Exhibit 13

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

BOSTON CAPITAL TAX CREDIT FUND III L.P. -

SERIES 15 THROUGH SERIES 19

MARCH 31, 2008 AND 2007

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

March 31, 2008 and 2007

TABLE OF CONTENTS

		PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		F-3
FINANCIAL STATEMENTS
	BALANCE SHEETS	F-5
	STATEMENTS OF OPERATIONS	F-11
	STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)	F-17
	STATEMENTS OF CASH FLOWS	F-23
	NOTES TO FINANCIAL STATEMENTS	F-29

Schedules not listed are omitted because of the absence of the conditions under which they are required or because the information is included in the financial statements or the notes thereto.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners

Boston Capital Tax Credit Fund III, L.P.

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19, in total and for each series, as of March 31, 2008 and 2007, and the related statements of operations, changes in partners’ capital and cash flows for the total partnership and for each of the series for each of the years in the two-year period ended March 31, 2008.  These financial statements are the responsibility of the partnership’s management.  Our responsibility is to express an opinion on these financial statements based on our audits.  We did not audit the financial statements of certain operating limited partnerships which investments represent $232,003 and $728,741 of the total partnership assets as of March 31, 2008 and 2007, respectively, and $(808,242) and $(593,912), of the total partnership loss for the years ended March 31, 2008 and 2007, respectively; of the assets for Series 15 as of March 31, 2008 and 2007, $201,333 and $289,968, respectively, and of the loss for Series 15 for the years ended March 31, 2008 and 2007, $(88,635) and $(117,013), respectively; of the assets for Series 16 as of March 31, 2008 and 2007, $0 and $0, respectively, and of the loss for Series 16 for the years ended March 31, 2008 and 2007, $(551,518) and $0, respectively; of the assets for Series 17 as of March 31, 2008 and 2007, $0 and $240,014 , respectively, and of the loss for Series 17 for the years ended March 31, 2008 and 2007, $0 and $(202,389), respectively; of the assets for Series 18 as of March 31, 2008 and 2007, $0 and $22,873 , respectively, and of the loss for Series 18 for the years ended March 31, 2008 and 2007, $(22,873) and $(120,600), respectively; and of the assets for Series 19 as of March 31, 2008 and 2007, $30,670 and $175,886, respectively, and of the loss for Series 19 for the years ended March 31, 2008 and 2007, $(145,216) and $(153,510), respectively.  Those statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to those operating limited partnerships, is based solely on the reports of the other auditors.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The partnership has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the partnership’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits and the reports of the other auditors provide a reasonable basis for our opinion.

F-3

In our opinion, based on our audits and the reports of the other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund III L.P. - Series 15 through Series 19, in total and for each series, as of March 31, 2008 and 2007, and the results of its operations and its cash flows for the total partnership and for each of the series for each of the years in the two-year period ended March 31, 2008, in conformity with accounting principles generally accepted in the United States of America.

/s/ Reznick Group, P.C.

REZNICK GROUP, P.C.

Bethesda, Maryland

July 14, 2008

F-4

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS

March 31, 2008 and 2007

	Total
	2008			2007
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	1,661,004		$	3,419,039
OTHER ASSETS
Cash and cash equivalents	775,079			1,947,702
Deferred acquisition costs, net of accumulated amortization	756,674			809,059
Other assets	63,707			56,367
	$	3,256,464		$	6,232,167
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	18,050		$	1,145
Accounts payable - affiliates	26,335,867			25,148,800
Capital contributions payable	158,311			162,519
	26,512,228			25,312,464
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 21,996,102 issued to the assignees at March 31, 2008 and 2007	—			—
Limited Partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and outstanding at March 31, 2008 and 2007	(21,152,928		)	(17,019,215		)
General partner	(2,102,836		)	(2,061,082		)
	(23,255,764		)	(19,080,297		)
	$	3,256,464		$	6,232,167

(continued)

F-5

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2008 and 2007

	Series 15
	2008			2007
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	209,560		$	361,924
OTHER ASSETS
Cash and cash equivalents	200,415			1,345,224
Deferred acquisition costs, net of accumulated amortization	110,958			118,611
Other assets	28,707			21,367
	$	549,640		$	1,847,126
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	16,526		$	1,145
Accounts payable - affiliates	5,080,035			5,863,264
Capital contributions payable	—			4,208
	5,096,561			5,868,617
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,870,500 issued to the assignees at March 31, 2008 and 2007	—			—
Limited Partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued and outstanding at March 31, 2008 and 2007	(4,179,262		)	(3,659,086		)
General partner	(367,659		)	(362,405		)
	(4,546,921		)	(4,021,491		)
	$	549,640		$	1,847,126

(continued)

F-6

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2008 and 2007

	Series 16
	2008			2007
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	478,018		$	1,126,865
OTHER ASSETS
Cash and cash equivalents	197,645			190,149
Deferred acquisition costs, net of accumulated amortization	153,702			164,302
Other assets	—			—
	$	829,365		$	1,481,316
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	381		$	—
Accounts payable - affiliates	7,210,716			6,572,789
Capital contributions payable	71,862			71,862
	7,282,959			6,644,651
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,429,402 issued to the assignees at March 31, 2008 and 2007	—			—
Limited Partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and outstanding at March 31, 2008 and 2007	(5,922,449		)	(4,645,093		)
General partner	(531,145		)	(518,242		)
	(6,453,594		)	(5,163,335		)
	$	829,365		$	1,481,316

(continued)

F-7

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2008 and 2007

	Series 17
	2008			2007
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	779,743		$	1,286,994
OTHER ASSETS
Cash and cash equivalents	190,524			165,814
Deferred acquisition costs, net of accumulated amortization	158,372			169,684
Other assets	30,000			30,000
	$	1,158,639		$	1,652,492
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	381		$	—
Accounts payable - affiliates	6,957,896			6,440,636
Capital contributions payable	67,895			67,895
	7,026,172			6,508,531
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 5,000,000 issued to the assignees at March 31, 2008 and 2007	—			—
Limited Partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued and outstanding at March 31, 2008 and 2007	(5,388,080		)	(4,386,701		)
General partner	(479,453		)	(469,338		)
	(5,867,533		)	(4,856,039		)
	$	1,158,639		$	1,652,492

(continued)

F-8

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS- CONTINUED

March 31, 2008 and 2007

	Series 18
	2008			2007
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	—		$	92,946
OTHER ASSETS
Cash and cash equivalents	76,676			107,343
Deferred acquisition costs, net of accumulated amortization	121,667			130,058
Other assets	5,000			5,000
	$	203,343		$	335,347
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	381		$	—
Accounts payable - affiliates	4,396,304			3,994,750
Capital contributions payable	18,554			18,554
	4,415,239			4,013,304
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 3,616,200 issued to the assignees at March 31, 2008 and 2007	—			—
Limited Partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,616,200 issued and outstanding at March 31, 2008 and 2007	(3,859,550		)	(3,330,950		)
General partner	(352,346		)	(347,007		)
	(4,211,896		)	(3,677,957		)
	$	203,343		$	335,347

(continued)

F-9

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2008 and 2007

	Series 19
	2008			2007
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	193,683		$	550,310
OTHER ASSETS
Cash and cash equivalents	109,819			139,172
Deferred acquisition costs, net of accumulated amortization	211,975			226,404
Other assets	—			—
	$	515,477		$	915,886
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	381		$	—
Accounts payable - affiliates	2,690,916			2,277,361
Capital contributions payable	—			—
	2,691,297			2,277,361
PARTNERS’ CAPITAL (DEFICIT)
Assignor limited partner
Units of limited partnership interest consisting of 22,000,000 authorized beneficial assignee certificates (BAC), $10 stated value per BAC, 4,080,000 issued to the assignees at March 31, 2008 and 2007	—			—
Limited Partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 4,080,000 issued and outstanding at March 31, 2008 and 2007	(1,803,587		)	(997,385		)
General partner	(372,233		)	(364,090		)
	(2,175,820		)	(1,361,475		)
	$	515,477		$	915,886

See notes to financial statements

F-10

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS

Years ended March 31, 2008 and 2007

	Total
	2008			2007
Income
Interest income	$	32,125		$	41,815
Other income	28,450			96,772
Total income	60,575			138,587
Share of income (losses) from operating limited partnerships	(1,376,172		)	(1,280,294		)
Expenses
Professional fees	234,608			282,015
Partnership management fee	2,073,124			2,138,666
Amortization	52,385			52,384
Impairment loss	293,550			1,365,076
General and administrative expenses	206,203			208,273
	2,859,870			4,046,414
NET INCOME (LOSS)	$	(4,175,467	)	$	(5,188,121	)
Net income (loss) allocated to general partner	$	(41,754	)	$	(51,881	)
Net income (loss) allocated to limited partners	$	(4,133,713	)	$	(5,136,240	)
Net income (loss) per BAC	$	(0.19	)	$	(0.23	)

(continued)

F-11

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 15
	2008			2007
Income
Interest income	$	11,941		$	15,446
Other income	1,249			4,837
Total income	13,190			20,283
Share of income (losses) from operating limited partnerships	(65,374		)	1,006,045
Expenses
Professional fees	55,253			66,443
Partnership management fee	362,888			393,151
Amortization	7,653			7,652
Impairment loss	6,087			—
General and administrative expenses	41,365			42,512
	473,246			509,758
NET INCOME (LOSS)	$	(525,430	)	$	516,570
Net income (loss) allocated to general partner	$	(5,254	)	$	5,166
Net income (loss) allocated to limited partners	$	(520,176	)	$	511,404
Net income (loss) per BAC	$	(0.13	)	$	0.13

(continued)

F-12

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 16
	2008			2007
Income
Interest income	$	6,507		$	6,985
Other income	9,540			4,954
Total income	16,047			11,939
Share of income (losses) from operating limited partnerships	(645,050		)	(830,125		)
Expenses
Professional fees	54,183			67,919
Partnership management fee	546,653			555,951
Amortization	10,600			10,600
Impairment loss	—			—
General and administrative expenses	49,820			49,284
	661,256			683,754
NET INCOME (LOSS)	$	(1,290,259	)	$	(1,501,940	)
Net income (loss) allocated to general partner	$	(12,903	)	$	(15,019	)
Net income (loss) allocated to limited partners	$	(1,277,356	)	$	(1,486,921	)
Net income (loss) per BAC	$	(0.24	)	$	(0.27	)

(continued)

F-13

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 17
	2008			2007
Income
Interest income	$	6,639		$	12,850
Other income	12,097			13,085
Total income	18,736			25,935
Share of income (losses) from operating limited partnerships	(216,176		)	(428,223		)
Expenses
Professional fees	45,179			58,291
Partnership management fee	425,920			465,239
Amortization	11,312			11,312
Impairment loss	287,463			199,703
General and administrative expenses	44,180			45,859
	814,054			780,404
NET INCOME (LOSS)	$	(1,011,494	)	$	(1,182,692	)
Net income (loss) allocated to general partner	$	(10,115	)	$	(11,827	)
Net income (loss) allocated to limited partners	$	(1,001,379	)	$	(1,170,865	)
Net income (loss) per BAC	$	(0.20	)	$	(0.23	)

(continued)

F-14

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 18
	2008			2007
Income
Interest income	$	2,934		$	2,680
Other income	4,514			70,182
Total income	7,448			72,862
Share of income (losses) from operating limited partnerships	(92,945		)	(227,177		)
Expenses
Professional fees	37,765			52,884
Partnership management fee	368,091			354,725
Amortization	8,391			8,391
Impairment loss	—			404,990
General and administrative expenses	34,195			34,098
	448,442			855,088
NET INCOME (LOSS)	$	(533,939	)	$	(1,009,403	)
Net income (loss) allocated to general partner	$	(5,339	)	$	(10,094	)
Net income (loss) allocated to limited partners	$	(528,600	)	$	(999,309	)
Net income (loss) per BAC	$	(0.15	)	$	(0.28	)

(continued)

F-15

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 19
	2008			2007
Income
Interest income	$	4,104		$	3,854
Other income	1,050			3,714
Total income	5,154			7,568
Share of income (losses) from operating limited partnerships	(356,627		)	(800,814		)
Expenses
Professional fees	42,228			36,478
Partnership management fee	369,572			369,600
Amortization	14,429			14,429
Impairment loss	—			760,383
General and administrative expenses	36,643			36,520
	462,872			1,217,410
NET INCOME (LOSS)	$	(814,345	)	$	(2,010,656	)
Net income (loss) allocated to general partner	$	(8,143	)	$	(20,107	)
Net income (loss) allocated to limited partners	$	(806,202	)	$	(1,990,549	)
Net income (loss) per BAC	$	(0.20	)	$	(0.49	)

See notes to financial statements

F-16

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

Years ended March 31, 2008 and 2007

	Limited			General
Total	partners			partner			Total
Partners’ capital (deficit), March 31, 2006	$	(10,077,051	)	$	(2,009,201	)	$	(12,086,252	)
Distributions to partners	(1,805,924		)	—			(1,805,924		)
Net loss	(5,136,240		)	(51,881		)	(5,188,121		)
Partners’ capital (deficit), March 31, 2007	$	(17,019,215	)	$	(2,061,082	)	$	(19,080,297	)
Net loss	(4,133,713		)	(41,754		)	(4,175,467		)
Partners’ capital (deficit), March 31, 2008	$	(21,152,928	)	$	(2,102,836	)	$	(23,255,764	)

(continued)

F-17

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

Years ended March 31, 2008 and 2007

	Limited			General
Series 15	partners			partner			Total
Partners’ capital (deficit), March 31, 2006	$	(3,230,009	)	$	(367,571	)	$	(3,597,580	)
Distributions to partners	(940,481		)	—			(940,481		)
Net income	511,404			5,166			516,570
Partners’ capital (deficit), March 31, 2007	$	(3,659,086	)	$	(362,405	)	$	(4,021,491	)
Net loss	(520,176		)	(5,254		)	(525,430		)
Partners’ capital (deficit), March 31, 2008	$	(4,179,262	)	$	(367,659	)	$	(4,546,921	)

(continued)

F-18

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

Years ended March 31, 2008 and 2007

	Limited			General
Series 16	partners			partner			Total
Partners’ capital (deficit), March 31, 2006	$	(3,158,172	)	$	(503,223	)	$	(3,661,395	)
Net loss	(1,486,921		)	(15,019		)	(1,501,940		)
Partners’ capital (deficit), March 31, 2007	$	(4,645,093	)	$	(518,242	)	$	(5,163,335	)
Net loss	(1,277,356		)	(12,903		)	(1,290,259		)
Partners’ capital (deficit), March 31, 2008	$	(5,922,449	)	$	(531,145	)	$	(6,453,594	)

(continued)

F-19

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

Years ended March 31, 2008 and 2007

	Limited			General
Series 17	partners			partner			Total
Partners’ capital (deficit), March 31, 2006	$	(2,350,393	)	$	(457,511	)	$	(2,807,904	)
Distributions to partners	(865,443		)	—			(865,443		)
Net loss	(1,170,865		)	(11,827		)	(1,182,692		)
Partners’ capital (deficit), March 31, 2007	$	(4,386,701	)	$	(469,338	)	$	(4,856,039	)
Net loss	(1,001,379		)	(10,115		)	(1,011,494		)
Partners’ capital (deficit), March 31, 2008	$	(5,388,080	)	$	(479,453	)	$	(5,867,533	)

(continued)

F-20

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

Years ended March 31, 2008 and 2007

	Limited			General
Series 18	partners			partner			Total
Partners’ capital (deficit), March 31, 2006	$	(2,331,641	)	$	(336,913	)	$	(2,668,554	)
Net loss	(999,309		)	(10,094		)	(1,009,403		)
Partners’ capital (deficit), March 31, 2007	$	(3,330,950	)	$	(347,007	)	$	(3,677,957	)
Net loss	(528,600		)	(5,339		)	(533,939		)
Partners’ capital (deficit), March 31, 2008	$	(3,859,550	)	$	(352,346	)	$	(4,211,896	)

(continued)

F-21

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT) - CONTINUED

Years ended March 31, 2008 and 2007

	Limited			General
Series 19	partners			partner			Total
Partners’ capital (deficit), March 31, 2006	$	993,164		$	(343,983	)	$	649,181
Net loss	(1,990,549		)	(20,107		)	(2,010,656		)
Partners’ capital (deficit), March 31, 2007	$	(997,385	)	$	(364,090	)	$	(1,361,475	)
Net loss	(806,202		)	(8,143		)	(814,345		)
Partners’ capital (deficit), March 31, 2008	$	(1,803,587	)	$	(372,233	)	$	(2,175,820	)

See notes to financial statements

F-22

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS

Years ended March 31, 2008 and 2007

	Total
	2008			2007
Cash flows from operating activities
Net loss	$	(4,175,467	)	$	(5,188,121	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships	1,376,172			1,280,294
Distributions received from operating limited partnerships	7,410			30,836
Impairment loss	293,550			1,365,076
Amortization	52,385			52,384
Changes in assets and liabilities
Other assets	(7,340		)	(7,126		)
Accounts payable and accrued expenses	16,905			(40,266		)
Accounts payable - affiliates	1,187,067			1,696,733
Net cash provided by (used in) operating activities	(1,249,318		)	(810,190		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	(4,208		)	—
Proceeds from disposition of operating limited partnerships	80,903			1,271,354
Net cash provided by (used in) investing activities	76,695			1,271,354
Cash flows from financing activities
Distributions to partners	—			(1,805,924		)
Net cash provided by (used in) financing activity	—			(1,805,924		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,172,623		)	(1,344,760		)
Cash and cash equivalents, beginning	1,947,702			3,292,462
Cash and cash equivalents, end	$	775,079		$	1,947,702

(continued)

F-23

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 15
	2008			2007
Cash flows from operating activities
Net income (loss)	$	(525,430	)	$	516,570
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of income (losses) from operating limited partnerships	65,374			(1,006,045		)
Distributions received from operating limited partnerships	—			—
Impairment loss	6,087			—
Amortization	7,653			7,652
Changes in assets and liabilities
Other assets	(7,340		)	(4,365		)
Accounts payable and accrued expenses	15,381			—
Accounts payable - affiliates	(783,229		)	260,409
Net cash provided by (used in) operating activities	(1,221,504		)	(225,779		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	(4,208		)	—
Proceeds from disposition of operating limited partnerships	80,903			1,249,013
Net cash provided by (used in) investing activities	76,695			1,249,013
Cash flows from financing activities
Distributions to partners	—			(940,481		)
Net cash provided by (used in) financing activity	—			(940,481		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,144,809		)	82,753
Cash and cash equivalents, beginning	1,345,224			1,262,471
Cash and cash equivalents, end	$	200,415		$	1,345,224

(continued)

F-24

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 16
	2008			2007
Cash flows from operating activities
Net loss	$	(1,290,259	)	$	(1,501,940	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships	645,050			830,125
Distributions received from operating limited partnerships	3,797			8,385
Impairment loss	—			—
Amortization	10,600			10,600
Changes in assets and liabilities
Other assets	—			(6,175		)
Accounts payable and accrued expenses	381			(40,266		)
Accounts payable - affiliates	637,927			301,865
Net cash provided by (used in) operating activities	7,496			(397,406		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	—			—
Proceeds from disposition of operating limited partnerships	—			15,021
Net cash provided by (used in) investing activities	—			15,021
Cash flows from financing activities
Distributions to partners	—			—
Net cash provided by (used in) financing activity	—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	7,496			(382,385		)
Cash and cash equivalents, beginning	190,149			572,534
Cash and cash equivalents, end	$	197,645		$	190,149

(continued)

F-25

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 17
	2008			2007
Cash flows from operating activities
Net loss	$	(1,011,494	)	$	(1,182,692	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships	216,176			428,223
Distributions received from operating limited partnerships	3,612			4,240
Impairment loss	287,463			199,703
Amortization	11,312			11,312
Changes in assets and liabilities
Other assets	—			5,181
Accounts payable and accrued expenses	381			—
Accounts payable - affiliates	517,260			319,920
Net cash provided by (used in) operating activities	24,710			(214,113		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	—			—
Proceeds from disposition of operating limited partnerships	—			7,320
Net cash provided by (used in) investing activities	—			7,320
Cash flows from financing activities
Distributions to partners	—			(865,443		)
Net cash provided by (used in) financing activity	—			(865,443		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	24,710			(1,072,236		)
Cash and cash equivalents, beginning	165,814			1,238,050
Cash and cash equivalents, end	$	190,524		$	165,814

(continued)

F-26

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 18
	2008			2007
Cash flows from operating activities
Net loss	$	(533,939	)	$	(1,009,403	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships	92,945			227,177
Distributions received from (refunded to) operating limited partnerships	1			933
Impairment loss	—			404,990
Amortization	8,391			8,391
Changes in assets and liabilities
Other assets	—			—
Accounts payable and accrued expenses	381			—
Accounts payable - affiliates	401,554			403,191
Net cash provided by (used in) operating activities	(30,667		)	35,279
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	—			—
Proceeds from disposition of operating limited partnerships	—			—
Net cash provided by (used in) investing activities	—			—
Cash flows from financing activities
Distributions to partners	—			—
Net cash provided by (used in) financing activity	—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(30,667		)	35,279
Cash and cash equivalents, beginning	107,343			72,064
Cash and cash equivalents, end	$	76,676		$	107,343

(continued)

F-27

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2008 and 2007

	Series 19
	2008			2007
Cash flows from operating activities
Net loss	$	(814,345	)	$	(2,010,656	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of losses from operating limited partnerships	356,627			800,814
Distributions received from operating limited partnerships	—			17,278
Impairment loss	—			760,383
Amortization	14,429			14,429
Changes in assets and liabilities
Other assets	—			(1,767		)
Accounts payable and accrued expenses	381			—
Accounts payable - affiliates	413,555			411,348
Net cash provided by (used in) operating activities	(29,353		)	(8,171		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	—			—
Proceeds from disposition of operating limited partnerships	—			—
Net cash provided by (used in) investing activities	—			—
Cash flows from financing activities
Distributions to partners	—			—
Net cash provided by (used in) financing activity	—			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(29,353		)	(8,171		)
Cash and cash equivalents, beginning	139,172			147,343
Cash and cash equivalents, end	$	109,819		$	139,172

(continued)

F-28

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS

March 31, 2008 and 2007

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Boston Capital Tax Credit Fund III L.P. (the “partnership” or “fund”) was formed under the laws of the State of Delaware on September 19, 1991, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating limited partnerships which were organized to acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated apartment complexes which qualified for the Low-Income Housing Tax Credit established by the Tax Reform Act of 1986.  Accordingly, the apartment complexes are restricted as to rent charges and operating methods.  Certain of the apartment complexes also qualified for the Historic Rehabilitation Tax Credit for their rehabilitation of a certified historic structure and are subject to the provisions of the Internal Revenue Code relating to the Rehabilitation Investment Credit.  The general partner of the fund is Boston Capital Associates III L.P. and the limited partner is BCTC III Assignor Corp. (the “assignor limited partner”).

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 originally registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series.  An additional 2,000,000 BACs at $10 per BAC were registered for sale to the public in one or more series on September 4, 1994.  BACs sold in bulk were offered to investors at a reduced cost per BAC.

The BACs issued and outstanding in each series at March 31, 2008 and 2007 are as follows:

Series 15	3,870,500
Series 16	5,429,402
Series 17	5,000,000
Series 18	3,616,200
Series 19	4,080,000
Total	21,996,102

In accordance with the limited partnership agreements, profits, losses, and cash flow (subject to certain priority allocations and distributions) and tax credits are allocated 99% to the assignees and 1% to the general partner.

F-29

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships

The fund accounts for its investments in operating limited partnerships using the equity method, whereby the fund adjusts its investment cost for its share of each operating limited partnership’s results of operations and for any distributions received or accrued.  However, the fund recognizes the individual operating limited partnership’s losses only to the extent that the fund’s share of losses of the operating limited partnerships does not exceed the carrying amount of its investment and its advances to operating limited partnerships.  Unrecognized losses are suspended and offset against future individual operating limited partnership income.

Under Emerging Issues Task Force (EITF) 98-13, after the investment account is reduced to zero, receivables due from the operating limited partnerships are decreased by the fund’s share of losses and, accordingly, a valuation allowance is recorded against the receivables.  Accordingly, the partnership recorded a valuation allowance as follows:

	2008		2007
Series 15	$	36,930	$	169,007
Series 16	14,193		14,193
Series 17	85,401		85,401
Series 18	57,536		57,536
Series 19	2,921		2,921
	$	196,981	$	329,058

A loss in value of an investment in an operating limited partnership other than a temporary decline is recorded as an impairment loss.  Impairment is measured by comparing the investment carrying amount to the sum of the total amount of the remaining tax credits allocated to the fund and the estimated residual value of the investment.  In addition, deferred acquisition costs related to each investment are evaluated for impairment when an impairment loss has reduced an investment balance to zero.  Accordingly, the partnership recorded an impairment loss of $293,550 and $1,365,076 during the years ended March 31, 2008 and 2007, respectively.

F-30

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

Capital contributions to operating limited partnerships are adjusted by tax credit adjusters.  Tax credit adjusters are defined as adjustments to operating limited partnership capital contributions due to reductions in actual tax credits from those originally projected.  The fund records tax credit adjusters as a reduction in investment in operating limited partnerships and capital contributions payable.

The operating limited partnerships maintain their financial statements based on a calendar year and the fund utilizes a March 31 year-end.  The fund records income and losses from the operating limited partnerships on a calendar year basis which is not materially different from income and losses generated if the operating limited partnerships utilized a March 31 year-end.

The fund records capital contributions payable to the operating limited partnerships once there is a binding obligation to fund a specified amount.  The operating limited partnerships record capital contributions from the fund when received.

The fund records certain acquisition costs as an increase in its investment in operating limited partnerships.  Certain operating limited partnerships have not recorded the acquisition costs as a capital contribution from the fund.  These differences are shown as reconciling items in note C.

As of March 31, 2004, the partnership adopted FASB Interpretation No. 46 - Revised (“FIN 46R”), “Consolidation of Variable Interest Entities.”  FIN 46R provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity (“VIE”) in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity’s expected losses, the majority of the expected residual returns, or both.

F-31

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Investments in Operating Limited Partnerships (Continued)

Based on the guidance of FIN 46R, the operating limited partnerships in which the partnership invests in meet the definition of a VIE.  However, management does not consolidate the partnership’s interests in these VIEs under FIN 46R, as it is not considered to be the primary beneficiary.  The partnership currently records the amount of its investment in these partnerships as an asset in the balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in the financial statements.

The partnership’s balance in investment in operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss.  The partnership’s exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.

Deferred Acquisition Costs

Acquisition costs were deferred until March 31, 1995.  As of April 1, 1995, the fund reallocated certain acquisition costs, common to all Series, based on a percentage of equity raised to each Series.  Acquisition costs are being amortized on the straight-line method starting April 1, 1995, over 27.5 years (330 months).

Accumulated amortization as of March 31, 2008 and 2007 is as follows:

	2008		2007
Series 15	$	178,212	$	170,559
Series 16	309,729		299,129
Series 17	269,377		258,065
Series 18	193,270		184,879
Series 19	186,077		171,648
	$	1,136,665	$	1,084,280

F-32

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Deferred Acquisition Costs (Continued)

The amortization of the deferred acquisition costs for each of the ensuing 5 years through March 31, 2013 is estimated to be $52,385 per year.

Income Taxes

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.

Cash Equivalents

Cash equivalents include repurchase agreements and money market accounts having original maturities at date of acquisition of three months or less.  The carrying value approximates fair value because of the short maturity of these instruments.

F-33

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE A - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fiscal Year

For financial reporting purposes, the fund uses a March 31 year-end, whereas for income tax reporting purposes, the fund uses a calendar year.  The operating limited partnerships use a calendar year for both financial and income tax reporting.

Net Income (Loss) per Beneficial Assignee Certificate

Net income (loss) per beneficial assignee partnership unit is calculated based upon the number of units outstanding during the year.  The number of units in each series at March 31, 2008 and 2007 are as follows:

Series 15	3,870,500
Series 16	5,429,402
Series 17	5,000,000
Series 18	3,616,200
Series 19	4,080,000
	21,996,102

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

F-34

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE B - RELATED PARTY TRANSACTIONS

During the years ended March 31, 2008 and 2007, the fund entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., Boston Capital Services, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership, as follows:

Boston Capital Asset Management Limited Partnership is entitled to an annual fund management fee based on .5% of the aggregate cost of all apartment complexes acquired by the operating limited partnerships, less the amount of certain partnership management and reporting fees paid or payable by the operating limited partnerships.  The aggregate cost is comprised of the capital contributions made by each series to the operating limited partnerships and 99% of the permanent financing at the operating limited partnership level.  The fee is payable without interest as sufficient funds became available from sales or refinancing proceeds from operating limited partnerships.

The annual partnership management fee charged to operations during the years ended March 31, 2008 and 2007 is as follows:

	2008		2007
Series 15	$	441,771	$	494,705
Series 16	635,316		649,788
Series 17	517,260		518,500
Series 18	381,948		381,948
Series 19	411,348		411,348
	$	2,387,643	$	2,456,289

F-35

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

The reporting fees paid by the Operating Partnerships for the years ended March 31, 2008 and 2007 are as follows:

	2008		2007
Series 15	$	78,883	$	101,554
Series 16	88,663		93,837
Series 17	91,340		53,261
Series 18	13,857		27,223
Series 19	41,776		41,748
	$	314,519	$	317,623

The partnership management fees paid for the years ended March 31, 2008 and 2007 are as follows:

	2008		2007
Series 15	$	1,225,000	$	234,296
Series 16	—		347,923
Series 17	—		198,581
Series 18	—		—
Series 19	—		—
	$	1,225,000	$	780,800

F-36

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

An affiliate of the general partner of the Partnership advanced funds to pay some operating expenses of the Partnership, and to make advances and/or loans to Operating Partnerships. These advances are included in Accounts payable-affiliates. The total advances from the affiliate of the general partner to the Operating Partnerships for the years ended March 31, 2008 and 2007 are as follows:

	2008		2007
Series 15	$	—	$	—
Series 16	2,611		—
Series 17	635,362		635,362
Series 18	128,783		109,177
Series 19	2,207		—
	$	768,963	$	744,539

All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership’s interests in Operating Partnerships.

General and administrative expenses incurred by Boston Capital Partners, Inc., Boston Capital Holdings Limited Partnership and Boston Capital Asset Management Limited Partnership during the years ended March 31, 2008 and 2007 charged to each series’ operations are as follows:

	2008		2007
Series 15	$	24,349	$	27,017
Series 16	25,976		28,902
Series 17	23,239		25,455
Series 18	19,606		21,244
Series 19	19,365		20,752
	$	112,535	$	123,370

The Partnership had previously recorded and paid BCAMLP in connection with the disposition of certain Operating Partnerships certain amounts which were incorrectly referred to as sales preparation fees. The payments were actually for reimbursement of overhead and salary expenses incurred by Boston Capital and its Affiliates in connection with the disposition of three Operating Partnerships.

F-37

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE B - RELATED PARTY TRANSACTIONS (Continued)

Accounts payable - affiliates at March 31, 2008 and 2007 represents fund management fees and operating limited partnership advances which are payable to Boston Capital Asset Management Limited Partnership.  The carrying value of the accounts payable - affiliates approximates fair value.

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At March 31, 2008 and 2007, the fund has limited partnership interests in operating limited partnerships which own or are constructing operating apartment complexes.  The number of operating limited partnerships in which the fund has limited partnership interests at March 31, 2008 and 2007 by series are as follows:

	2008	2007
Series 15	58	63
Series 16	61	61
Series 17	47	47
Series 18	34	34
Series 19	26	26
	226	231

F-38

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

During the year end March 31, 2008 the partnership disposed of five operating limited partnerships and received additional proceeds from one operating limited partnership which was disposed of in the prior year. A summary of the dispositions by Series for March 31, 2008 is as follows:

	Operating Partnership Interest Transferred	Sale of Underlying Operating Partnership	Partnership Proceeds from Disposition *		Gain/(Loss) on Disposition
Series 15	5	—	$	80,903	$	80,903
Series 16	—	—	—		—
Series 17	—	—	—		—
Series 18	—	—	—		—
Series 19	—	—	—		—
Total	5	—	$	80,903	$	80,903

* Fund proceeds from disposition include additional proceeds received for a sale of an Operating Partnership recorded as of March 31, 2007, of $7,188 for Series 15.

During the year end March 31, 2007 the partnership disposed of three operating limited partnerships, sold a portion of its interest in one operating limited partnership, and received additional proceeds from one operating limited partnerships which was disposed of in the prior year.  A summary of the dispositions by Series for March 31, 2007 is as follows:

	Operating Partnership Interest Transferred	Sale of Underlying Operating Partnership	Partnership Proceeds from Disposition		Gain/(Loss) on Disposition
Series 15	2	1	$	1,249,013	$	1,185,775
Series 16	1	—	15,021		15,021
Series 17	—	—	7,320		—
Series 18	—	—	—		—
Series 19	—	—	—		—
Total	3	1	$	1,271,354	$	1,200,796

F-39

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

Under the terms of the fund’s investment in each operating limited partnership, the fund is required to make capital contributions to the operating limited partnerships.  These contributions are payable in installments over several years upon each operating limited partnership achieving specified levels of construction and/or operations.

The contributions payable to operating limited partnerships at March 31, 2008 and 2007 by series are as follows:

	2008		2007
Series 15	$	—	$	4,208
Series 16	71,862		71,862
Series 17	67,895		67,895
Series 18	18,554		18,554
Series 19	—		—
	$	158,311	$	162,519

F-40

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2008 are summarized as follows:

	Total		Series 15			Series 16
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	141,108,877		$	18,874,532		$	35,385,389
Acquisition costs of operating limited partnerships	17,337,084		2,080,049			4,154,447
Syndication costs from operating limited partnerships	(56,632	)	—			—
Cumulative distributions from operating limited partnerships	(1,272,350	)	(17,967		)	(495,504		)
Cumulative impairment loss in investment in operating limited partnerships	(31,781,950	)	(1,432,911		)	(8,151,746		)
Cumulative losses from operating limited partnerships	(123,674,025	)	(19,294,143		)	(30,414,568		)
Investments in operating limited partnerships per balance sheets	1,661,004		209,560			478,018
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2008 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2007 (see note A)	(1,074,310	)	(128,731		)	(113,965		)
The fund has recorded acquisition costs at March 31, 2008 which have not been recorded in the net assets of the operating limited partnerships (see note A)	(2,670,520	)	(370,433		)	(582,648		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)	2,082,345		358,789			—

F-41

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Total			Series 15			Series 16
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)	(44,267,280		)	(11,454,894		)	(13,298,206		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)	722,457			163,301			151,497
Cumulative impairment loss in investment in operating limited partnerships	31,781,950			1,432,911			8,151,746
Other	692,997			(12,122		)	699,202
Equity per operating limited partnerships’ combined financial statements	$	(11,071,357	)	$	(9,801,619	)	$	(4,514,356	)

F-42

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2008 are summarized as follows:

	Series 17			Series 18			Series 19
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	30,916,846		$	26,416,735		$	29,515,375
Acquisition costs of operating limited partnerships	3,782,254			3,587,530			3,732,804
Syndication costs from operating limited partnerships	—			(56,632		)	—
Cumulative distributions from operating limited partnerships	(134,913		)	(137,878		)	(486,088		)
Cumulative impairment loss in investment in operating limited partnerships	(6,142,671		)	(5,926,733		)	(10,127,889		)
Cumulative losses from operating limited partnerships	(27,641,773		)	(23,883,022		)	(22,440,519		)
Investments in operating limited partnerships per balance sheets	779,743			—			193,683
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2008 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2007 (see note A)	(710,224		)	(61,783		)	(59,607		)
The fund has recorded acquisition costs at March 31, 2008 which have not been recorded in the net assets of the operating limited partnerships (see note A)	(695,315		)	(387,564		)	(634,560		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)	752,440			617,683			353,433

F-43

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 17			Series 18			Series 19
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)	(7,194,178		)	(7,452,804		)	(4,867,198		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)	59,201			105,595			242,863
Cumulative impairment loss in investment in operating limited partnerships	6,142,671			5,926,733			10,127,889
Other	(20,203		)	5,002			21,118
Equity per operating limited partnerships’ combined financial statements	$	(885,865	)	$	(1,247,138	)	$	5,377,621

F-44

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2007 are summarized as follows:

	Total			Series 15			Series 16
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	142,450,069		$	20,222,979		$	35,385,389
Acquisition costs of operating limited partnerships	17,360,869			2,103,832			4,154,447
Syndication costs from operating limited partnerships	(56,632		)	—			—
Cumulative distributions from operating limited partnerships	(1,263,654		)	(16,682		)	(491,707		)
Cumulative impairment loss in investment in operating limited partnerships	(31,880,319		)	(1,902,745		)	(8,134,883		)
Cumulative losses from operating limited partnerships	(123,191,294		)	(20,045,460		)	(29,786,381		)
Investments in operating limited partnerships per balance sheets	3,419,039			361,924			1,126,865
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2007 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2006 (see note A)	(1,078,516		)	(132,937		)	(113,965		)
The fund has recorded acquisition costs at March 31, 2007 which have not been recorded in the net assets of the operating limited partnerships (see note A)	(2,683,933		)	(383,846		)	(582,648		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)	2,146,189			422,633			—

F-45

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Total		Series 15			Series 16
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)	(37,868,729	)	(11,800,839		)	(11,145,028		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)	738,867		179,711			151,497
Cumulative impairment loss in investment in operating limited partnerships	31,918,158		1,902,745			8,134,883
Other	689,853		(15,397		)	683,314
Equity per operating limited partnerships’ combined financial statements	(2,719,072	)	$	(9,466,006	)	$	(1,745,082	)

F-46

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2007 are summarized as follows:

	Series 17			Series 18			Series 19
Capital contributions paid and to be paid to operating limited partnerships, net of tax credit adjusters	$	30,909,526		$	26,416,735		$	29,515,440
Acquisition costs of operating limited partnerships	3,782,255			3,587,531			3,732,804
Syndication costs from operating limited partnerships	—			(56,632		)	—
Cumulative distributions from operating limited partnerships	(131,300		)	(137,877		)	(486,088		)
Cumulative impairment loss in investment in operating limited partnerships	(5,822,328		)	(5,926,733		)	(10,093,630		)
Cumulative losses from operating limited partnerships	(27,451,159		)	(23,790,078		)	(22,118,216		)
Investments in operating limited partnerships per balance sheets	1,286,994			92,946			550,310
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2007 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2006 (see note A)	(710,224		)	(61,783		)	(59,607		)
The fund has recorded acquisition costs at March 31, 2007 which have not been recorded in the net assets of the operating limited partnerships (see note A)	(695,315		)	(387,564		)	(634,560		)
Cumulative losses from operating limited partnerships for the three months ended March 31, 1993 which the operating limited partnerships have not included in their capital as of December 31, 1992 due to different year ends (see note A)	752,440			617,683			353,433

F-47

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

	Series 17			Series 18		Series 19
Equity in loss of operating limited partnerships not recognizable under the equity method of accounting (see note A)	(5,912,028		)	(5,214,009	)	(3,796,825		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)	59,201			105,595		242,863
Cumulative impairment loss in investment in operating limited partnerships	5,855,208			5,926,733		10,098,589
Other	(7,974		)	6,394		23,516
Equity per operating limited partnerships’ combined financial statements	$	628,302		1,085,995		$	6,777,719

F-48

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2007 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS
Buildings and improvements, net of accumulated depreciation	$	279,395,017		$	42,129,283		$	68,126,667
Land	24,517,558			3,832,412			5,001,235
Other assets	39,120,794			7,495,446			10,079,310
	$	343,033,369		$	53,457,141		$	83,207,212
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	308,676,066		$	60,332,156		$	73,046,516
Accounts payable and accrued expenses	15,678,506			543,443			7,888,661
Other liabilities	31,442,770			2,840,403			4,153,857
	355,797,342			63,716,002			85,089,034
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.	(11,071,357		)	(9,801,619		)	(4,514,356		)
Other partners	(1,692,616		)	(457,242		)	2,632,534
	(12,763,973		)	(10,258,861		)	(1,881,822		)
	$	343,033,369		$	53,457,141		$	83,207,212

F-49

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2007 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS
Buildings and improvements, net of accumulated depreciation	$	71,199,566		$	41,760,321		$	56,179,180
Land	6,506,051			3,336,533			5,841,327
Other assets	8,913,649			8,223,252			4,409,137
	$	86,619,266		$	53,320,106		$	66,429,644
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	80,393,578		$	43,420,214		$	51,483,602
Accounts payable and accrued expenses	2,055,863			2,804,523			2,386,016
Other liabilities	9,704,653			7,727,696			7,016,161
	92,154,094			53,952,433			60,885,779
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.	(885,865		)	(1,247,138		)	5,377,621
Other partners	(4,648,963		)	614,811			166,244
	(5,534,828		)	(632,327		)	5,543,865
	$	86,619,266		$	53,320,106		$	66,429,644

F-50

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2006 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS
Buildings and improvements, net of accumulated depreciation	$	298,142,057		$	47,247,271		$	71,416,545
Land	24,949,002			4,226,094			5,020,765
Other assets	37,239,380			9,060,861			9,690,421
	$	360,330,439		$	60,534,226		$	86,127,731
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	314,708,386		$	65,849,535		$	72,792,033
Accounts payable and accrued expenses	15,356,280			700,217			6,352,475
Other liabilities	32,276,672			3,526,284			5,953,276
	362,341,338			70,076,036			85,097,784
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.	(2,719,071		)	(9,466,006		)	(1,745,082		)
Other partners	708,172			(75,804		)	2,775,029
	(2,010,899		)	(9,541,810		)	1,029,947
	$	360,330,439		$	60,534,226		$	86,127,731

F-51

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2006 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18		Series 19
ASSETS
Buildings and improvements, net of accumulated depreciation	$	74,419,890		$	46,842,715	$	58,215,636
Land	6,497,315			3,363,433		5,841,395
Other assets	8,998,113			5,404,593		4,085,392
	$	89,915,318		$	55,610,741	$	68,142,423
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	80,778,638		$	42,934,858	$	52,353,322
Accounts payable and accrued expenses	2,025,202			3,645,530		2,632,856
Other liabilities	10,023,905			6,999,004		5,774,203
	92,827,745			53,579,392		60,760,381
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.	628,302			1,085,996		6,777,719
Other partners	(3,540,729		)	945,353		604,323
	(2,912,427		)	2,031,349		7,382,042
	$	89,915,318		$	55,610,741	$	68,142,423

F-52

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2007 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	59,969,517		$	9,908,955		$	13,896,179
Interest and other	2,758,558			352,115			634,786
	62,728,075			10,261,070			14,530,965
Expenses
Interest	14,115,999			1,875,514			2,804,632
Depreciation and amortization	16,634,119			2,839,503			4,082,667
Taxes and insurance	8,525,882			1,211,916			2,026,563
Repairs and maintenance	12,792,136			2,190,814			3,354,114
Operating expenses	21,215,849			3,693,121			4,769,773
Other expenses	1,002,115			92,687			347,415
	74,286,100			11,903,555			17,385,164
NET LOSS	$	(11,558,025	)	$	(1,642,485	)	$	(2,854,199	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(9,559,338	)	$	(1,483,764	)	$	(2,955,617	)
Net income (loss) allocated to other partners	$	(1,998,687	)	$	(158,721	)	$	101,418

*Amounts include $1,337,487, $2,310,567, $1,307,635, $2,018,881, and $1,127,692 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-53

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2007 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	15,953,551		$	8,126,287		$	12,084,545
Interest and other	636,509			404,267			730,881
	16,590,060			8,530,554			12,815,426
Expenses
Interest	3,942,286			2,028,509			3,465,058
Depreciation and amortization	4,021,535			2,673,307			3,017,107
Taxes and insurance	2,167,489			1,290,210			1,829,704
Repairs and maintenance	3,571,627			1,824,156			1,851,425
Operating expenses	5,414,629			3,000,412			4,337,914
Other expenses	71,702			344,965			145,346
	19,189,268			11,161,559			14,646,554
NET LOSS	$	(2,599,208	)	$	(2,631,005	)	$	(1,831,128	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(1,523,811	)	$	(2,111,827	)	$	(1,484,319	)
Net income (loss) allocated to other partners	$	(1,075,397	)	$	(519,178	)	$	(346,809	)

*Amounts include $1,337,487, $2,310,567, $1,307,635, $2,018,881, and $1,127,692 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-54

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2006 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total				Series 15			Series 16
Revenue
Rental	$		58,875,372		$	10,385,426		$	13,183,737
Interest and other	2,480,868				352,578			522,327
	61,356,240				10,738,004			13,706,064
Expenses
Interest	14,519,066				2,133,821			2,767,142
Depreciation and amortization	16,773,001				3,027,505			4,072,542
Taxes and insurance	8,713,562				1,416,420			2,016,633
Repairs and maintenance	12,117,243				2,177,954			2,703,304
Operating expenses	20,677,354				3,547,357			4,780,549
Other expenses	4,584,892				404,447			2,105,022
	77,385,118				12,707,504			18,445,192
NET LOSS	$		(16,028,878	)	$	(1,969,500	)	$	(4,739,128	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(14,323,629		)	$	(1,831,371	)	$	(4,657,480	)
Net loss allocated to other partners	$		(1,705,249	)	$	(138,129	)	$	(81,648	)

*Amounts include $1,661,641, $3,818,509, $1,605,973, $2,090,617, and $2,695,033 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-55

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized statements of operations of the operating limited partnerships for the year ended December 31, 2006 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18				Series 19
Revenue
Rental	$	15,477,385		$		8,091,504		$	11,737,320
Interest and other	621,849			452,749				531,365
	16,099,234			8,544,253				12,268,685
Expenses
Interest	3,864,164			2,222,943				3,530,996
Depreciation and amortization	4,007,790			2,677,955				2,987,209
Taxes and insurance	2,189,002			1,270,761				1,820,746
Repairs and maintenance	3,518,007			1,786,476				1,931,502
Operating expenses	5,239,042			3,000,433				4,109,973
Other expenses	103,085			240,794				1,731,544
	18,921,090			11,199,362				16,111,970
NET LOSS	$	(2,821,856	)	$		(2,655,109	)	$	(3,843,285	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(2,022,904	)	$	(2,317,794		)	$	(3,494,080	)
Net loss allocated to other partners	$	(798,952	)	$		(337,315	)	$	(349,205	)

*Amounts include $1,661,641, $3,818,509, $1,605,973, $2,090,617, and $2,695,033 for Series 15, Series 16, Series 17, Series 18 and Series 19, respectively, of loss not recognized under the equity method of accounting as described in note A.

F-56

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE D - OTHER ASSETS

Other assets include cash advanced to operating limited partnerships at March 31, 2008 and 2007, some of which is to be applied to capital contributions payable when certain criteria have been met.  The advances at March 31, 2008 and 2007 by series are as follows:

	2008		2007
Series 15	$	—	$	—
Series 16	—		—
Series 17	30,000		30,000
Series 18	5,000		5,000
Series 19	—		—
	$	35,000	$	35,000

F-57

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE E - RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN

For income tax purposes, the fund reports using a December 31 year-end.  The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2008 is reconciled as follows:

	Total			Series 15			Series 16
Net loss for financial reporting purposes	$	(4,175,467	)	$	(525,430	)	$	(1,290,259	)
Operating limited partnership rents received in advance	(16,566		)	(11,252		)	(5,050		)
Accrued fund management fees not deducted (deducted) for tax purposes	1,162,643			(783,229		)	635,316
Other	280,629			(55,845		)	786,849
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(8,102,263		)	(1,337,487		)	(2,310,567		)
Impairment loss in investment in operating limited partnership not deductible for tax purposes	293,550			6,087			—
Excess of tax depreciation over book depreciation on operating limited partnership assets	(992,418		)	(299,908		)	(216,695		)
Difference due to fiscal year for book purposes and calendar year for tax purposes	2,256,945			2,438,981			(105,593		)
Loss for tax return purposes, year ended December 31, 2007	$	(9,292,947	)	$	(568,083	)	$	(2,505,999	)

F-58

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE E - RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end.  The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2008 is reconciled as follows:

	Series 17			Series 18			Series 19
Net loss for financial reporting purposes	$	(1,011,494	)	$	(533,939	)	$	(814,345	)
Operating limited partnership rents received in advance	—			(264		)	—
Accrued fund management fees not deducted (deducted) for tax purposes	517,260			381,948			411,348
Other	(165,125		)	73,396			(358,646		)
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(1,307,635		)	(2,018,882		)	(1,127,692		)
Impairment loss in investment in operating limited partnership not deductible for tax purposes	287,463			—			—
Excess of tax depreciation over book depreciation on operating limited partnership assets	(110,725		)	(142,398		)	(222,692		)
Difference due to fiscal year for book purposes and calendar year for tax purposes	(13,739		)	(18,827		)	(43,877		)
Loss for tax return purposes, year ended December 31, 2007	$	(1,803,995	)	$	(2,258,966	)	$	(2,155,904	)

F-59

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE E - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (LOSS) TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end.  The fund’s net income (loss) for financial reporting and tax return purposes for the year ended March 31, 2007 is reconciled as follows:

	Total			Series 15			Series 16
Net income (loss) for financial reporting purposes	$	(5,188,121	)	$	516,570		$	(1,501,940	)
Operating limited partnership rents received in advance	(5,067		)	(2,271		)	598
Accrued fund management fees not deducted (deducted) for tax purposes	1,696,733			260,409			301,865
Other	4,765,685			217,652			2,037,702
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(11,871,773		)	(1,661,641		)	(3,818,509		)
Impairment loss in investment in operating limited partnership not deductible for tax purposes	1,365,076			—			—
Excess of tax depreciation over book depreciation on operating limited partnership assets	(1,511,657		)	(295,391		)	(342,288		)
Difference due to fiscal year for book purposes and calendar year for tax purposes	(1,281,684		)	(1,159,999		)	121,317
Loss for tax return purposes, year ended December 31, 2006	$	(12,030,808	)	$	(2,124,671	)	$	(3,201,255	)

F-60

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE E - RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

For income tax purposes, the fund reports using a December 31 year-end.  The fund’s net loss for financial reporting and tax return purposes for the year ended March 31, 2007 is reconciled as follows:

	Series 17			Series 18			Series 19
Net loss for financial reporting purposes	$	(1,182,692	)	$	(1,009,403	)	$	(2,010,656	)
Operating limited partnership rents received in advance	(2,517		)	(877		)	—
Accrued fund management fees not deducted (deducted) for tax purposes	319,920			403,191			411,348
Other	(165,699		)	1,066,261			1,609,769
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(1,605,973		)	(2,090,617		)	(2,695,033		)
Impairment loss in investment in operating limited partnership not deductible for tax purposes	199,703			404,990			760,383
Excess of tax depreciation over book depreciation on operating limited partnership assets	(405,521		)	(218,630		)	(249,827		)
Difference due to fiscal year for book purposes and calendar year for tax purposes	27,749			(247,893		)	(22,858		)
Loss for tax return purposes, year ended December 31, 2006	$	(2,815,030	)	$	(1,692,978	)	$	(2,196,874	)

F-61

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE E - RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2008, are as follows:

	Total			Series 15			Series 16
Investments in operating limited partnerships - tax return December 31, 2007	$	(24,884,755	)	$	(12,803,743	)	$	(6,397,225	)
Estimated share of loss for the three months ended March 31, 2008	(2,082,345		)	(358,789		)	—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	44,267,280			11,454,894			13,298,206
Impairment loss in investment in operating limited partnerships	(31,781,950		)	(1,432,911		)	(8,151,746		)
Historic tax credits	5,325,806			—			1,844,836
Other	10,816,968			3,350,109			(116,053		)
Investments in operating limited partnerships - as reported	$	1,661,004		$	209,560		$	478,018

F-62

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE E - RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2008, are as follows:

	Series 17			Series 18			Series 19
Investments in operating limited partnerships - tax return December 31, 2007	$	(4,263,719	)	$	(4,027,633	)	$	2,607,565
Estimated share of loss for the three months ended March 31, 2008	(752,440		)	(617,683		)	(353,433		)
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	7,194,178			7,452,804			4,867,198
Impairment loss in investment in operating limited partnerships	(6,142,671		)	(5,926,733		)	(10,127,889		)
Historic tax credits	1,100,310			2,062,333			318,327
Other	3,644,085			1,056,912			2,881,915
Investments in operating limited partnerships - as reported	$	779,743		$	—		$	193,683

F-63

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE E - RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2007, are as follows:

	Total			Series 15			Series 16
Investments in operating limited partnerships - tax return December 31, 2006	$	(16,076,357	)	$	(12,375,095	)	$	(4,003,807	)
Estimated share of loss for the three months ended March 31, 2007	(2,146,189		)	(422,633		)	—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	37,868,729			11,800,839			11,145,028
Impairment loss in investment in operating limited partnerships	(31,918,158		)	(1,902,745		)	(8,134,883		)
Historic tax credits	5,325,806			—			1,844,836
Other	10,365,208			3,261,558			275,691
Investments in operating limited partnerships - as reported	$	3,419,039		$	361,924		$	1,126,865

F-64

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE E - RECONCILIATION OF FINANCIAL STATEMENT NET LOSS TO INCOME TAX RETURN (Continued)

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2007, are as follows:

	Series 17			Series 18			Series 19
Investments in operating limited partnerships - tax return December 31, 2006	$	(2,524,577	)	$	(1,846,538	)	$	4,673,660
Estimated share of loss for the three months ended March 31, 2007	(752,440		)	(617,683		)	(353,433		)
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	5,912,028			5,214,009			3,796,825
Impairment loss in investment in operating limited partnerships	(5,855,208		)	(5,926,733		)	(10,098,589		)
Historic tax credits	1,100,310			2,062,333			318,327
Other	3,406,881			1,207,558			2,213,520
Investments in operating limited partnerships - as reported	$	1,286,994		$	92,946		$	550,310

F-65

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2008 and 2007

NOTE F - SUBSEQUENT EVENTS

Subsequent to March 31, 2008, the Fund has entered into agreements to either sell or transfer interests in twenty-one Operating Partnerships.  The estimated sales prices and other terms for the disposition of the Operating Partnerships have been determined.  The estimated proceeds to be received for these twenty-one Operating Partnerships’ is $6,643,001. The estimated gain on sales of the Operating Partnerships is $6,349,501 and are expected to be recognized in the second, third, or fourth quarter of 2008.

NOTE G - CASH EQUIVALENTS

On March 31, 2007, Boston Capital Tax Credit Fund III L.P. purchased $1,800,000 of corporate debt securities under agreements to resell on April 1, 2007.  Interest is earned at rates ranging from 1.8% to 3.0% per annum.

NOTE H - CONCENTRATION OF CREDIT RISK

The Fund maintains its cash and cash equivalent balances in several accounts in various financial institutions. The balances are generally insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC) up to specified limits by each institution. At times, the balances may exceed these insurance limits; however, the Fund has not experienced any losses with respect to it balances in excess of FDIC or SIPC insurance. Management believes that no significant concentration of credit risk with respect to these cash and cash equivalent balances exists as of March 31, 2008.

F-66