Exhibit 13

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

BOSTON CAPITAL TAX CREDIT FUND III

LIMITED PARTNERSHIP -

SERIES 15 THROUGH SERIES 19

MARCH 31, 2009 AND 2008

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

TABLE OF CONTENTS

	PAGE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	F-2
FINANCIAL STATEMENTS
BALANCE SHEETS	F-3
STATEMENTS OF OPERATIONS	F-9
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)	F-15
STATEMENTS OF CASH FLOWS	F-21
NOTES TO FINANCIAL STATEMENTS	F-27

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, 2009 and 2008, and the related statements of operations, changes in partners’ capital (deficit) 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, 2009. 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 $0 and $232,003 of the total partnership assets as of March 31, 2009 and 2008, respectively, and $92,052 and $808,242, of the total partnership loss for the years ended March 31, 2009 and 2008, respectively; of the assets for Series 15 as of March 31, 2009 and 2008, $0 and $201,333, respectively, and of the loss for Series 15 for the years ended March 31, 2009 and 2008, $92,052 and $88,635, respectively; of the assets for Series 16 as of March 31, 2009 and 2008, $0 and $0, respectively, and of the loss for Series 16 for the years ended March 31, 2009 and 2008, $0 and $0, respectively; of the assets for Series 17 as of March 31, 2009 and 2008, $0 and $0 , respectively, and of the loss for Series 17 for the years ended March 31, 2009 and 2008, $0 and $0, respectively; of the assets for Series 18 as of March 31, 2009 and 2008, $0 and $0, respectively, and of the loss for Series 18 for the years ended March 31, 2009 and 2008, $0 and $22,873, respectively; and of the assets for Series 19 as of March 31, 2009 and 2008, $0 and $30,670, respectively, and of the loss for Series 19 for the years ended March 31, 2009 and 2008, $0 and $145,216, 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 audits 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.

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, 2009 and 2008, 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, 2009, in conformity with accounting principles generally accepted in the United States of America.

/s/ Reznick Group, P.C.

REZNICK GROUP, P.C.

Bethesda, Maryland

June 30, 2009

F-2

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS

March 31, 2009 and 2008

	Total
	2009			2008
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	—		$	1,661,004
OTHER ASSETS
Cash and cash equivalents	2,112,652			775,079
Deferred acquisition costs, net of accumulated amortization	—			756,674
Other assets	30,000			63,707
	$	2,142,652		$	3,256,464
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	31,146		$	18,050
Accounts payable - affiliates	24,543,890			26,335,867
Capital contributions payable	138,241			158,311
	24,713,277			26,512,228
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, 2009 and 2008	—			—
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, 2009 and 2008	(20,474,640		)	(21,152,928		)
General partner	(2,095,985		)	(2,102,836		)
	(22,570,625		)	(23,255,764		)
	$	2,142,652		$	3,256,464

F-3

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2009 and 2008

	Series 15
	2009			2008
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	—		$	209,560
OTHER ASSETS
Cash and cash equivalents	422,913			200,415
Deferred acquisition costs, net of accumulated amortization	—			110,958
Other assets	—			28,707
	$	422,913		$	549,640
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	1,146		$	16,526
Accounts payable - affiliates	4,432,921			5,080,035
Capital contributions payable	—			—
	4,434,067			5,096,561
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, 2009 and 2008	—			—
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, 2009 and 2008	(3,648,853		)	(4,179,262		)
General partner	(362,301		)	(367,659		)
	(4,011,154		)	(4,546,921		)
	$	422,913		$	549,640

F-4

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2009 and 2008

	Series 16
	2009			2008
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	—		$	478,018
OTHER ASSETS
Cash and cash equivalents	462,408			197,645
Deferred acquisition costs, net of accumulated amortization	—			153,702
Other assets	—			—
	$	462,408		$	829,365
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	10,000		$	381
Accounts payable - affiliates	7,789,720			7,210,716
Capital contributions payable	51,792			71,862
	7,851,512			7,282,959
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, 2009 and 2008	—			—
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, 2009 and 2008	(6,848,604		)	(5,922,449		)
General partner	(540,500		)	(531,145		)
	(7,389,104		)	(6,453,594		)
	$	462,408		$	829,365

F-5

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2009 and 2008

	Series 17
	2009			2008
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	—		$	779,743
OTHER ASSETS
Cash and cash equivalents	198,047			190,524
Deferred acquisition costs, net of accumulated amortization	—			158,372
Other assets	30,000			30,000
	$	228,047		$	1,158,639
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	—		$	381
Accounts payable - affiliates	7,416,766			6,957,896
Capital contributions payable	67,895			67,895
	7,484,661			7,026,172
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, 2009 and 2008	—			—
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, 2009 and 2008	(6,763,270		)	(5,388,080		)
General partner	(493,344		)	(479,453		)
	(7,256,614		)	(5,867,533		)
	$	228,047		$	1,158,639

F-6

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2009 and 2008

	Series 18
	2009			2008
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	—		$	—
OTHER ASSETS
Cash and cash equivalents	247,862			76,676
Deferred acquisition costs, net of accumulated amortization	—			121,667
Other assets	—			5,000
	$	247,862		$	203,343
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	10,000		$	381
Accounts payable - affiliates	4,787,977			4,396,304
Capital contributions payable	18,554			18,554
	4,816,531			4,415,239
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, 2009 and 2008	—			—
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, 2009 and 2008	(4,212,755		)	(3,859,550		)
General partner	(355,914		)	(352,346		)
	(4,568,669		)	(4,211,896		)
	$	247,862		$	203,343

F-7

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2009 and 2008

	Series 19
	2009			2008
ASSETS
INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS	$	—		$	193,683
OTHER ASSETS
Cash and cash equivalents	781,422			109,819
Deferred acquisition costs, net of accumulated amortization	—			211,975
Other assets	—			—
	$	781,422		$	515,477
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	10,000		$	381
Accounts payable - affiliates	116,506			2,690,916
Capital contributions payable	—			—
	126,506			2,691,297
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, 2009 and 2008	—			—
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, 2009 and 2008	998,842			(1,803,587		)
General partner	(343,926		)	(372,233		)
	654,916			(2,175,820		)
	$	781,422		$	515,477

See notes to financial statements

F-8

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS

Years ended March 31, 2009 and 2008

	Total
	2009		2008
Income
Interest income	$	25,774	$	32,125
Other income	35,279		28,450
Total income	61,053		60,575
Share of income (losses) from operating limited partnerships	4,588,819		(1,376,172		)
Expenses
Professional fees	237,656		234,608
Partnership management fee	1,546,001		2,073,124
Amortization	52,381		52,385
Impairment loss	1,953,661		293,550
General and administrative expenses	175,034		206,203
	3,964,733		2,859,870
NET INCOME (LOSS)	$	685,139	$	(4,175,467	)
Net income (loss) allocated to general partner	$	6,851	$	(41,754	)
Net income (loss) allocated to limited partners	$	678,288	$	(4,133,713	)
Net income (loss) per BAC	$	0.03	$	(0.19	)

F-9

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 15
	2009		2008
Income
Interest income	$	5,137	$	11,941
Other income	4,013		1,249
Total income	9,150		13,190
Share of income (losses) from operating limited partnerships	1,070,860		(65,374		)
Expenses
Professional fees	57,277		55,253
Partnership management fee	272,623		362,888
Amortization	7,652		7,653
Impairment loss	154,346		6,087
General and administrative expenses	52,345		41,365
	544,243		473,246
NET INCOME (LOSS)	$	535,767	$	(525,430	)
Net income (loss) allocated to general partner	$	5,358	$	(5,254	)
Net income (loss) allocated to limited partners	$	530,409	$	(520,176	)
Net income (loss) per BAC	$	0.14	$	(0.13	)

F-10

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 16
	2009			2008
Income
Interest income	$	4,550		$	6,507
Other income	5,569			9,540
Total income	10,119			16,047
Share of income (losses) from operating limited partnerships	178,599			(645,050		)
Expenses
Professional fees	56,558			54,183
Partnership management fee	501,227			546,653
Amortization	10,600			10,600
Impairment loss	519,355			—
General and administrative expenses	36,488			49,820
	1,124,228			661,256
NET INCOME (LOSS)	$	(935,510	)	$	(1,290,259	)
Net income (loss) allocated to general partner	$	(9,355	)	$	(12,903	)
Net income (loss) allocated to limited partners	$	(926,155	)	$	(1,277,356	)
Net income (loss) per BAC	$	(0.17	)	$	(0.24	)

F-11

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 17
	2009			2008
Income
Interest income	$	4,293		$	6,639
Other income	10,007			12,097
Total income	14,300			18,736
Share of income (losses) from operating limited partnerships	(81,403		)	(216,176		)
Expenses
Professional fees	54,760			45,179
Partnership management fee	384,815			425,920
Amortization	11,312			11,312
Impairment loss	839,397			287,463
General and administrative expenses	31,694			44,180
	1,321,978			814,054
NET INCOME (LOSS)	$	(1,389,081	)	$	(1,011,494	)
Net income (loss) allocated to general partner	$	(13,891	)	$	(10,115	)
Net income (loss) allocated to limited partners	$	(1,375,190	)	$	(1,001,379	)
Net income (loss) per BAC	$	(0.28	)	$	(0.20	)

F-12

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 18
	2009			2008
Income
Interest income	$	1,137		$	2,934
Other income	2,348			4,514
Total income	3,485			7,448
Share of income (losses) from operating limited partnerships	120,596			(92,945		)
Expenses
Professional fees	37,543			37,765
Partnership management fee	296,614			368,091
Amortization	8,388			8,391
Impairment loss	113,279			—
General and administrative expenses	25,030			34,195
	480,854			448,442
NET INCOME (LOSS)	$	(356,773	)	$	(533,939	)
Net income (loss) allocated to general partner	$	(3,568	)	$	(5,339	)
Net income (loss) allocated to limited partners	$	(353,205	)	$	(528,600	)
Net income (loss) per BAC	$	(0.10	)	$	(0.15	)

F-13

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 19
	2009		2008
Income
Interest income	$	10,657	$	4,104
Other income	13,342		1,050
Total income	23,999		5,154
Share of income (losses) from operating limited partnerships	3,300,167		(356,627		)
Expenses
Professional fees	31,518		42,228
Partnership management fee	90,722		369,572
Amortization	14,429		14,429
Impairment loss	327,284		—
General and administrative expenses	29,477		36,643
	493,430		462,872
NET INCOME (LOSS)	$	2,830,736	$	(814,345	)
Net income (loss) allocated to general partner	$	28,307	$	(8,143	)
Net income (loss) allocated to limited partners	$	2,802,429	$	(806,202	)
Net income (loss) per BAC	$	0.69	$	(0.20	)

See notes to financial statements

F-14

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

Years ended March 31, 2009 and 2008

	Limited			General
Total	partners			partner			Total
Partners’ capital (deficit), March 31, 2007	$	(17,019,215	)	$	(2,061,082	)	$	(19,080,297	)
Net income (loss)	(4,133,713		)	(41,754		)	(4,175,467		)
Partners’ capital (deficit), March 31, 2008	$	(21,152,928	)	$	(2,102,836	)	$	(23,255,764	)
Net income (loss)	678,288			6,851			685,139
Partners’ capital (deficit), March 31, 2009	$	(20,474,640	)	$	(2,095,985	)	$	(22,570,625	)

F-15

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, 2009 and 2008

	Limited			General
Series 15	partners			partner			Total
Partners’ capital (deficit), March 31, 2007	$	(3,659,086	)	$	(362,405	)	$	(4,021,491	)
Net income (loss)	(520,176		)	(5,254		)	(525,430		)
Partners’ capital (deficit), March 31, 2008	$	(4,179,262	)	$	(367,659	)	$	(4,546,921	)
Net income (loss)	530,409			5,358			535,767
Partners’ capital (deficit), March 31, 2009	$	(3,648,853	)	$	(362,301	)	$	(4,011,154	)

F-16

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, 2009 and 2008

	Limited			General
Series 16	partners			partner			Total
Partners’ capital (deficit), March 31, 2007	$	(4,645,093	)	$	(518,242	)	$	(5,163,335	)
Net income (loss)	(1,277,356		)	(12,903		)	(1,290,259		)
Partners’ capital (deficit), March 31, 2008	$	(5,922,449	)	$	(531,145	)	$	(6,453,594	)
Net income (loss)	(926,155		)	(9,355		)	(935,510		)
Partners’ capital (deficit), March 31, 2009	$	(6,848,604	)	$	(540,500	)	$	(7,389,104	)

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, 2009 and 2008

	Limited			General
Series 17	partners			partner			Total
Partners’ capital (deficit), March 31, 2007	$	(4,386,701	)	$	(469,338	)	$	(4,856,039	)
Net income (loss)	(1,001,379		)	(10,115		)	(1,011,494		)
Partners’ capital (deficit), March 31, 2008	$	(5,388,080	)	$	(479,453	)	$	(5,867,533	)
Net income (loss)	(1,375,190		)	(13,891		)	(1,389,081		)
Partners’ capital (deficit), March 31, 2009	$	(6,763,270	)	$	(493,344	)	$	(7,256,614	)

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, 2009 and 2008

	Limited			General
Series 18	partners			partner			Total
Partners’ capital (deficit), March 31, 2007	$	(3,330,950	)	$	(347,007	)	$	(3,677,957	)
Net income (loss)	(528,600		)	(5,339		)	(533,939		)
Partners’ capital (deficit), March 31, 2008	$	(3,859,550	)	$	(352,346	)	$	(4,211,896	)
Net income (loss)	(353,205		)	(3,568		)	(356,773		)
Partners’ capital (deficit), March 31, 2009	$	(4,212,755	)	$	(355,914	)	$	(4,568,669	)

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, 2009 and 2008

	Limited			General
Series 19	partners			partner			Total
Partners’ capital (deficit), March 31, 2007	$	(997,385	)	$	(364,090	)	$	(1,361,475	)
Net income (loss)	(806,202		)	(8,143		)	(814,345		)
Partners’ capital (deficit), March 31, 2008	$	(1,803,587	)	$	(372,233	)	$	(2,175,820	)
Net income (loss)	2,802,429			28,307			2,830,736
Partners’ capital (deficit), March 31, 2009	$	998,842		$	(343,926	)	$	654,916

See notes to financial statements

F-20

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS

Years ended March 31, 2009 and 2008

	Total
	2009			2008
Cash flows from operating activities
Net income (loss)	$	685,139		$	(4,175,467	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	(4,588,819		)	1,376,172
Distributions received from operating limited partnerships	3,859			7,409
Impairment loss	1,953,661			293,550
Amortization	52,381			52,385
Changes in assets and liabilities
Other assets	(2,746		)	(7,340		)
Accounts payable and accrued expenses	13,101			16,906
Accounts payable - affiliates	(1,791,977		)	1,187,067
Net cash provided by (used in) operating activities	(3,675,401		)	(1,249,318		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	(20,070		)	(4,208		)
Proceeds from disposition of operating limited partnerships	5,033,044			80,903
Net cash provided by (used in) investing activities	5,012,974			76,695
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,337,573			(1,172,623		)
Cash and cash equivalents, beginning	775,079			1,947,702
Cash and cash equivalents, end	$	2,112,652		$	775,079

F-21

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 15
	2009			2008
Cash flows from operating activities
Net income (loss)	$	535,767		$	(525,430	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	(1,070,860		)	65,374
Distributions received from operating limited partnerships	—			—
Impairment loss	154,346			6,087
Amortization	7,652			7,653
Changes in assets and liabilities
Other assets	27,791			(7,340		)
Accounts payable and accrued expenses	(15,378		)	15,381
Accounts payable - affiliates	(647,114		)	(783,229		)
Net cash provided by (used in) operating activities	(1,007,796		)	(1,221,504		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	—			(4,208		)
Proceeds from disposition of operating limited partnerships	1,230,294			80,903
Net cash provided by (used in) investing activities	1,230,294			76,695
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	222,498			(1,144,809		)
Cash and cash equivalents, beginning	200,415			1,345,224
Cash and cash equivalents, end	$	422,913		$	200,415

F-22

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 16
	2009			2008
Cash flows from operating activities
Net income (loss)	$	(935,510	)	$	(1,290,259	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	(178,599		)	645,050
Distributions received from operating limited partnerships	3,859			3,797
Impairment loss	519,355			—
Amortization	10,600			10,600
Changes in assets and liabilities
Other assets	—			—
Accounts payable and accrued expenses	9,619			381
Accounts payable - affiliates	579,004			637,927
Net cash provided by (used in) operating activities	8,328			7,496
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	(20,070		)	—
Proceeds from disposition of operating limited partnerships	276,505			—
Net cash provided by (used in) investing activities	256,435			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	264,763			7,496
Cash and cash equivalents, beginning	197,645			190,149
Cash and cash equivalents, end	$	462,408		$	197,645

F-23

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 17
	2009			2008
Cash flows from operating activities
Net income (loss)	$	(1,389,081	)	$	(1,011,494	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	81,403			216,176
Distributions received from operating limited partnerships	—			3,612
Impairment loss	839,397			287,463
Amortization	11,312			11,312
Changes in assets and liabilities
Other assets	(30,000		)	—
Accounts payable and accrued expenses	(378		)	381
Accounts payable - affiliates	458,870			517,260
Net cash provided by (used in) operating activities	(28,477		)	24,710
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	—			—
Proceeds from disposition of operating limited partnerships	36,000			—
Net cash provided by (used in) investing activities	36,000			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	7,523			24,710
Cash and cash equivalents, beginning	190,524			165,814
Cash and cash equivalents, end	$	198,047		$	190,524

F-24

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 18
	2009			2008
Cash flows from operating activities
Net income (loss)	$	(356,773	)	$	(533,939	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	(120,596		)	92,945
Distributions received from (refunded to) operating limited partnerships	—			—
Impairment loss	113,279			—
Amortization	8,388			8,391
Changes in assets and liabilities
Other assets	—			—
Accounts payable and accrued expenses	9,619			382
Accounts payable - affiliates	391,673			401,554
Net cash provided by (used in) operating activities	45,590			(30,667		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	—			—
Proceeds from disposition of operating limited partnerships	125,596			—
Net cash provided by (used in) investing activities	125,596			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	171,186			(30,667		)
Cash and cash equivalents, beginning	76,676			107,343
Cash and cash equivalents, end	$	247,862		$	76,676

F-25

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2009 and 2008

	Series 19
	2009			2008
Cash flows from operating activities
Net income (loss)	$	2,830,736		$	(814,345	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships	(3,300,167		)	356,627
Distributions received from operating limited partnerships	—			—
Impairment loss	327,284			—
Amortization	14,429			14,429
Changes in assets and liabilities
Other assets	(537		)	—
Accounts payable and accrued expenses	9,619			381
Accounts payable - affiliates	(2,574,410		)	413,555
Net cash provided by (used in) operating activities	(2,693,046		)	(29,353		)
Cash flows from investing activities
Capital contributions paid to operating limited partnerships	—			—
Proceeds from disposition of operating limited partnerships	3,364,649			—
Net cash provided by (used in) investing activities	3,364,649			—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	671,603			(29,353		)
Cash and cash equivalents, beginning	109,819			139,172
Cash and cash equivalents, end	$	781,422		$	109,819

See notes to financial statements

F-26

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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.

F-27

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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

The BACs issued and outstanding in each series at March 31, 2009 and 2008 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

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.

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.

F-28

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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

Investments in Operating Limited Partnerships (Continued)

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:

	2009		2008
Series 15	$	36,759	$	36,930
Series 16	14,193		14,193
Series 17	115,401		85,401
Series 18	62,536		57,536
Series 19	1,691		2,921
	$	230,580	$	196,981

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 $1,953,661 and $293,550 during the years ended March 31, 2009 and 2008, respectively. 

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.

F-29

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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

Investments in Operating Limited Partnerships (Continued)

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. 

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.

F-30

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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

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 were being amortized on the straight-line method, over 27.5 years (330 months). During March 31, 2009 an impairment loss of $704,293 was recorded which resulted in deferred acquisition costs being written off to $0.

Accumulated amortization as of March 31, 2009 and 2008 is as follows:

	2009		2008
Series 15	$	—	$	178,212
Series 16	—		309,729
Series 17	—		269,377
Series 18	—		193,270
Series 19	—		186,077
	$	—	$	1,136,665

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.

In June 2006, the Financial Accounting Standards Board (`FASB”) issued Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements.  FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are more-likely-than-not of being sustained upon examination by the applicable tax authority, based on the technical merits of the tax position, and then recognizing the tax benefit that is more-likely-than-not to be realized.  Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current reporting period.  As required, the fund adopted FIN 48 effective April 1, 2007 and concluded that the effect is not material to its financial statements.  Accordingly, no cumulative effect adjustment related to the adoption of FIN 48 was recorded.

F-31

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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

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.

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, 2009 and 2008 are as follows:

	2009		2008
Series 15	$	3,870,500	$	3,870,500
Series 16	5,429,402		5,429,402
Series 17	5,000,000		5,000,000
Series 18	3,616,200		3,616,200
Series 19	4,080,000		4,080,000
	$	21,996,102	$	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-32

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE B - RELATED PARTY TRANSACTIONS

During the years ended March 31, 2009 and 2008, 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, 2009 and 2008 is as follows:

	2009		2008
Series 15	$	352,945	$	441,771
Series 16	603,786		635,316
Series 17	508,870		517,260
Series 18	375,660		381,948
Series 19	325,590		411,348
	$	2,166,851	$	2,387,643

F-33

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

The reporting fees paid by the operating limited partnerships to the partnership for the years ended March 31, 2009 and 2008 are as follows:

	2009		2008
Series 15	$	80,322	$	78,883
Series 16	102,559		88,663
Series 17	124,055		91,340
Series 18	79,046		13,857
Series 19	234,868		41,776
	$	620,850	$	314,519

The partnership management fees paid for the years ended March 31, 2009 and 2008 are as follows:

	2009		2008
Series 15	$	1,000,059	$	1,225,000
Series 16	24,782		—
Series 17	50,000		—
Series 18	—		—
Series 19	2,900,000		—
	$	3,974,841	$	1,225,000

F-34

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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 as of March 31, 2009 and 2008 are as follows:

	2009		2008
Series 15	$	—	$	—
Series 16	2,611		2,611
Series 17	635,362		635,362
Series 18	144,796		128,783
Series 19	2,207		2,207
	$	784,976	$	768,963

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 (BCAMLP) during the years ended March 31, 2009 and 2008 charged to each series’ operations are as follows:

	2009		2008
Series 15	$	21,527	$	24,349
Series 16	22,648		25,976
Series 17	19,652		23,239
Series 18	16,058		19,606
Series 19	15,450		19,365
	$	95,335	$	112,535

F-35

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

Accounts payable - affiliates at March 31, 2009 and 2008 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, 2009 and 2008, 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, 2009 and 2008 by series are as follows:

	2009	2008
Series 15	43	58
Series 16	48	61
Series 17	44	47
Series 18	29	34
Series 19	22	26
	186	226

F-36

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

During the year ended March 31, 2009 the partnership disposed of forty of the operating limited partnerships. A summary of the dispositions by Series for March 31, 2009 is as follows:

	Operating	Sale of
	Partnership	Underlying	Partnership
	Interest	Operating	Proceeds from		Gain/(Loss) on
	Transferred	Partnership	Disposition		Disposition
Series 15	14	1	$	1,230,294	$	1,172,053
Series 16	13	—	276,505		197,364
Series 17	3	—	36,000		36,000
Series 18	5	—	125,596		125,596
Series 19	4	—	3,364,649		3,364,649
Total	39	1	$	5,033,044	$	4,895,662

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

	Operating	Sale of
	Partnership	Underlying	Partnership
	Interest	Operating	Proceeds from		Gain/(Loss) on
	Transferred	Partnership	Disposition*		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.

F-37

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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, 2009 and 2008 by series are as follows:

	2009		2008
Series 15	$	—	$	—
Series 16	51,792		71,862
Series 17	67,895		67,895
Series 18	18,554		18,554
Series 19	—		—
	$	138,241	$	158,311

F-38

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2009 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	$	118,326,160		$	14,239,873		$	28,167,833
Acquisition costs of operating limited partnerships	14,908,373			1,856,981			3,305,566
Syndication costs from operating limited partnerships	(57,566		)	—			—
Cumulative distributions from operating limited partnerships	(847,302		)	(11,825		)	(424,111		)
Cumulative impairment loss in investment in operating limited partnerships	(28,582,466		)	(1,373,717		)	(6,170,045		)
Cumulative losses from operating limited partnerships	(103,747,199		)	(14,711,312		)	(24,879,243		)
Investments in operating limited partnerships per balance sheets	—			—			—
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2009 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2008 (see note A)	(1,054,265		)	(128,731		)	(93,920		)
The fund has recorded acquisition costs at March 31, 2009 which have not been recorded in the net assets of the operating limited partnerships (see note A)	(2,523,786		)	(349,715		)	(449,632		)
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)	1,888,020			243,906			—

F-39

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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)	(43,559,347		)	(9,559,854		)	(12,312,224		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)	634,243			121,387			123,804
Cumulative impairment loss in investment in operating limited partnerships	28,582,466			1,373,717			6,170,045
Other	650,623			(48,239		)	779,517
Equity per operating limited partnerships’ combined financial statements	$	(15,382,046	)	$	(8,347,529	)	$	(5,782,410	)

F-40

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The fund’s investments in operating limited partnerships at March 31, 2009 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	$	29,235,539		$	24,708,515		$	21,974,400
Acquisition costs of operating limited partnerships	3,635,326			3,441,293			2,669,207
Syndication costs from operating limited partnerships	—			(57,566		)	—
Cumulative distributions from operating limited partnerships	(139,408		)	(134,254		)	(137,704		)
Cumulative impairment loss in investment in operating limited partnerships	(6,863,175		)	(5,926,733		)	(8,248,796		)
Cumulative losses from operating limited partnerships	(25,868,282		)	(22,031,255		)	(16,257,107		)
Investments in operating limited partnerships per balance sheets	—			—			—
The fund has recorded capital contributions to the operating limited partnerships during the year ended March 31, 2009 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2008 (see note A)	(710,224		)	(61,783		)	(59,607		)
The fund has recorded acquisition costs at March 31, 2009 which have not been recorded in the net assets of the operating limited partnerships (see note A)	(695,315		)	(387,564		)	(641,560		)
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)	737,012			569,226			337,876

F-41

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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)	(8,544,063		)	(8,384,400		)	(4,758,806		)
The fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)	59,201			86,988			242,863
Cumulative impairment loss in investment in operating limited partnerships	6,863,175			5,926,733			8,248,796
Other	(56,777		)	7,600			(31,478		)
Equity per operating limited partnerships’ combined financial statements	$	(2,346,991	)	$	(2,243,200	)	$	3,338,084

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:

	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-43

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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-44

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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-45

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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-46

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2008 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS
Buildings and improvements, net of accumulated depreciation	$	233,999,274		$	31,537,364		$	54,836,178
Land	20,743,616			3,103,668			3,976,252
Other assets	30,907,091			5,587,807			7,846,453
	$	285,649,981		$	40,228,839		$	66,658,883
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	258,538,928		$	46,431,057		$	58,509,839
Accounts payable and accrued expenses	14,640,749			528,316			7,549,170
Other liabilities	31,480,965			2,457,597			4,366,765
	304,660,642			49,416,970			70,425,774
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.	(15,382,046		)	(8,347,529		)	(5,782,410		)
Other partners	(3,628,615		)	(840,602		)	2,015,519
	(19,010,661		)	(9,188,131		)	(3,766,891		)
	$	285,649,981		$	40,228,839		$	66,658,883

F-47

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2008 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS
Buildings and improvements, net of accumulated depreciation	$	66,261,640		$	38,588,297		$	42,775,795
Land	6,265,765			3,061,789			4,336,142
Other assets	8,810,213			5,136,478			3,526,140
	$	81,337,618		$	46,786,564		$	50,638,077
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	77,953,401		$	38,147,354		$	37,497,277
Accounts payable and accrued expenses	1,988,256			2,897,860			1,677,147
Other liabilities	9,424,340			8,295,175			6,937,088
	89,365,997			49,340,389			46,111,512
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.	(2,346,991		)	(2,243,200		)	3,338,084
Other partners	(5,681,388		)	(310,625		)	1,188,481
	(8,028,379		)	(2,553,825		)	4,526,565
	$	81,337,618		$	46,786,564		$	50,638,077

F-48

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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, 2009 and 2008

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, 2009 and 2008

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, 2008 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	52,092,502		$	8,043,825		$	11,818,857
Interest and other	1,981,420			212,769			640,997
	54,073,922			8,256,594			12,459,854
Expenses
Interest	11,926,535			1,455,152			2,620,373
Depreciation and amortization	13,925,588			2,124,441			3,329,968
Taxes and insurance	6,701,224			958,320			1,596,887
Repairs and maintenance	11,516,222			1,915,072			2,949,000
Operating expenses	19,833,568			3,240,257			4,563,176
Other expenses	899,257			58,356			188,811
	64,802,394			9,751,598			15,248,215
NET LOSS	$	(10,728,472	)	$	(1,495,004	)	$	(2,788,361	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(8,115,760	)	$	(1,222,377	)	$	(2,535,933	)
Net loss allocated to other partners	$	(2,612,712	)	$	(272,627	)	$	(252,428	)

* Amounts include $1,122,099, $2,517,167, $1,648,448, $1,615,956, and $941,697 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-51

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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, 2008 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	15,819,913		$	7,621,743		$	8,788,164
Interest and other	686,917			214,891			225,846
	16,506,830			7,836,634			9,014,010
Expenses
Interest	3,728,973			1,791,186			2,330,851
Depreciation and amortization	3,908,002			2,423,110			2,140,067
Taxes and insurance	1,965,609			1,114,089			1,066,319
Repairs and maintenance	3,427,105			1,848,160			1,376,885
Operating expenses	5,834,681			3,012,623			3,182,831
Other expenses	210,623			207,401			234,066
	19,074,993			10,396,569			10,331,019
NET LOSS	$	(2,568,163	)	$	(2,559,935	)	$	(1,317,009	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(1,735,851	)	$	(1,615,956	)	$	(1,005,643	)
Net loss allocated to other partners	$	(832,312	)	$	(943,979	)	$	(311,366	)

* Amounts include $1,122,099, $2,517,167, $1,648,448, $1,615,956, and $941,697 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-52

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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, 2009 and 2008

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 Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE D - OTHER ASSETS

Other assets include cash advanced to operating limited partnerships at March 31, 2009 and 2008, some of which is to be applied to capital contributions payable when certain criteria have been met.  The advances at March 31, 2009 and 2008 by series are as follows:

	2009		2008
Series 15	$	—	$	—
Series 16	—		—
Series 17	30,000		30,000
Series 18	—		5,000
Series 19	—		—
	$	30,000	$	35,000

F-55

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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, 2009 is reconciled as follows:

	Total			Series 15			Series 16
Net income (loss) for financial reporting purposes	$	685,139		$	535,767		$	(935,510	)
Operating limited partnership rents received in advance	19,946			1,008			5,442
Accrued fund management fees not deducted (deducted) for tax purposes	(1,807,990		)	(647,114		)	579,004
Other	4,397,250			3,633,734			(556,225		)
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(7,845,367		)	(1,122,099		)	(2,517,167		)
Impairment loss in investment in operating limited partnership not deductible for tax purposes	1,249,368			51,040			376,253
Excess of tax depreciation over book depreciation on operating limited partnership assets	(1,654,512		)	(292,759		)	(360,268		)
Difference due to fiscal year for book purposes and calendar year for tax purposes	(2,839,333		)	(158,437		)	(52,523		)
Income (Loss) for tax return purposes, year ended December 31, 2008	$	(7,795,499	)	$	2,001,140		$	(3,460,994	)

F-56

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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, 2009 is reconciled as follows:

	Series 17			Series 18			Series 19
Net income (loss) for financial reporting purposes	$	(1,389,081	)	$	(356,773	)	$	2,830,736
Operating limited partnership rents received in advance	14,413			(917		)	—
Accrued fund management fees not deducted (deducted) for tax purposes	458,870			375,660			(2,574,410		)
Other	354,208			(454,126		)	1,419,659
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting	(1,648,448		)	(1,615,956		)	(941,697		)
Impairment loss in investment in operating limited partnership not deductible for tax purposes	692,337			—			129,738
Excess of tax depreciation over book depreciation on operating limited partnership assets	(510,922		)	(188,985		)	(301,578		)
Difference due to fiscal year for book purposes and calendar year for tax purposes	152,725			(63,866		)	(2,717,232		)
Income (Loss) for tax return purposes, year ended December 31, 2008	$	(1,875,898	)	$	(2,304,963	)	$	(2,154,784	)

F-57

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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 income (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		)
Income (Loss) for tax return purposes, year ended December 31, 2008	$	(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, 2009 and 2008

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 income (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		)
Income (Loss) for tax return purposes, year ended December 31, 2008	$	(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, 2009 and 2008

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, 2009, are as follows:

	Total			Series 15			Series 16
Investments in operating limited partnerships - tax return December 31, 2008	$	(34,008,424	)	$	(10,991,055	)	$	(9,976,616	)
Estimated share of loss for the three months ended March 31, 2009	(1,888,020		)	(243,906		)	—
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	43,559,347			9,559,854			12,312,224
Impairment loss in investment in operating limited partnerships	(28,582,466		)	(1,373,717		)	(6,170,045		)
Historic tax credits	5,325,806			—			1,844,836
Other	15,593,757			3,048,824			1,989,601
Investments in operating limited partnerships - as reported	$	—		$	—		$	—

F-60

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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, 2009, are as follows:

	Series 17			Series 18			Series 19
Investments in operating limited partnerships - tax return December 31, 2008	$	(6,179,677	)	$	(6,287,617	)	$	(573,459	)
Estimated share of loss for the three months ended March 31, 2009	(737,012		)	(569,226		)	(337,876		)
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method	8,544,063			8,384,400			4,758,806
Impairment loss in investment in operating limited partnerships	(6,863,175		)	(5,926,733		)	(8,248,796		)
Historic tax credits	1,100,310			2,062,333			318,327
Other	4,135,491			2,336,843			4,082,998
Investments in operating limited partnerships - as reported	$	—		$	—		$	—

F-61

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

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, 2009 and 2008

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 Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2009 and 2008

NOTE F - SUBSEQUENT EVENTS

Prior to and subsequent to March 31, 2009, the fund has entered into agreements to either sell or transfer interests in ten operating limited partnerships which are expected to close in the year ended March 31, 2010.  The estimated sales prices and other terms for the disposition of the operating limited partnerships have been determined.  The estimated proceeds to be received for these ten operating limited partnerships is $1,365,217. The estimated gain on sales of the operating limited  partnerships is $1,152,745 and is expected to be recognized in the first, second, or third quarter of fiscal year ended March 31, 2010.

NOTE G - 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) 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 insurance. Management believes that no significant concentration of credit risk with respect to these cash and cash equivalent balances exists as of March 31, 2009.

NOTE H - FAIR VALUE OF FINANCIAL INSTRUMENTS

The fund is subject to the disclosure provisions of FASB Statement No. 107, “Disclosures about Fair Value of Financial Instruments,” (FAS 107), which requires disclosure of the fair value of the funds’s financial instruments.  As of March 31, 2009, the funds’s financial instruments relate to other assets and accounts payable - affiliates.  Management has not disclosed the fair value of the financial instruments because determination of such fair value is deemed to be impractical.  The other assets and accounts payable - affiliates are due from or owed to affiliates of the fund.  The unique nature of these financial instruments makes determination of any fair value impractical. See notes B and D for disclosure of the carrying amount and terms of these financial instruments.

F-64