,669	397,129
Investments	-	-
Notes receivable	1,309,982	1,309,982
Deferred acquisition costs,     net of accumulated amortization   (Note B)	322,660	326,548
Other assets	2,113,841	1,985,681
	$23,124,797	$23,503,115
LIABILITIES
Accounts payable & accrued expenses    (Note C)	$         -	$         -
Accounts payable affiliates	4,902,228	4,633,143
Capital contributions payable	1,186,768	1,186,768
	6,088,996	5,819,911
PARTNERS CAPITAL
Limited Partners        Units of limited partnership        Interest, $10 stated value per    BAC; 22,000,000 authorized BACs;    5,000,000 issued and outstanding,    as of March 31, 2001	17,295,123	17,936,052
General Partner	(259,322)	(252,848)
	17,035,801	17,683,204
	$23,124,797	$23,503,115

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 18

	June 30, 2001 (Unaudited)	March 31, 2001 (Audited)
ASSETS
INVESTMENTS IN OPERATING       PARTNERSHIPS (NOTE D)	$13,980,255	$14,578,072
OTHER ASSETS
Cash and cash equivalents	241,687	238,396
Investments	107,824	107,824
Notes receivable	-	-
Deferred acquisition costs,      Net of accumulated amortization   (Note B)	243,476	246,330
Other assets	94,756	93,007
	$14,667,998	$15,263,629
LIABILITIES
Accounts payable & accrued expenses    (Note C)	$         -	$         -
Accounts payable affiliates	1,989,372	1,893,885
Capital contributions payable	18,554	18,554
	2,007,926	1,912,439
PARTNERS CAPITAL
Limited Partners        Units of limited partnership        Interest, $10 stated value per    BAC; 22,000,000 authorized BACs;    3,616,200 issued and outstanding,    as of March 31, 2001	12,843,699	13,527,906
General Partner	(183,627)	(176,716)
	12,660,072	13,351,190
	$14,667,998	$15,263,629

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 19

	June 30, 2001 (Unaudited)	March 31, 2001 (Audited)
ASSETS
INVESTMENTS IN OPERATING    PARTNERSHIPS (NOTE D)	$19,737,940	$20,146,249
OTHER ASSETS
Cash and cash equivalents	338,381	144,105
Investments	396,715	535,792
Notes receivable	-	-
Deferred acquisition costs,     net of accumulated amortization    (Note B)	309,613	313,255
Other assets	23,918	15,992
	$20,806,567	$21,155,393
LIABILITIES
Accounts payable & accrued expenses    (Note C)	$     3,408	$     3,408
Accounts payable affiliates	987,109	884,270
Capital contributions payable	24,000	24,000
	1,014,517	911,678
PARTNERS CAPITAL
Limited Partners        Units of limited partnership        Interest, $10 stated value per    BAC; 22,000,000 authorized BACs;    4,080,000 issued and outstanding,    as of March 31, 2001	19,944,604	20,391,752
General Partner	(152,554)	(148,037)
	19,792,050	20,243,715
	$20,806,567	$21,155,393

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

	2001	2000
Income
Interest income	$     28,524	$     28,179
Other income	16	998
	28,540	29,177
Share of loss from Operating    Partnerships(Note D)	(2,356,628)	(2,489,704)
Expenses
Professional fees	73,407	13,372
Fund management fee (Note C)	548,490	547,815
Amortization	17,225	17,225
General and administrative expenses	21,574	44,858
	660,696	623,270
NET LOSS	$(2,988,784)	$(3,083,797)
Net loss allocated to limited partners	$(2,958,896)	$(3,052,958)
Net loss allocated to general partner	$   (29,888)	$   (30,839)
Net loss per BAC	$      (.68)	$      (.69)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 15

	2001	2000
Income
Interest income	$     5,727	$     4,294
Other income	16	9
	5,743	4,303
Share of loss from Operating    Partnerships(Note D)	(310,584)	(455,506)
Expenses
Professional fees	9,690	3,230
Fund management fee	119,368	110,891
Amortization	2,628	2,628
General and administrative expenses	3,891	8,214
	135,577	124,963
NET LOSS	$ (440,418)	$ (576,166)
Net loss allocated to limited partners	$ (436,014)	$ (570,404)
Net loss allocated to general partner	$   (4,404)	$   (5,762)
Net loss per BAC	$     (.11)	$     (.15)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 16

	2001	2000
Income
Interest income	$     8,605	$    10,425
Other income	-	436
	8,605	10,861
Share of loss from Operating    Partnerships(Note D)	(608,222)	(819,165)
Expenses
Professional fees	12,922	4,283
Fund management fee	136,198	152,430
Amortization	4,213	4,213
General and administrative expenses	5,230	11,227
	158,563	172,153
NET LOSS	$ (758,180)	$ (980,457)
Net loss allocated to limited partners	$ (750,598)	$ (970,652)
Net loss allocated to general partner	$   (7,582)	$   (9,805)
Net loss per BAC	$     (.14)	$     (.18)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 17

	2001	2000
Income
Interest income	$     2,176	$     2,998
Other income	-	553
	2,176	3,551
Share of loss from Operating    Partnerships(Note D)	(481,118)	(473,016)
Expenses
Professional fees	39,993	2,446
Fund management fee	119,219	112,419
Amortization	3,888	3,888
General and administrative expenses	5,361	10,574
	168,461	129,327
NET LOSS	$ (647,403)	$ (598,792)
Net loss allocated to limited partners	$ (640,929)	$ (592,804)
Net loss allocated to general partner	$   (6,474)	$   (5,988)
Net loss per BAC	$     (.13)	$     (.12)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 18

	2001	2000
Income
Interest Income	$     2,879	$     3,310
Other income	-	-
	2,879	3,310
Share of loss from Operating    Partnerships(Note D)	(594,861)	(407,350)
Expenses
Professional fees	6,309	1,916
Fund management fee	86,634	72,916
Amortization	2,854	2,854
General and administrative expenses	3,339	6,982
	99,136	84,668
NET LOSS	$ (691,118)	$ (488,708)
Net loss allocated to limited partners	$ (684,207)	$ (483,821)
Net loss allocated to general partner	$   (6,911)	$   (4,887)
Net loss per BAC	$     (.19)	$     (.14)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 19

	2001	2000
Income
Interest income	$     9,137	$     7,152
Other income	-	-
	9,137	7,152
Share of loss from Operating    Partnerships(Note D)	(361,843)	(334,667)
Expenses
Professional fees	4,493	1,497
Fund management fee	87,071	99,159
Amortization	3,642	3,642
General and administrative expenses	3,753	7,861
	98,959	112,159
NET LOSS	$ (451,665)	$ (439,674)
Net loss allocated to limited partners	$ (447,148)	$ (435,277)
Net loss allocated to general partner	$   (4,517)	$   (4,397)
Net loss per BAC	$     (.11)	$     (.11)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Three Months Ended June 30, 2001
(Unaudited)

	Assignees	General Partner	Total
Partners' capital   (deficit)   April 1, 2001	$ 78,411,698	$(1,116,713)	$ 77,294,985
Net income (loss)	(2,958,896)	(29,888)	(2,988,784)
Partners' capital   (deficit),   June 30, 2001	$ 75,452,802	$(1,146,601)	$ 74,306,201

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Three Months Ended June 30, 2001
(Unaudited)

	Assignees	General Partner	Total
Series 15
Partners' capital   (deficit)   April 1, 2001	$  8,176,581	$  (253,440)	$  7,923,141
Net income (loss)	(436,014)	(4,404)	(440,418)
Partners' capital   (deficit)   June 30, 2001	$  7,740,567	$  (257,844)	$  7,482,723
Series 16
Partners' capital   (deficit)   April 1, 2001	$ 18,379,407	$  (285,672)	$ 18,093,735
Net income (loss)	(750,598)	(7,582)	(758,180)
Partners' capital   (deficit)   June 30, 2001	$ 17,628,809	$  (293,254)	$ 17,335,555

The accompanying notes are an integral part of these statements.

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Three Months Ended June 30, 2001
(Unaudited)

	Assignees	General Partner	Total
Series 17
Partners' capital   (deficit)   April 1, 2001	$ 17,936,052	$  (252,848)	$ 17,683,204
Net income (loss)	(640,929)	(6,474)	(647,403)
Partners' capital   (deficit)   June 30, 2001	$ 17,295,123	$  (259,322)	$ 17,035,801
Series 18
Partners' capital   (deficit)   April 1, 2001	$ 13,527,906	$  (176,716)	$ 13,351,190
Net income (loss)	(684,207)	(6,911)	(691,118)
Partners' capital   (deficit),   June 30, 2001	$ 12,843,699	$  (183,627)	$ 12,660,072

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Three Months Ended June 30, 2001
(Unaudited)

	Assignees	General Partner	Total
Series 19
Partners' capital   (deficit)   April 1, 2001	$ 20,391,752	$  (148,037)	$ 20,243,715
Net income (loss)	(447,148)	(4,517)	(451,665)
Partners' capital   (deficit),   June 30, 2001	$ 19,944,604	$  (152,554)	$ 19,792,050

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

	2001	2000
Cash Flows from operating activities:
Net Loss	$(2,988,784)	$(3,083,797)
Adjustments
Distributions from Operating         Partnerships	53,426	18,195
Amortization	17,225	17,225
Share of Loss from Operating         Partnerships	2,356,628	2,489,704
Changes in assets and liabilities
(Decrease) Increase in accounts         payable and accrued expenses	- -	(2)
Decrease (Increase) in accounts         receivable	(141,135)	(56,925)
Decrease (Increase) in accounts         payable affiliates	777,422	682,332
Net cash (used in) provided by          operating activities	74,782	66,732
Cash Flows from investing activities:
Capital contributions paid to       Operating Partnerships	- -	- -
Advances in Operating Partnerships	-	54,340
Investments	674,886	(1,752)
Net cash (used in) provided by      investing activities	674,886	52,588

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

	2001	2000
Continued
Cash flows from financing activity:
Credit adjusters received from      Operating Partnerships	-	-
Net cash (used in)provided by         financing activity	-	-
INCREASE (DECREASE) IN CASH AND         CASH EQUIVALENTS	749,668	119,320
Cash and cash equivalents, beginning	1,122,380	1,754,063
Cash and cash equivalents, ending	$  1,872,048	$  1,873,383

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 15

	2001	2000
Cash Flows from operating activities:
Net Loss	$  (440,418)	$  (576,166)
Adjustments
Distributions from Operating         Partnerships	313	7
Amortization	2,628	2,628
Share of Loss from Operating         Partnerships	310,584	455,506
Changes in assets and liabilities
(Decrease) Increase in accounts         payable and accrued expenses	- -	(1)
Decrease (Increase) in accounts         receivable	(4,393)	(1,715)
Decrease (Increase) in accounts         payable affiliates	137,015	137,013
Net cash (used in) provided by          operating activities	5,729	17,272
Cash Flows from investing activities:
Capital contributions paid to       Operating Partnerships	- -	- -
Advances in Operating Partnerships	-	32,170
Investments	-	-
Net cash (used in) provided by      investing activities	-	32,170

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 15

	2001	2000
Continued
Cash flows from financing activity:
Credit adjusters received from      Operating Partnerships	-	-
Net cash (used in)provided by         financing activity	-	-
INCREASE (DECREASE) IN CASH AND         CASH EQUIVALENTS	5,729	49,442
Cash and cash equivalents, beginning	229,627	308,497
Cash and cash equivalents, ending	$    235,356	$    357,939

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 16

	2001	2000
Cash Flows from operating activities:
Net Loss	$  (758,180)	$  (980,457)
Adjustments
Distributions from Operating         Partnerships	3,679	1,283
Amortization	4,213	4,213
Share of Loss from Operating         Partnerships	608,222	819,165
Changes in assets and liabilities
(Decrease) Increase in accounts         payable and accrued expenses	- -	- -
Decrease (Increase) in accounts         receivable	1,093	(6,698)
Decrease (Increase) in accounts         payable affiliates	172,996	172,995
Net cash (used in) provided by          operating activities	32,023	10,501
Cash Flows from investing activities:
Capital contributions paid to       Operating Partnerships	- -	- -
Advances in Operating Partnerships	-	-
Investments	535,809	(1,752)
Net cash (used in) provided by      investing activities	535,809	(1,752)

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 16

	2001	2000
Continued
Cash flows from financing activity:
Credit adjusters received from      Operating Partnerships	-	-
Net cash (used in)provided by         financing activity	-	-
INCREASE (DECREASE) IN CASH AND         CASH EQUIVALENTS	567,832	8,749
Cash and cash equivalents, beginning	113,123	307,415
Cash and cash equivalents, ending	$    680,955	$    316,164

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 17

	2001	2000
Cash Flows from operating activities:
Net Loss	$  (647,403)	$  (598,792)
Adjustments
Distributions from Operating         Partnerships	12	1,172
Amortization	3,888	3,888
Share of Loss from Operating         Partnerships	481,118	473,016
Changes in assets and liabilities
(Decrease) Increase in accounts         payable and accrued expenses	- -	- -
Decrease (Increase) in accounts         receivable	(128,160)	(42,591)
Decrease (Increase) in accounts         payable affiliates	269,085	174,000
Net cash (used in) provided by          operating activities	(21,460)	10,693
Cash Flows from investing activities:
Capital contributions paid to       Operating Partnerships	- -	- -
Advances in Operating Partnerships	-	22,170
Investments	-	-
Net cash (used in) provided by      investing activities	-	22,170

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 17

	2001	2000
Continued
Cash flows from financing activity:
Credit adjusters received from      Operating Partnerships	-	-
Net cash (used in)provided by         financing activity	-	-
INCREASE (DECREASE) IN CASH AND         CASH EQUIVALENTS	(21,460)	32,863
Cash and cash equivalents, beginning	397,129	404,005
Cash and cash equivalents, ending	$    375,669	$    436,868

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 18

	2001	2000
Cash Flows from operating activities:
Net Loss	$  (691,118)	$  (488,708)
Adjustments
Distributions from Operating         Partnerships	2,956	15,654
Amortization	2,854	2,854
Share of Loss from Operating         Partnerships	594,861	407,350
Changes in assets and liabilities
(Decrease) Increase in accounts         payable and accrued expenses	- -	- -
Decrease (Increase) in accounts         receivable	(1,749)	(1,284)
Decrease (Increase) in accounts         payable affiliates	95,487	95,487
Net cash (used in) provided by          operating activities	3,291	31,353
Cash Flows from investing activities:
Capital contributions paid to       Operating Partnerships	- -	- -
Advances in Operating Partnerships
Investments	-	-
Net cash (used in) provided by      investing activities	-	-

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 18

	2001	2000
Continued
Cash flows from financing activity:
Credit adjusters received from      Operating Partnerships	-	-
Net cash (used in)provided by         financing activity	-	-
INCREASE (DECREASE) IN CASH AND         CASH EQUIVALENTS	3,291	31,353
Cash and cash equivalents, beginning	238,396	377,094
Cash and cash equivalents, ending	$    241,687	$    408,447

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 19

	2001	2000
Cash Flows from operating activities:
Net Loss	$  (451,665)	$  (439,674)
Adjustments
Distributions from Operating         Partnerships	46,466	79
Amortization	3,642	3,642
Share of Loss from Operating         Partnerships	361,843	334,667
Changes in assets and liabilities
(Decrease) Increase in accounts         payable and accrued expenses	- -	(1)
Decrease (Increase) in accounts         receivable	(7,926)	(4,637)
Decrease (Increase) in accounts         payable affiliates	102,839	102,837
Net cash (used in) provided by          operating activities	55,199	(3,087)
Cash Flows from investing activities:
Capital contributions paid to       Operating Partnerships	- -	- -
Advances in Operating Partnerships	-	-
Investments	139,077	-
Net cash (used in) provided by      investing activities	139,077	-

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 19

	2001	2000
Continued
Cash flows from financing activity:
Credit adjusters received from      Operating Partnerships	-	-
Net cash (used in)provided by         financing activity	-	-
INCREASE (DECREASE) IN CASH AND         CASH EQUIVALENTS	194,276	(3,087)
Cash and cash equivalents, beginning	144,105	357,052
Cash and cash equivalents, ending	$    338,381	$    353,965

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2001

(Unaudited)

NOTE A - ORGANIZATION

Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws
of the State of Delaware as of September 19, 1991 for the purpose of
acquiring, holding, and disposing of limited partnership interests in
Operating Partnerships which will acquire, develop, rehabilitate, operate and
own newly constructed, existing or rehabilitated low-income apartment
complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was
a restructuring, and as a result, the Fund's general partner was reorganized
as follows. The General Partner of the Fund continues to be Boston Capital
Associates III L.P., a Delaware limited partnership. The general partner of
the General Partner is now BCA Associates Limited Partnership, a Massachusetts
limited partnership, whose sole general partner is C&M Management, Inc., a
Massachusetts corporation and whose limited partners are Herbert F. Collins
and John P. Manning. Mr. Manning is the principal of Boston Capital Partners,
Inc. The limited partner of the General Partner is Capital Investment
Holdings, a general partnership whose partners are certain officers and
employees of Boston Capital Partners, Inc., and its affiliates. The Assignor
Limited Partner is BCTC III Assignor Corp., a Delaware corporation which is
wholly-owned by Herbert F. Collins and John P. Manning.


Pursuant to the Securities Act of 1933, the Fund filed a Form S-11
Registration Statement with the Securities and Exchange Commission, effective
January 24, 1992 which covered the offering (the "Public Offering") of the
Fund's beneficial assignee certificates ("BACs") representing assignments of
units of the beneficial interest of the limited partnership interest of the
Assignor Limited Partner.  The Fund registered 20,000,000 BACs at $10 per BAC
for sale to the public in one or more series.  On September 4, 1993 the Fund
filed an amendment to Form S-11 with the Securities and Exchange Commission
which registered an additional 2,000,000 BACs at $10 per BAC for sale to the
public in one or more series. The registration for the additional BACs became
effective on October 6, 1993. Offers and sales of BACs in Series 15 through 19
of the Fund were completed and the last of the BACs in Series 15, 16, 17, 18
and 19 were issued by the Fund on June 26, 1992, December 28, 1992, June 17,
1993, September 22, 1993, and December 17, 1993, respectively.  The Fund sold
3,870,500 of Series 15 BACs, for a total of $38,705,000; 5,429,402 of Series
16 BACs, for a total of $54,293,000; 5,000,000 of Series 17 BACs, for a total
of $50,000,000; 3,616,200 of Series 18 BACs, for a total of $36,162,000; and
4,080,000 of Series 19 BACs, for a total of $40,800,000.  The Fund issued the
last BACs in Series 19 on December 17, 1993.  This concluded the Public
offering of the Fund.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2001
(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of June 30, 2001 and for
the three months then ended have been prepared by the Fund, without
audit.  The Fund accounts for its investments in Operating Partnerships using
the equity method, whereby the Fund adjusts its investment cost for its share
of each Operating Partnership's results of operations and for any
distributions received or accrued.  Costs incurred by the Fund in acquiring
the investments in the Operating Partnerships are capitalized to the
investment account.  The Fund's accounting and financial reporting policies
are in conformity with generally accepted accounting principles and include
adjustments in  interim periods considered necessary for a fair presentation
of the results of operations.  Such adjustments are of a normal recurring
nature.

Investments

The Fund has included in investments Certificates of Deposit with original
materities of one year or less. These investments are carried at costs.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2001
(Unaudited)

Amortization

On July 1, 1995, the Fund began amortizing unallocated acquisition
costs over 330 months from April 1, 1995. As of June 30, 2001 the Fund has
accumulated unallocated acquisition amortization totaling $436,107.  The
breakdown of accumulated unallocated acquisition amortization within the fund
as of June 30, 2001 and 2000 is as follows:

	2001	2000
Series 15	$ 65,797	$ 55,286
Series 16	105,321	88,471
Series 17	105,090	89,540
Series 18	71,463	60,050
Series 19	88,436	73,866
	$436,107	$367,213

NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates
of the general partner, including Boston Capital Partners, Inc., and Boston
Capital Asset Management Limited Partnership as follows:

Boston Capital Partners, Inc. is entitled to asset acquisition fees for
selecting, evaluating, structuring, negotiating, and closing the Funds
acquisition of interests in the Operating Partnerships.   Prior to the quarter
ended June 30, 2001 all series had completed payment of all acquisition fees
due to Boston Capital Partners, Inc.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2001
(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS - CONTINUED

An annual fund management fee based on .5 percent of the aggregate cost
of all apartment complexes owned by the Operating Partnerships, has been
accrued to Boston Capital Asset Management Limited Partnership.  The fund
management fees accrued for the quarter ended June 30, 2001 and 2000 are as
follows:

	2001	2000
Series 15	$137,013	$137,013
Series 16	172,995	172,995
Series 17	140,925	140,925
Series 18	95,487	95,487
Series 19	102,837	102,837
	$649,257	$649,257

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At June 30, 2001 and 2000, the Fund had limited partnership interests in
241 Operating Partnerships which own or are constructing apartment
complexes.  The breakdown of Operating Partnerships within the Fund at June
30, 2001 and 2000 is as follows:

Series 15	68
Series 16	64
Series 17	49
Series 18	34
Series 19	26
	241

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - CONTINUED

Under the terms of the Fund's investment in each Operating Partnership,
the Fund is required to make capital contributions to the Operating
Partnerships.  These contributions are payable in installments over several
years upon each Operating Partnership achieving specified levels of
construction and/or operations.  The contributions payable at June 30, 2001
and 2000 are as follows:  

	2001	2000
Series 15	$ 16,206	$   32,922
Series 16	138,506	140,006
Series 17	1,186,768	1,206,768
Series 18	18,554	18,554
Series 19	24,000	34,000
	$1,384,034	$1,432,250

The Funds fiscal year ends March 31st of each year, while all the Operating
Partnerships' fiscal years are the calendar year.  Pursuant to the provisions
of each Operating Partnership Agreement, financial results for each of the
Operating Partnerships are provided to the Fund within 45 days after the close
of each Operating Partnerships quarterly period.  Accordingly, the current
financial results available for the Operating Partnerships are for the three
months ended March 31, 2001.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)

Series 15

	2001	2000
Revenues
Rental	$  2,552,986	$  2,486,174
Interest and other	100,993	82,688
	2,653,979	2,568,862
Expenses
Interest	690,636	687,628
Depreciation and amortization	872,515	902,907
Operating expenses	1,707,206	1,653,173
	3,270,357	3,243,708
NET LOSS	$  (616,378)	$  (674,846)
Net loss allocation to Boston      Capital Tax Credit Fund     III L.P.	$  (310,584)	$  (455,506)
Net loss allocated to other     Partners	$    (6,164)	$    (6,748)
Net loss suspended	$  (299,630)	$  (212,592)

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)

Series 16

	2001	2000
Revenues
Rental	$  3,260,693	$  3,367,472
Interest and other	131,989	139,573
	3,392,682	3,507,045
Expenses
Interest	878,033	996,864
Depreciation and amortization	1,152,243	1,239,477
Operating expenses	2,118,641	2,204,378
	4,148,917	4,440,719
NET LOSS	$  (756,235)	$  (933,674)
Net loss allocation to Boston      Capital Tax Credit Fund     III L.P.	$  (608,222)	$  (819,165)
Net loss allocated to other     Partners	$    (7,562)	$    (9,337)
Net loss suspended	$  (140,451)	$  (105,172)

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)

Series 17

	2001	2000
Revenues
Rental	$  3,040,833	$  2,934,851
Interest and other	105,039	106,438
	3,145,872	3,041,289
Expenses
Interest	942,480	905,724
Depreciation and amortization	957,277	930,184
Operating expenses	1,870,452	1,746,883
	3,770,209	3,582,791
NET LOSS	$  (624,337)	$  (541,502)
Net loss allocation to Boston      Capital Tax Credit Fund     III L.P.	$  (481,118)	$  (473,016)
Net loss allocated to other     Partners	$    (6,244)	$   (68,486)
Net Loss Suspended	$  (136,975)	$          -

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)

Series 18

	2001	2000
Revenues
Rental	$  1,691,947	$  1,649,338
Interest and other	45,151	86,082
	1,737,098	1,735,420
Expenses
Interest	512,831	470,360
Depreciation and amortization	642,559	630,183
Operating expenses	1,214,852	1,062,904
	2,370,242	2,163,447
NET LOSS	$  (633,144)	$  (428,027)
Net loss allocation to Boston      Capital Tax Credit Fund     III L.P.	$  (594,861)	$  (407,350)
Net loss allocated to other     Partners	$    (6,331)	$    (4,280)
Net loss suspended	$   (31,952)	$   (16,397)

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)

Series 19

	2001	2000
Revenues
Rental	$  2,442,319	$  2,375,194
Interest and other	61,362	65,676
	2,503,681	2,440,870
Expenses
Interest	822,043	803,038
Depreciation and amortization	724,214	742,598
Operating expenses	1,334,282	1,240,333
	2,880,539	2,785,969
NET LOSS	$  (376,858)	$  (345,099)
Net loss allocation to Boston      Capital Tax Credit Fund     III L.P.	$  (361,843)	$  (334,667)
Net loss allocated to other     Partners	$    (3,769)	$    (3,451)
Net loss suspended	$   (11,246)	$    (6,981)

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
June 30, 2001
(Unaudited)

NOTE E - TAXABLE LOSS

The Fund's taxable loss for the year ended March 31, 2002 is expected to
differ from its loss for financial reporting purposes.  This is primarily due
to accounting differences in depreciation incurred by the Operating
Partnerships and also differences between the equity method of accounting and
the IRS accounting methods.  No provision or benefit for income taxes has been
included in these financial statements since taxable income or loss passes
through to, and is reportable by, the partners and assignees individually

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

Liquidity

The Funds primary source of funds is the proceeds of its Public
Offering.  Other sources of liquidity will include (i) interest earned on
capital contributions held pending investment and on Working Capital Reserves
and (ii) cash distributions from operations of the operating Partnerships in
which the Fund has and will invest.  Interest income is expected to decrease
over the life of the Fund as capital contributions are paid to the Operating
Partnerships and Working Capital Reserves are expended.    The Fund does not
anticipate significant cash distributions from operations of the Operating
Partnerships.

The Fund is currently accruing the fund management fee.  Fund management
fees accrued during the quarter ended June 30, 2001 were $649,257 and total
fund management fees accrued as of June 30, 2001 were $14,497,281. Pursuant
to the Partnership Agreement, such liabilities will be deferred until the Fund
receives sales of refinancing proceeds from Operating Partnerships which will
be used to satisfy such liabilities.  The Funds working capital and sources of
liquidity coupled with affiliated party liability accruals allow sufficient
levels of liquidity to meet the third party obligations of the Fund.   The
Fund is currently unaware of any trends which would create insufficient
liquidity to meet future third party obligations of the Fund.

The Fund has recorded an additional $1,320,928 as payable to affiliates.
This represents fundings to make advances and/or loans to certain Operating
Partnerships in Series 15 and Series 17 of the Fund of $213,564, and
$1,107,364 respectively.

Capital Resources

The Fund offered BACs in a Public Offering declared effective by the
Securities and Exchange Commission on January 24, 1992.  The Fund received
$38,705,000, $54,293,000, $50,000,000, $36,162,000 and $40,800,000
representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and 4,080,000 BACs
from investors admitted as BAC Holders in Series 15, Series 16, Series 17,
Series 18, and Series 19, respectively.  The Public Offering was completed on
December 17, 1993.

(Series 15)  The Fund commenced offering BACs in Series 15 on January 24,
1992.  Offers and sales of BACs in Series 15 were completed on June 26,
1992.  The Fund has committed proceeds to pay initial and additional
installments of capital contributions to 68 Operating Partnerships in the
amount of $28,257,701.

During the quarter ended June 30, 2001, none of Series 15 net offering
proceeds had been used to pay capital contributions. Series 15 net offering
proceeds in the amount of $16,206 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that  Series 15
has invested in as of June 30, 2001.

(Series 16)  The Fund commenced offering BACs in Series 16 on July 13, 1992.
Offers and sales of BACs in Series 16 were completed on December 28, 1992. The
Fund has committed proceeds to pay initial and additional installments of
capital contributions to 64 Operating Partnerships in the amount of
$39,579,774.

     During the quarter ended June 30, 2001, none of Series 16 net offering
proceeds had been used to pay capital contributions.  Series 16 net offering
proceeds in the amount of $138,506 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 16
has invested in as of June 30, 2001.

(Series 17)  The Fund commenced offering BACs in Series 17 on January 24,
1993.  Offers and sales of BACs in Series 17 were completed on June 17, 1993.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 49 Operating Partnerships in the amount of
$36,538,204.

     During the quarter ended June 30, 2001, none of Series 17 net offering
proceeds had been used to pay capital contributions.  Series 17 has
outstanding contributions payable in the amount of $1,186,768 as of June 31,
2001. Of the amount outstanding, $1,139,873 has been advanced or loaned to
the Operating Partnerships. The advances and loans will be converted to
capital and the remaining contributions of $46,895 will be released from
available net offering proceeds when the Operating Partnerships have achieved
the conditions set forth in their partnership agreements.

(Series 18)  The Fund commenced offering BACs in Series 18 on June 17, 1993.
Offers and sales of BACs in Series 18 were completed on September 22, 1993.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 34 operating Partnerships in the amount of
$26,442,202.

During the quarter ended June 30, 2001, none of Series 18 net offering
proceeds had been used to pay capital contributions.  Series 18 net offering
proceeds in the amount of $18,554 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 18
has invested in as of June 30, 2001.

(Series 19).  The Fund commenced offering BACs in Series 19 on October 8,
1993.  Offers and sales of BACs in Series 19 were completed on December 17,
1993.  The Fund has committed proceeds to pay initial and additional
installments of capital contributions to 26 Operating Partnerships in the
amount of $29,614,506.

During the quarter ended June 30, 2001, none of Series 19 net offering
proceeds had been used to pay capital contributions.  Series 19 net offering
proceeds in the amount of $24,000 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 19
has invested in as of June 30, 2001.

Results of Operations

As of June 30, 2001 and 2000 the Fund held limited partnership
interests in 241 Operating Partnerships.  In each instance the Apartment
Complex owned by the applicable Operating Partnership is eligible for the
Federal Housing Tax Credit.  Occupancy of a unit in each Apartment Complex
which initially complied with the Minimum Set-Aside Test (i.e., occupancy by
tenants with incomes equal to no more than a certain percentage of area median
income) and the Rent Restriction Test (i.e., gross rent charged tenants does
not exceed 30% of the applicable income standards) is referred to hereinafter
as "Qualified Occupancy."  Each of the Operating Partnerships and each of the
respective Apartment Complexes are described more fully in the Prospectus or
applicable report on Form 8-K.  The General Partner believes that there is
adequate casualty insurance on the properties.

The Fund incurred a fund management fee to Boston Capital Asset
Management Limited Partnerships (formerly Boston Capital Communications
Limited Partnership) in an amount equal to .5 percent of the aggregate cost of
the apartment complexes owned by the Operating Partnerships, less the amount
of certain asset management and reporting fees paid by the Operating
Partnerships.  The fund management fees incurred for the quarter ended
June 30, 2001 for Series 15, Series 16, Series 17, Series 18 and Series 19
were $119,368, $136,198, $119,219, $86,634, and $87,071 respectively.

The Funds investment objectives do not include receipt of significant
cash distributions from the Operating Partnerships in which it has invested or
intends to invest.  The Funds investments in Operating Partnerships have been
made principally with a view towards realization of Federal Housing Tax
Credits for allocation to its partners and BAC holders.

Series 15

As of June 30, 2001 and 2000, the average qualified occupancy for the
series was 100% for both years.  The series had a total of 68 properties at
June 30, 2001, all of which were at 100% qualified occupancy.

For the three months being reported Series 15 reflects a net loss from
Operating Partnerships of $616,378.  When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$256,137.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

    Operations continue to improve at Hidden Cove Apartments (Hidden Cove) as
evidenced by stabilized occupancy and increased rental collections. Occupancy
for the second quarter of 2001 averaged 98%. To date, the property has been
able to complete minor capital improvements and fund its replacement reserve
account without financial assistance. The property operated above breakeven
for the year 2000 and continued to do so through the second quarter of 2001.
At this time, the Operating General Partner has completed negotiations with
the property's management company and has transferred the Operating General
Partnership interest to that entity effective January 1, 2001. It is
anticipated that the addition of a local Operating General Partner will
enhance the property's ability to refinance its permanent mortgage.

In April of 2000, School Street I LP, (School Street Apartments - Phase
I) inserted Marshall School Street I, LLC, as the Operating General Partner
and property management company. Since taking control, the management company
completed the capital improvements program and improved the tenant selection
criteria. As a result, physical occupancy at the property improved and should
continue to improve in to 2001. During the first six months of 2001 occupancy
averaged 97%. Based on the higher occupancy and the improved tenant selection
criteria, the property's operations and cash should improve in 2001. The
Operating General Partner continues to fund any operating cash deficits.

Series 16

As of June 30, 2001 and 2000, the average qualified occupancy for the
series was 99.9% and 99.7%,respectively. The series had a total of 64
properties at June 30, 2001.  Out of the total, 62 had 100% qualified
occupancy.

For the three months being reported Series 16 reflects a net loss from
Operating Partnerships of $756,235.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$396,008.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Cass Partners, L.P. (Fitzgerald Apartments) continues to operate below
breakeven due to low occupancy. An increased supply of affordable housing in
the area with superior amenities hampered marketing efforts and made tenant
retention difficult. Average physical occupancy for 2000 was 75%, down from an
average of 85% in 1999. Occupancy trended up to an average of 80% for the
first quarter ended March 31, 2001 and 82% for the second quarter ended June
30, 2001. Property management has lowered rents during 2001 to better compete
against the newer affordable housing complexes. As a result of the improved
occupancy and reduced operating expenses, operations have improved from the
same period in 2000. Marketing efforts are referrals from the nearby Air
Force Base, newspaper advertising and flyers. The Operating General Partner
continues to support the property financially. The second mortgage was
renewed on April 26, 2001 with a reduction in the interest rate. The
mortgage, taxes, and payable are current.

In January of 2001, Haynes House Associates II, L.P. (Haynes House
Apartments) experienced a fire in one of the units due to tenant neglect.
Only the unit in which the fire started suffered fire damage, however;
surrounding units experienced smoke and water damage. All of the units have
been repaired as of March 31, 2001. The Insurance company covered all costs
incurred after the $1,000 deductible to repair the damages caused by the fire.
The tenant responsible for the fire has been evicted and the unit has been re-
leased

Series 17

   As of June 30, 2001 and 2000, the average qualified occupancy for the
series was 99.7% for both years.  The series had a total of 49 properties at
June 30, 2001.  Out of the total 48 had 100% qualified occupancy.

For the three months being reported Series 17 reflects a net loss from
Operating Partnerships of $624,337.  When adjusted for depreciation, which,
is a non-cash item, the Operating Partnerships reflect positive operations of
$332,940. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

  Annadale Housing Partners (Kingsview Manor & Estates) has historically
reported net losses due to operational issues associated with the
property.  Average occupancy for the year 2000 was 93.54%. Occupancy remains
stable at 90% for the second quarter of 2001. During 1999 the mortgage was
restructured to reduce operating costs. As a result of the mortgage
restructure and improved occupancy the property maintained break-even
operations during 2000. An affiliate of the management company assumed the
General Partner responsibilities for the partnership, on January 1, 2001. The
Investment General Partner continues to monitor this situation closely.

The mortgage lender for Cypress Point Limited Partnership (Laurel Ridge
Apartment) placed the partnership in default of its mortgage because the
property failed to achieve the required debt service coverage ratio and failed
to make its required real estate tax payment. The existing loan terms
provided for an interest rate adjustment after the initial five-year permanent
mortgage period. When this adjustment occurred there was a rate increase,
which in turn increased the property's debt service payment, adversely
affecting operations. The Investment Limited Partner advanced funds to the
partnership to bring the taxes current. In September 2000, BCP Wisconsin
LLC became the managing general partner of the partnership. BCP Wisconsin LLC
negotiated a standstill agreement with the lender in order to allow time to
devise different options for dealing with existing loan defaults. The lender
was not amenable to the work out plan that BCP Wisconsin LLC had previously
proposed. BCP Wisconsin LLC ultimately decided that the interests of the
property would best be served if it took out the existing lender under a
refinancing with an alternate mortgage lender. Application for refinancing
was made with an alternate lender. In June of 2001 the Investment General
Partner refinanced the first mortgage and put in place BCP Cypress LLC as the
new sole General Partner. The refinancing provided significantly more
favorable loan terms. The scope of capital improvement at the property is
nearing completion and is having a positive impact on rents. No further
funding advances from the Investment Limited Partner are expected to be
required. The loan proceeds from the refinancing will allow repayment of all
prior advances (including capital improvement work) from the Investment
Limited Partner.

The area surrounding the property owned by California Investors VI LP
(Orchard Park) continues to experience economic growth. Currently a high
school is in the process of being built across the street from the front
entrance of the community. It is anticated that the school will open this
fall. The location of this school will continue to enhance marketing efforts.
Occupancy averaged 98% for the second quarter of 2001. In addition to the
positive changes affecting this partnership, an affiliate of the management
company assumed the General Partner responsibilities for the partnership on
January 1, 2001.

Physical occupancy at Palmetto Properties Ltd. (Palmetto Villas)
for 2000 averaged 84%. Occupancy in the first half of 2001 has increased
97%. The property suffered from low occupancy in 1999 and the first half of
2000 due to poor on-site management and significant deferred maintenance
issues. As a result, the property management company was replaced in January
2000. Since the management company change occurred, occupancy levels have
steadily increased as improvements have been made at the property and deferred
maintenance has been addressed. However, property taxes remain in arrears for
1998, 1999, and 2000. At this time, the Investment General Partner is working
with the new management company to obtain low interest deferred maintenance
loans to complete the remaining necessary repairs, and cure the tax
delinquency. The Investment General Partner continues negotiations with the
current Operating General Partner aimed at removing him from the partnership.
The new management company has expressed interest in assuming the role of
Operating General Partner, and based on the management company's performance
to date, the partnership would benefit substantially from this arrangement.

Series 18

 As of June 30, 2001 and 2000 the average qualified occupancy
for the series was 100% for both years.  The series had a total of
34 properties at June 30, 2001, all of which were at 100% qualified
occupancy.

For the three months being reported Series 18 reflects a net loss from
Operating Partnerships of $633,144.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$9,415.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Harris Housing Limited Partnership (Harris Music Lofts), located in West
Palm Beach, Florida, operated below break-even for the second quarter of 2001
mainly due to high operating expenses. Insurance costs in the state of
Florida have increased significantly during 2001. In addition, the project
has performed some necessary roof repairs. The General Partner continues to
share operating costs with an affiliated property in the same neighborhood in
an attempt to reduce expenses. The Operating Genral Partner has also managed
to secure a rental increase resulting in a net increase of gross potential
rents of $18,000 annually. It is anticipated that the project will breakeven
in 2002. Average occupancy for the second quarter of 2001 was strong at 97%.

Marengo Park Apartments, Limited Partnership (Marengo Park) operated
below breakeven due to low occupancy levels. Occupancy averaged 84% in 2000.
Management has attributed the occupancy problem to the local economy. Due to
historical low occupancy rates, the property suffered from under funded
reserves and delinquent real estate taxes. The Investment General Partner and
the Operating General Partner negotiated a workout plan with Rural Development
to address these issues. Now that the workout plan is in place both real
estate taxes and reserves are current. Additionally, Rural Development
approved Special Market Rate rents at the property in an effort to improve
occupancy. Occupancy continued to improve into the second quarter of 2001,
averaging 96% for June 2001.

Parvin's Limited Partnership (Parvin's Branch Townhomes) continues to
incur operating deficits due to higher than average operating expenses and
debt service.  The management company increased the number of transitional
units to five from two. There are several reasons for the additional
transitional units, including the receipt of additional funding from HUD to
subsidize the units. In addition, originally transitional residents were only
allowed to live at the property for 30-days, thus, the property would incur
significant maintenance and turnover costs. Currently, transitional residents
are allowed to reside at the property for up to six months, which has
significantly reduced the turnover costs. The Operating General Partner and
the management company have been deferring their respective fees to improve
the property's cash flow.  In addition, the Operating General Partner
continues to fund deficits.  The property currently has an occupancy rate of
100%. The management company continues to monitor operating expenses and
reports that expenses remain stable and within acceptable levels. The
management company reports the property generates sufficient cash flow to
cover the operating expenses. However the property continues to operate with a
deficit as a result of the high debt service requirement and/or refinance the
existing debt. Management continues to anticipate breakeven operations when
the debt service requirement is reduced.

On March 20, 2000 Glen Place Apartments Limited Partnership (Glen Place
Apartments) received a 60-Day letter from the IRS stating the Operating
Partnership had not met certain IRS Section 42 requirements. The Investment
Limited Partner was notified of the 60-day letter in the second quarter of
2000. The IRS has proposed an adjustment that would disallow the Partnership
from utilizing certain past or future credits. In late October 2000, counsel
representing the General Partner had a conference with the appellate conferee.
At this point, conversations with the appellate conferee continue but no
deadline has been set forth settling the case. The Operating General
Partner and its counsel do not anticipate an outcome that would have a
material effect on the financial statements and accordingly, no adjustment has
been made in the accompanying financial statements. While the Operating
General Partner and its counsel are of this opinion, it is of the opinion of
the Investment General Partner that the outcome could, in total, be material.
At this point, no adjustments have been made to the accompaning financial
statement. The Investment General Partner will continue to closely monitor
the process.

Series 19

  As of June 30, 2001 and 2000 the average qualified occupancy
for the series was 100% for both years.  The series had a total of 26
properties at June 30, 2001, all of which were at 100% qualified
occupancy.

For the three months being reported Series 19 reflects a net loss from
Operating Partnerships of $376,858.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$347,356. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

         None

Item 2.  Changes in Securities

         None

Item 3.  Defaults upon Senior Securities

         None

Item 4.  Submission of Matters to a Vote of Security Holders

         None

Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits

         None

         (b)  Reports on Form 8-K

SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange
Act of 1934, the Fund has duly caused this Report to be signed on its behalf
by the undersigned, thereunto duly authorized.

	Boston Capital Tax Credit Fund III L.P.
	By:	Boston Capital Associates III L.P.
		General Partner
	By:	BCA Associates Limited Partnership,
		General Partner
	By:	C&M Management Inc.,
		General Partner
Date: August 15, 2001	By:	/s/ John P. Manning
		John P. Manning

Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the Fund
and in the capacities and on the dates indicated:

DATE:	SIGNATURE:	TITLE:
August 15, 2001	/s/ John P. Manning	Director, President
		(Principal Executive
	John P. Manning	Officer) C&M Management
		Inc.; Director,
		President (Principal
		Executive Officer)
		BCTC III Assignor Corp.