FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

BOSTON CAPITAL TAX CREDIT FUND III

LIMITED PARTNERSHIP -

SERIES 15 THROUGH SERIES 19

MARCH 31, 2011 AND 2010

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-3
FINANCIAL STATEMENTS
BALANCE SHEETS	F-4
STATEMENTS OF OPERATIONS	F-10
STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)	F-16
STATEMENTS OF CASH FLOWS	F-22
NOTES TO FINANCIAL STATEMENTS	F-28

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.

F-2

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Partners

Boston Capital Tax Credit Fund III Limited Partnership

We have audited the accompanying balance sheets of Boston Capital Tax Credit Fund III Limited Partnership - Series 15 through Series 19, in total and for each series, as of March 31, 2011 and 2010, 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, 2011. 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 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 provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Boston Capital Tax Credit Fund III Limited Partnership - Series 15 through Series 19, in total and for each series, as of March 31, 2011 and 2010, 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, 2011, 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 29, 2011

F-3

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS

March 31, 2011 and 2010

	Total
	2011			2010
ASSETS
OTHER ASSETS
Cash and cash equivalents	$	5,463,659		$	2,049,777
Other assets		75,938			14,500
	$	5,539,597		$	2,064,277
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	112,546		$	108,846
Accounts payable - affiliates		24,721,709			24,466,490
Capital contributions payable		93,144			93,144
		24,927,399			24,668,480
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, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and 21,994,302 and 21,996,102 outstanding at March 31, 2011 and 2010,  respectively		(17,338,646	)		(20,507,883	)
General partner		(2,049,156	)		(2,096,320	)
		(19,387,802	)		(22,604,203	)
	$	5,539,597		$	2,064,277

(continued)

F-4

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 15
	2011			2010
ASSETS
OTHER ASSETS
Cash and cash equivalents	$	299,446		$	278,978
Other assets		69,038			1,100
	$	368,484		$	280,078
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	38,746		$	36,346
Accounts payable - affiliates		4,071,131			3,879,606
Capital contributions payable		-			-
		4,109,877			3,915,952
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, 2011 and 2010		-			-
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, 2011 and 2010		(3,381,790	)		(3,277,326	)
General partner		(359,603	)		(358,548	)
		(3,741,393	)		(3,635,874	)
	$	368,484		$	280,078

(continued)

F-5

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 16
	2011			2010
ASSETS
OTHER ASSETS
Cash and cash equivalents	$	416,806		$	416,557
Other assets		2,500			2,500
	$	419,306		$	419,057
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	12,500		$	-
Accounts payable - affiliates		8,404,538			8,144,790
Capital contributions payable		51,792			51,792
		8,468,830			8,196,582
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, 2011 and 2010		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and 5,427,602 and 5,429,402 outstanding at March 31, 2011 and 2010, respectively		(7,502,420	)		(7,233,141	)
General partner		(547,104	)		(544,384	)
		(8,049,524	)		(7,777,525	)
	$	419,306		$	419,057

(continued)

F-6

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 17
	2011			2010
ASSETS
OTHER ASSETS
Cash and cash equivalents	$	328,413		$	199,038
Other assets		4,400			8,700
	$	332,813		$	207,738
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	48,500		$	12,500
Accounts payable - affiliates		6,931,537			7,300,178
Capital contributions payable		22,798			22,798
		7,002,835			7,335,476
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, 2011 and 2010		-			-
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, 2011 and 2010		(6,182,544	)		(6,635,683	)
General partner		(487,478	)		(492,055	)
		(6,670,022	)		(7,127,738	)
	$	332,813		$	207,738

(continued)

F-7

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 18
	2011			2010
ASSETS
OTHER ASSETS
Cash and cash equivalents	$	293,045		$	347,309
Other assets		-			-
	$	293,045		$	347,309
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	-		$	15,000
Accounts payable - affiliates		5,314,503			5,141,916
Capital contributions payable		18,554			18,554
		5,333,057			5,175,470
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, 2011 and 2010		-			-
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, 2011 and 2010		(4,679,384	)		(4,469,652	)
General partner		(360,628	)		(358,509	)
		(5,040,012	)		(4,828,161	)
	$	293,045		$	347,309

(continued)

F-8

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2011 and 2010

	Series 19
	2011			2010
ASSETS
OTHER ASSETS
Cash and cash equivalents	$	4,125,949		$	807,895
Other assets		-			2,200
	$	4,125,949		$	810,095
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses	$	12,800		$	45,000
Accounts payable - affiliates		-			-
Capital contributions payable		-			-
		12,800			45,000
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, 2011 and 2010		-			-
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, 2011 and 2010		4,407,492			1,107,919
General partner		(294,343	)		(342,824	)
		4,113,149			765,095
	$	4,125,949		$	810,095

See notes to financial statements

F-9

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS

Years ended March 31, 2011 and 2010

	Total
	2011		2010
Income
Interest income	$	21,951	$	15,215
Other income		101,777		103,790
Total income		123,728		119,005
Share of income (losses) from operating limited partnerships		6,099,658		1,474,600
Expenses
Professional fees		181,876		198,814
Partnership management fee		1,200,472		1,293,970
General and administrative expenses		124,637		134,399
		1,506,985		1,627,183
NET INCOME (LOSS)	$	4,716,401	$	(33,578	)
Net income (loss) allocated to general partner	$	47,164	$	(335	)
Net income (loss) allocated to limited partners	$	4,669,237	$	(33,243	)
Net income (loss) per BAC	$	0.21	$	(0.00	)

(continued)

F-10

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 15
	2011			2010
Income
Interest income	$	2,201		$	3,105
Other income		2,313			481
Total income		4,514			3,586
Share of income (losses) from operating limited partnerships		129,038			661,300
Expenses
Professional fees		40,864			44,802
Partnership management fee		167,675			216,362
General and administrative expenses		30,532			28,442
		239,071			289,606
NET INCOME (LOSS)	$	(105,519	)	$	375,280
Net income (loss) allocated to general partner	$	(1,055	)	$	3,753
Net income (loss) allocated to limited partners	$	(104,464	)	$	371,527
Net income (loss) per BAC	$	(0.03	)	$	0.10

(continued)

F-11

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 16
	2011			2010
Income
Interest income	$	3,285		$	3,185
Other income		3,911			5,881
Total income		7,196			9,066
Share of income (losses) from operating limited partnerships		204,525			62,076
Expenses
Professional fees		40,659			48,593
Partnership management fee		413,509			378,517
General and administrative expenses		29,552			32,453
		483,720			459,563
NET INCOME (LOSS)	$	(271,999	)	$	(388,421	)
Net income (loss) allocated to general partner	$	(2,720	)	$	(3,884	)
Net income (loss) allocated to limited partners	$	(269,279	)	$	(384,537	)
Net income (loss) per BAC	$	(0.05	)	$	(0.07	)

(continued)

F-12

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 17
	2011		2010
Income
Interest income	$	5,552	$	2,776
Other income		12,574		4,733
Total income		18,126		7,509
Share of income (losses) from operating limited partnerships		819,215		511,224
Expenses
Professional fees		37,427		38,058
Partnership management fee		317,273		323,167
General and administrative expenses		24,925		28,632
		379,625		389,857
NET INCOME (LOSS)	$	457,716	$	128,876
Net income (loss) allocated to general partner	$	4,577	$	1,289
Net income (loss) allocated to limited partners	$	453,139	$	127,587
Net income (loss) per BAC	$	0.09	$	0.03

(continued)

F-13

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 18
	2011			2010
Income
Interest income	$	2,237		$	1,141
Other income		31,276			54,252
Total income		33,513			55,393
Share of income (losses) from operating limited partnerships		-			(21,000	)
Expenses
Professional fees		27,866			29,928
Partnership management fee		197,734			241,864
General and administrative expenses		19,764			22,093
		245,364			293,885
NET INCOME (LOSS)	$	(211,851	)	$	(259,492	)
Net income (loss) allocated to general partner	$	(2,119	)	$	(2,595	)
Net income (loss) allocated to limited partners	$	(209,732	)	$	(256,897	)
Net income (loss) per BAC	$	(0.06	)	$	(0.07	)

(continued)

F-14

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 19
	2011		2010
Income
Interest income	$	8,676	$	5,008
Other income		51,703		38,443
Total income		60,379		43,451
Share of income (losses) from operating limited partnerships		4,946,880		261,000
Expenses
Professional fees		35,060		37,433
Partnership management fee		104,281		134,060
General and administrative expenses		19,864		22,779
		159,205		194,272
NET INCOME (LOSS)	$	4,848,054	$	110,179
Net income (loss) allocated to general partner	$	48,481	$	1,102
Net income (loss) allocated to limited partners	$	4,799,573	$	109,077
Net income (loss) per BAC	$	1.18	$	0.03

See notes to financial statements

F-15

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CHANGES IN PARTNERS’ CAPITAL (DEFICIT)

Years ended March 31, 2011 and 2010

	Limited			General
Total	partners			partner			Total
Partners’ capital (deficit), March 31, 2009	$	(20,474,640	)	$	(2,095,985	)	$	(22,570,625	)
Net income (loss)		(33,243	)		(335	)		(33,578	)
Partners’ capital (deficit), March 31, 2010	$	(20,507,883	)	$	(2,096,320	)	$	(22,604,203	)
Distributions to partners		(1,500,000	)		-			(1,500,000	)
Net income (loss)		4,669,237			47,164			4,716,401
Partners’ capital (deficit), March 31, 2011	$	(17,338,646	)	$	(2,049,156	)	$	(19,387,802	)

(continued)

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, 2011 and 2010

	Limited			General
Series 15	partners			partner			Total
Partners’ capital (deficit), March 31, 2009	$	(3,648,853	)	$	(362,301	)	$	(4,011,154	)
Net income (loss)		371,527			3,753			375,280
Partners’ capital (deficit), March 31, 2010	$	(3,277,326	)	$	(358,548	)	$	(3,635,874	)
Distributions to partners		-			-			-
Net income (loss)		(104,464	)		(1,055	)		(105,519	)
Partners’ capital (deficit), March 31, 2011	$	(3,381,790	)	$	(359,603	)	$	(3,741,393	)

(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, 2011 and 2010

	Limited			General
Series 16	partners			partner			Total
Partners’ capital (deficit), March 31, 2009	$	(6,848,604	)	$	(540,500	)	$	(7,389,104	)
Net income (loss)		(384,537	)		(3,884	)		(388,421	)
Partners’ capital (deficit), March 31, 2010	$	(7,233,141	)	$	(544,384	)	$	(7,777,525	)
Distributions to partners		-			-			-
Net income (loss)		(269,279	)		(2,720	)		(271,999	)
Partners’ capital (deficit), March 31, 2011	$	(7,502,420	)	$	(547,104	)	$	(8,049,524	)

(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, 2011 and 2010

	Limited			General
Series 17	partners			partner			Total
Partners’ capital (deficit), March 31, 2009	$	(6,763,270	)	$	(493,344	)	$	(7,256,614	)
Net income (loss)		127,587			1,289			128,876
Partners’ capital (deficit), March 31, 2010	$	(6,635,683	)	$	(492,055	)	$	(7,127,738	)
Distributions to partners		-			-			-
Net income (loss)		453,139			4,577			457,716
Partners’ capital (deficit), March 31, 2011	$	(6,182,544	)	$	(487,478	)	$	(6,670,022	)

(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, 2011 and 2010

	Limited			General
Series 18	partners			partner			Total
Partners’ capital (deficit), March 31, 2009	$	(4,212,755	)	$	(355,914	)	$	(4,568,669	)
Net income (loss)		(256,897	)		(2,595	)		(259,492	)
Partners’ capital (deficit), March 31, 2010	$	(4,469,652	)	$	(358,509	)	$	(4,828,161	)
Distributions to partners		-			-			-
Net income (loss)		(209,732	)		(2,119	)		(211,851	)
Partners’ capital (deficit), March 31, 2011	$	(4,679,384	)	$	(360,628	)	$	(5,040,012	)

(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, 2011 and 2010

	Limited			General
Series 19	partners			partner			Total
Partners’ capital (deficit), March 31, 2009	$	998,842		$	(343,926	)	$	654,916
Net income (loss)		109,077			1,102			110,179
Partners’ capital (deficit), March 31, 2010	$	1,107,919		$	(342,824	)	$	765,095
Distributions to partners		(1,500,000	)		-			(1,500,000	)
Net income (loss)		4,799,573			48,481			4,848,054
Partners’ capital (deficit), March 31, 2011	$	4,407,492		$	(294,343	)	$	4,113,149

See notes to financial statements

F-21

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS

Years ended March 31, 2011 and 2010

	Total
	2011			2010
Cash flows from operating activities
Net income (loss)	$	4,716,401		$	(33,578	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships		(6,099,658	)		(1,474,600	)
Changes in assets and liabilities
Other assets		(47,900	)		(107,929	)
Accounts payable and accrued expenses		3,700			77,700
Accounts payable – affiliates		255,219			(77,400	)
Net cash provided by (used in) operating activities		(1,172,238	)		(1,615,807	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		6,086,120			1,552,932
Net cash provided by (used in) investing activities		6,086,120			1,552,932
Cash flows from financing activities
Distributions to partners		(1,500,000	)		-
Net cash provided by (used in) financing activity		(1,500,000	)		-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,413,882			(62,875	)
Cash and cash equivalents, beginning		2,049,777			2,112,652
Cash and cash equivalents, end	$	5,463,659		$	2,049,777
Supplemental schedule of noncash investing and financing activities:
The Fund has applied notes receivable and advances to its capital contribution obligation to operating limited partnerships.	$	-		$	30,000

(continued)

F-22

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF CASH FLOWS - CONTINUED

Years ended March 31, 2011 and 2010

	Series 15
	2011			2010
Cash flows from operating activities
Net income (loss)	$	(105,519	)	$	375,280
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships		(129,038	)		(661,300	)
Changes in assets and liabilities
Other assets		(16,900	)		(1,100	)
Accounts payable and accrued expenses		2,400			35,200
Accounts payable – affiliates		191,525			(553,315	)
Net cash provided by (used in) operating activities		(57,532	)		(805,235	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		78,000			661,300
Net cash provided by (used in) investing activities		78,000			661,300
Cash flows from financing activities
Distributions to partners		-			-
Net cash provided by (used in) financing activity		-			-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		20,468			(143,935	)
Cash and cash equivalents, beginning		278,978			422,913
Cash and cash equivalents, end	$	299,446		$	278,978
Supplemental schedule of noncash investing and financing activities:
The Fund has applied notes receivable and advances to its capital contribution obligation to operating limited partnerships.	$	-		$	-

(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, 2011 and 2010

	Series 16
	2011			2010
Cash flows from operating activities
Net income (loss)	$	(271,999	)	$	(388,421	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships		(204,525	)		(62,076	)
Changes in assets and liabilities
Other assets		-			(2,500	)
Accounts payable and accrued expenses		12,500			(10,000	)
Accounts payable – affiliates		259,748			355,070
Net cash provided by (used in) operating activities		(204,276	)		(107,927	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		204,525			62,076
Net cash provided by (used in) investing activities		204,525			62,076
Cash flows from financing activities
Distributions to partners		-			-
Net cash provided by (used in) financing activity		-			-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		249			(45,851	)
Cash and cash equivalents, beginning		416,557			462,408
Cash and cash equivalents, end	$	416,806		$	416,557
Supplemental schedule of noncash investing and financing activities:
The Fund has applied notes receivable and advances to its capital contribution obligation to operating limited partnerships.	$	-		$	-

(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, 2011 and 2010

	Series 17
	2011			2010
Cash flows from operating activities
Net income (loss)	$	457,716		$	128,876
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships		(819,215	)		(511,224	)
Changes in assets and liabilities
Other assets		(33,200	)		(53,700	)
Accounts payable and accrued expenses		36,000			12,500
Accounts payable – affiliates		(368,641	)		(116,588	)
Net cash provided by (used in) operating activities		(727,340	)		(540,136	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		856,715			541,127
Net cash provided by (used in) investing activities		856,715			541,127
Cash flows from financing activities
Distributions to partners		-			-
Net cash provided by (used in) financing activity		-			-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		129,375			991
Cash and cash equivalents, beginning		199,038			198,047
Cash and cash equivalents, end	$	328,413		$	199,038
Supplemental schedule of noncash investing and financing activities:
The Fund has applied notes receivable and advances to its capital contribution obligation to operating limited partnerships.	$	-		$	30,000

(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, 2011 and 2010

	Series 18
	2011			2010
Cash flows from operating activities
Net income (loss)	$	(211,851	)	$	(259,492	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships		-			21,000
Changes in assets and liabilities
Other assets		-			(25,000	)
Accounts payable and accrued expenses		(15,000	)		5,000
Accounts payable – affiliates		172,587			353,939
Net cash provided by (used in) operating activities
		(54,264	)		95,447
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships
		-			4,000
Net cash provided by (used in) investing activities
		-			4,000
Cash flows from financing activities
Distributions to partners
		-			-
Net cash provided by (used in) financing activity
		-			-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
		(54,264	)		99,447
Cash and cash equivalents, beginning
		347,309			247,862
Cash and cash equivalents, end
	$	293,045		$	347,309
Supplemental schedule of noncash investing and financing activities:
The Fund has applied notes receivable and advances to its capital contribution obligation to operating limited partnerships.	$	-		$	-

(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, 2011 and 2010

	Series 19
	2011			2010
Cash flows from operating activities
Net income (loss)	$	4,848,054		$	110,179
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Share of (income) losses from operating limited partnerships		(4,946,880	)		(261,000	)
Changes in assets and liabilities
Other assets		2,200			(25,629	)
Accounts payable and accrued expenses		(32,200	)		35,000
Accounts payable – affiliates		-			(116,506	)
Net cash provided by (used in) operating activities		(128,826	)		(257,956	)
Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		4,946,880			284,429
Net cash provided by (used in) investing activities		4,946,880			284,429
Cash flows from financing activities
Distributions to partners		(1,500,000	)		-
Net cash provided by (used in) financing activity		(1,500,000	)		-
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		3,318,054			26,473
Cash and cash equivalents, beginning		807,895			781,422
Cash and cash equivalents, end	$	4,125,949		$	807,895
Supplemental schedule of noncash investing and financing activities:
The Fund has applied notes receivable and advances to its capital contribution obligation to operating limited partnerships.	$	-		$	-

See notes to financial statements

F-27

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS

March 31, 2011 and 2010

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-28

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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

The BACs issued in each series at March 31, 2011 and 2010 are as follows:

	2011		2010
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

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-29

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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

Investments in Operating Limited Partnerships (Continued)

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:

	2011		2010
Series 15	$	36,759	$	36,759
Series 16		8,318		8,318
Series 17		173,285		145,304
Series 18		62,536		87,536
Series 19		25,120		25,120
	$	306,018	$	303,037

The Fund reviews its investment in operating limited partnerships for impairment whenever events or changes in circumstances indicate that the carrying amount of such investments may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the investment to the future net undiscounted cash flows expected to be generated by the operating limited partnerships including the low-income housing tax credits and the residual value upon sale or disposition of the equity interest in the operating limited partnerships.  If the investment is considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount of the investment exceeds the fair value of such investment.  During the years ended March 31, 2011 and 2010, the Fund did not record an impairment loss.

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-30

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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.

In accordance with the accounting guidance for the consolidation of variable interest entities, the Fund determines when it 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 has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party is required to consolidate the VIE.

The Fund determines whether an entity is a VIE and whether it is the primary beneficiary at the date of initial involvement with the entity. The Fund reassesses whether it is the primary beneficiary of a VIE on an ongoing basis based on changes in facts and circumstances. In determining whether it is the primary beneficiary, the partnership considers the purpose and activities of the VIE, including the variability and related risks the VIE incurs and transfers to other entities and their related parties. These factors are considered in determining whether the Fund has the power to direct activities of the VIE that most significantly impact the VIE’s economic performance and whether the Fund also has the obligation to absorb losses of or receive benefits from the VIE that could be potentially significant to the VIE. If the Fund determines that it is the primary beneficiary of the VIE, the VIE is consolidated within the partnership’s financial statements.

F-31

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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

Investments in Operating Limited Partnerships (Continued)

Based on this guidance, the operating limited partnerships in which the Fund invests meet the definition of a VIE. However, management does not consolidate the Fund’s interests in these VIEs under this guidance, as it is not considered to be the primary beneficiary. The Fund currently records the amount of its investment in these operating limited partnerships as an asset on its balance sheets, recognizes its share of the operating limited partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Fund’s balance in investment in operating limited partnerships, advances to operating limited partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Fund’s exposure to loss on these operating limited partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the operating general partners and their guarantee against credit recapture.

Income Taxes

The Fund has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns.  The Funds’s federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Fund is not required to take any tax positions in order to qualify as a pass-through entity. The Fund is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Fund has no other tax positions which must be considered for disclosure.

Cash Equivalents

Cash equivalents include money market accounts having original maturities at their acquisition dates of three months or less.

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.

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, 2011 and 2010

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

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, 2011 and 2010 are as follows:

	2011		2010
Series 15		3,870,500		3,870,500
Series 16		5,427,602		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
		21,994,302		21,996,102

Recent Accounting Pronouncements

In May 2009, the FASB issued guidance regarding subsequent events, which was subsequently updated in February 2010. This guidance established general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In particular, this guidance sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This guidance was effective for financial statements issued for fiscal years and interim periods ending after June 15, 2009, and was therefore adopted by the Fund for the quarter ended June 30, 2009. The adoption did not have a significant impact on the subsequent events that the Fund reports, either through recognition or disclosure, in the financial statements. In February 2010, the FASB amended its guidance on subsequent events to remove the requirement to disclose the date through which an entity has evaluated subsequent events, alleviating conflicts with current SEC guidance. This amendment was effective immediately and therefore the Fund did not include the disclosure in this Form 10-K.

In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of VIEs. The amended guidance modifies the consolidation model to one based on control and economics, and replaces the current quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment is effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2010 did not have a material effect on the Fund’s financial statements.

In June 2009, the FASB issued the Accounting Standards Codification (Codification).  Effective July 1, 2009, the Codification is the single source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with GAAP.  The Codification is intended to reorganize, rather than change, existing GAAP.  Accordingly, all references to currently existing GAAP have been removed and have been replaced with plain English explanations of the Fund’s accounting policies.  The adoption of the Codification did not have a material impact on the Fund’s financial position or results of operations.

F-33

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE B - RELATED PARTY TRANSACTIONS

During the years ended March 31, 2011 and 2010, 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, 2011 and 2010 is as follows:

	2011		2010
Series 15	$	241,525	$	271,685
Series 16		459,748		507,681
Series 17		383,859		433,412
Series 18		272,587		340,401
Series 19		184,280		242,958
	$	1,541,999	$	1,796,137

F-34

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

The reporting fees paid by the operating limited partnerships to the partnership for the years ended March 31, 2011 and 2010 are as follows:

	2011		2010
Series 15	$	73,850	$	55,323
Series 16		46,239		129,164
Series 17		66,586		110,245
Series 18		74,853		98,537
Series 19		79,999		108,898
	$	341,527	$	502,167

The partnership management fees paid for the years ended March 31, 2011 and 2010 are as follows:

	2011		2010
Series 15	$	50,000	$	825,000
Series 16		200,000		150,000
Series 17		752,500		550,000
Series 18		100,000		-
Series 19		184,280		357,257
	$	1,286,780	$	1,882,257

F-35

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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, 2011 and 2010 are as follows:

	2011		2010
Series 15	$	-	$	-
Series 16		-		-
Series 17		635,362		635,362
Series 18		158,334		158,334
Series 19		-		-
	$	793,696	$	793,696

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, 2011 and 2010 charged to each series’ operations are as follows:

	2011		2010
Series 15	$	17,329	$	18,013
Series 16		19,100		18,975
Series 17		16,835		16,935
Series 18		13,371		13,594
Series 19		13,456		12,969
	$	80,091	$	80,486

F-36

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

Accounts payable - affiliates at March 31, 2011 and 2010 represents fund management fees and operating limited partnership advances which are payable to Boston Capital Asset Management Limited Partnership.

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At March 31, 2011 and 2010, 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, 2011 and 2010 by series are as follows:

	2011		2010
Series 15		36		40
Series 16		43		46
Series 17		32		39
Series 18		24		26
Series 19		17		19
		152		170

F-37

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

During the year ended March 31, 2011 the Fund disposed of eighteen operating limited partnerships. A summary of the dispositions by Series for March 31, 2011 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition *		Disposition
Series 15		2		2	$	78,000	$	129,038
Series 16		2		1		204,525		204,525
Series 17		4		3		856,715		856,715
Series 18		1		1		-		-
Series 19		-		2		4,946,880		4,946,880
Total		9		9	$	6,086,120	$	6,137,158

* Fund proceeds from disposition does not include $51,038 recorded as receivable at March 31, 2011, for Series 15.

During the year ended March 31, 2010 the Fund disposed of fifteen operating limited partnerships of which one operating limited partnership was included in both Series 17 and 19. In addition the Fund received additional proceeds from one operating limited partnership disposed of in the prior year.

A summary of the dispositions by Series for March 31, 2010 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition		Disposition
Series 15		3		-	$	661,300	$	661,300
Series 16		1		1		62,076		62,076
Series 17		4		1		541,127		556,224
Series 18		3		-		4,000		4,000
Series 19		3		-		284,429		284,429
Total		14		2	$	1,552,932	$	1,568,029

F-38

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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, 2011 and 2010 by series are as follows:

	2011		2010
Series 15	$	-	$	-
Series 16		51,792		51,792
Series 17		22,798		22,798
Series 18		18,554		18,554
Series 19		-		-
	$	93,144	$	93,144

F-39

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2011 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	$	79,802,851		$	10,186,928		$	21,595,389
Acquisition costs of operating limited partnerships		10,732,830			1,386,834			2,609,852
Syndication costs from operating limited partnerships		(36,455	)		-			-
Cumulative distributions from operating limited partnerships		(586,752	)		(11,325	)		(418,260	)
Cumulative impairment loss in investment in operating limited partnerships		(20,818,310	)		(1,064,965	)		(5,544,345	)
Cumulative losses from operating limited partnerships		(69,094,164	)		(10,497,472	)		(18,242,636	)
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, 2011 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A)		(791,270	)		(26,246	)		(93,920	)
The Fund has recorded acquisition costs at March 31, 2011 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(1,933,084	)		(180,526	)		(453,483	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A)		1,178,753			157,946			-

F-40

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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)		(45,273,057	)		(9,412,754	)		(13,025,203	)
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		339,855			90,742			133,514
Cumulative impairment loss in investment in operating limited partnerships		20,818,310			1,064,965			5,544,345
Other		302,743			(54,741	)		471,590
Equity per operating limited partnerships’ combined financial statements	$	(25,357,750	)	$	(8,360,614	)	$	(7,423,157	)

F-41

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2011 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	$	19,124,559		$	17,505,925		$	11,390,050
Acquisition costs of operating limited partnerships		2,780,139			2,420,601			1,535,404
Syndication costs from operating limited partnerships		-			(36,455	)		-
Cumulative distributions from operating limited partnerships		(35,001	)		(118,167	)		(3,999	)
Cumulative impairment loss in investment in operating limited partnerships		(5,219,704	)		(4,376,821	)		(4,612,475	)
Cumulative losses from operating limited partnerships		(16,649,993	)		(15,395,083	)		(8,308,980	)
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, 2011 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2010 (see note A)		(600,642	)		(10,855	)		(59,607	)
The Fund has recorded acquisition costs at March 31, 2011 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(695,315	)		-			(603,760	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A)		527,327			442,289			51,191

F-42

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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)		(8,860,455	)		(8,595,458	)		(5,379,187	)
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		21,688			86,988			6,923
Cumulative impairment loss in investment in operating limited partnerships		5,219,704			4,376,821			4,612,475
Other		(8,649	)		(84,796	)		(20,661	)
Equity per operating limited partnerships’ combined financial statements	$	(4,396,342	)	$	(3,785,011	)	$	(1,392,626	)

F-43

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2010 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		98,859,593		$	12,819,530		$	26,201,560
Acquisition costs of operating limited partnerships		13,241,785			1,770,032			3,088,592
Syndication costs from operating limited partnerships		(36,455	)		-			-
Cumulative distributions from operating limited partnerships		(693,030	)		(11,825	)		(420,260	)
Cumulative impairment loss in investment in operating limited partnerships		(26,931,500	)		(1,356,328	)		(6,263,030	)
Cumulative losses from operating limited partnerships		(84,440,393	)		(13,221,409	)		(22,606,862	)
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, 2010 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2009 (see note A)		(928,337	)		(128,731	)		(93,920	)
The Fund has recorded acquisition costs at March 31, 2010 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(2,489,837	)		(349,715	)		(453,483	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A)		1,496,550			200,516			-

F-44

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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)		(44,022,988	)		(9,235,056	)		(12,781,607	)
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		385,987			114,743			137,989
Cumulative impairment loss in investment in operating limited partnerships		26,931,500			1,356,328			6,263,030
Other		615,739			(52,618	)		754,866
Equity per operating limited partnerships’ combined financial statements	$	(18,011,386	)	$	(8,094,533	)	$	(6,173,125	)

F-45

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2010 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	$	22,252,472		$	20,185,383		$	17,400,648
Acquisition costs of operating limited partnerships		3,143,082			2,808,165			2,431,914
Syndication costs from operating limited partnerships		-			(36,455	)		-
Cumulative distributions from operating limited partnerships		(85,149	)		(123,658	)		(52,138	)
Cumulative impairment loss in investment in operating limited partnerships		(6,196,124	)		(5,188,198	)		(7,927,820	)
Cumulative losses from operating limited partnerships		(19,114,281	)		(17,645,237	)		(11,852,604	)
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, 2010 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2009 (see note A)		(635,224	)		(10,855	)		(59,607	)
The Fund has recorded acquisition costs at March 31, 200 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(695,315	)		(387,564	)		(603,760	)
Cumulative losses from operating limited partnerships for the three months ended March 31, which the operating limited partnerships have not included in their capital as of December 31, due to different year ends (see note A)		634,831			449,306			211,897

F-46

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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)		(8,973,918	)		(8,314,781	)		(4,717,626	)
The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		39,344			86,988			6,923
Cumulative impairment loss in investment in operating limited partnerships		6,196,124			5,188,198			7,927,820
Other		(18,998	)		(32,658	)		(34,853	)
Equity per operating limited partnerships’ combined financial statements	$	(3,453,156	)	$	(3,021,366	)	$	2,730,794

F-47

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2010 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS
Buildings and improvements, net of accumulated depreciation	$	159,944,322		$	21,338,147		$	43,655,003
Land		15,765,658			2,190,079			3,568,271
Other assets		25,023,257			5,324,189			8,223,234
	$	200,733,237		$	28,852,415		$	55,446,508
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	198,735,567		$	37,063,877		$	50,582,486
Accounts payable and accrued expenses		13,193,049			345,286			7,992,506
Other liabilities		20,769,053			1,155,280			2,283,038
		232,697,669			38,564,443			60,858,030
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(25,357,750	)		(8,360,614	)		(7,423,157	)
Other partners		(6,606,682	)		(1,351,414	)		2,011,635
		(31,964,432	)		(9,712,028	)		(5,411,522	)
	$	200,733,237		$	28,852,415		$	55,446,508

F-48

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2010 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS
Buildings and improvements, net of accumulated depreciation	$	43,259,160		$	27,320,026		$	24,371,986
Land		4,929,363			2,668,829			2,409,116
Other assets		5,966,128			3,287,121			2,222,585
	$	54,154,651		$	33,275,976		$	29,003,687
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	57,233,929		$	31,866,134		$	21,989,141
Accounts payable and accrued expenses		1,379,820			2,250,002			1,225,435
Other liabilities		7,395,076			3,950,902			5,984,757
		66,008,825			38,067,038			29,199,333
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(4,396,342	)		(3,785,011	)		(1,392,626	)
Other partners		(7,457,832	)		(1,006,051	)		1,196,980
		(11,854,174	)		(4,791,062	)		(195,646	)
	$	54,154,651		$	33,275,976		$	29,003,687

F-49

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2009 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS
Buildings and improvements, net of accumulated depreciation	$	196,123,767		$	27,849,013		$	49,867,011
Land		18,540,436			2,879,979			3,822,160
Other assets		30,579,552			5,800,413			7,594,521
	$	245,243,755		$	36,529,405		$	61,283,692
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	230,292,752		$	43,476,735		$	55,332,310
Accounts payable and accrued expenses		14,297,753			563,377			7,799,116
Other liabilities		24,716,948			1,801,954			2,598,283
		269,307,453			45,842,066			65,729,709
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(18,011,386	)		(8,094,533	)		(6,173,125	)
Other partners		(6,052,312	)		(1,218,128	)		1,727,108
		(24,063,698	)		(9,312,661	)		(4,446,017	)
	$	245,243,755		$	36,529,405		$	61,283,692

F-50

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2009 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS
Buildings and improvements, net of accumulated depreciation	$	54,665,718		$	29,011,616		$	34,730,409
Land		5,514,615			2,865,466			3,458,216
Other assets		7,597,807			6,455,428			3,131,383
	$	67,778,140		$	38,332,510		$	41,320,008
LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)
Mortgages and construction loans payable	$	68,186,139		$	33,900,965		$	29,396,603
Accounts payable and accrued expenses		1,468,412			2,891,569			1,575,279
Other liabilities		7,983,772			5,980,123			6,352,816
		77,638,323			42,772,657			37,324,698
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(3,453,156	)		(3,021,366	)		2,730,794
Other partners		(6,407,027	)		(1,418,781	)		1,264,516
		(9,860,183	)		(4,440,147	)		3,995,310
	$	67,778,140		$	38,332,510		$	41,320,008

F-51

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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, 2010 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	38,689,748		$	6,201,920		$	10,466,265
Interest and other		1,069,481			120,367			265,451
		39,759,229			6,322,287			10,731,716
Expenses
Interest		7,539,872			899,718			1,785,456
Depreciation and amortization		10,011,353			1,659,606			2,732,785
Taxes and insurance		4,727,001			709,336			1,322,011
Repairs and maintenance		8,773,387			1,520,114			2,404,432
Operating expenses		14,697,346			2,453,854			3,921,198
Other expenses		569,852			15,950			74,003
		46,318,811			7,258,578			12,239,885
NET LOSS	$	(6,559,582	)	$	(936,291	)	$	(1,508,169	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(5,917,343	)	$	(877,260	)	$	(1,540,061	)
Net loss allocated to other partners	$	(642,239	)	$	(59,031	)	$	31,892

*  Amounts include $877,260, $1,540,061, $1,293,835, $1,535,917, and $670,270 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, 2011 and 2010

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, 2010 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	11,083,556		$	6,227,449		$	4,710,558
Interest and other		323,622			203,359			156,682
		11,407,178			6,430,808			4,867,240
Expenses
Interest		2,438,055			1,334,131			1,082,512
Depreciation and amortization		2,648,739			1,719,582			1,250,641
Taxes and insurance		1,370,364			823,526			501,764
Repairs and maintenance		2,648,583			1,441,007			759,251
Operating expenses		3,986,643			2,238,942			2,096,709
Other expenses		208,749			152,352			118,798
		13,301,133			7,709,540			5,809,675
NET LOSS	$	(1,893,955	)	$	(1,278,732	)	$	(942,435	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(1,293,835	)	$	(1,535,917	)	$	(670,270	)
Net loss allocated to other partners	$	(600,120	)	$	257,185		$	(272,165	)

* Amounts include $877,260, $1,540,061, $1,293,835, $1,535,917, and $670,270 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, 2011 and 2010

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, 2009 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	45,562,073		$	7,639,091		$	11,301,540
Interest and other		2,031,428			426,948			462,023
		47,593,501			8,066,039			11,763,563
Expenses
Interest		9,530,279			1,358,515			2,227,762
Depreciation and amortization		11,930,619			1,954,832			3,098,786
Taxes and insurance		5,955,318			934,273			1,524,170
Repairs and maintenance		10,243,333			1,818,579			2,581,914
Operating expenses		16,371,019			2,654,581			4,243,357
Other expenses		917,737			198,567			83,013
		54,948,305			8,919,347			13,759,002
NET LOSS	$	(7,354,804	)	$	(853,308	)	$	(1,995,439	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(6,451,640	)	$	(800,453	)	$	(1,895,937	)
Net income (loss) allocated to other partners	$	(903,164	)	$	(52,855	)	$	(99,502	)

*  Amounts include $800,453, $1,895,937, $1,433,608, $1,540,270, and $781,372 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, 2011 and 2010

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, 2009 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	12,994,827		$	6,683,807		$	6,942,808
Interest and other		398,793			602,874			140,790
		13,393,620			7,286,681			7,083,598
Expenses
Interest		2,843,386			1,466,060			1,634,556
Depreciation and amortization		3,223,827			1,999,819			1,653,355
Taxes and insurance		1,661,592			985,793			849,490
Repairs and maintenance		2,976,238			1,716,532			1,150,070
Operating expenses		4,592,100			2,366,927			2,514,054
Other expenses		85,942			285,597			264,618
		15,383,085			8,820,728			8,066,143
NET LOSS	$	(1,989,465	)	$	(1,534,047	)	$	(982,545	)
Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(1,433,608	)	$	(1,540,270	)	$	(781,372	)
Net income (loss) allocated to other partners	$	(555,857	)	$	6,223		$	(201,173	)

* Amounts include $800,453, $1,895,937, $1,433,608, $1,540,270, and $781,372 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, 2011 and 2010

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

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, 2011 is reconciled as follows:

	Total			Series 15			Series 16
Net income (loss) for financial reporting purposes	$	4,716,401		$	(105,519	)	$	(271,999	)
Operating limited partnership rents received in advance		(9,388	)		(6,210	)		(7,306	)
Accrued fund management fees not deducted (deducted) for tax purposes		255,219			191,525			259,748
Other		6,444,195			968,093			719,234
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(5,917,343	)		(877,260	)		(1,540,061	)
Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,192,258	)		(231,374	)		(331,455	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		(5,377,289	)		(145,560	)		(135,679	)
Income (loss) for tax return purposes, year ended December 31, 2010	$	(1,080,463	)	$	(206,305	)	$	(1,307,518	)

F-56

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D - 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, 2011 is reconciled as follows:

	Series 17			Series 18			Series 19
Net income (loss) for financial reporting purposes	$	457,716		$	(211,851	)	$	4,848,054
Operating limited partnership rents received in advance		4,128			-			-
Accrued fund management fees not deducted (deducted) for tax purposes		(368,641	)		172,587			-
Other		2,825,605			845,649			1,085,614
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(1,293,835	)		(1,535,917	)		(670,270	)
Excess of tax depreciation over book depreciation on operating limited partnership assets		(403,879	)		(143,306	)		(82,244	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		(75,823	)		5,213			(5,025,440	)
Income (loss) for tax return purposes, year ended December 31, 2010	$	1,145,271		$	(867,625	)	$	155,714

F-57

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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

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, 2010 is reconciled as follows:

	Total			Series 15			Series 16
Net income (loss) for financial reporting purposes	$	(33,578	)	$	375,280		$	(388,421	)
Operating limited partnership rents received in advance		5,205			(634	)		4,214
Accrued fund management fees not deducted (deducted) for tax purposes		(86,120	)		(553,315	)		357,681
Other		7,508,312			2,216,660			2,241,834
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(6,451,640	)		(800,453	)		(1,895,937	)
Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,580,444	)		(240,530	)		(341,344	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		(2,688,568	)		(1,444,584	)		(126,514	)
Income (loss) for tax return purposes, year ended December 31, 2009	$	(3,326,833	)	$	(447,576	)	$	(148,487	)

F-58

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D - 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, 2010 is reconciled as follows:

	Series 17			Series 18			Series 19
Net income (loss) for financial reporting purposes	$	128,876		$	(259,492	)	$	110,179
Operating limited partnership rents received in advance		1,625			-			-
Accrued fund management fees not deducted (deducted) for tax purposes		(116,588	)		340,401			(114,299	)
Other		969,855			513,817			1,566,146
Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(1,433,608	)		(1,540,270	)		(781,372	)
Excess of tax depreciation over book depreciation on operating limited partnership assets		(463,238	)		(247,550	)		(287,782	)
Difference due to fiscal year for book purposes and calendar year for tax purposes		(519,648	)		2,886			(600,708	)
Income (loss) for tax return purposes, year ended December 31, 2009	$	(1,432,726	)	$	(1,190,208	)	$	(107,836	)

F-59

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

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

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2011, are as follows:

	Total			Series 15			Series 16
Investments in operating limited partnerships - tax return December 31, 2010	$	(40,513,201	)	$	(11,515,636	)	$	(11,524,050	)
Estimated share of loss for the three months ended March 31, 2011		(1,178,753	)		(157,946	)		-
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		45,273,057			9,412,754			13,025,203
Impairment loss in investment in operating limited partnerships		(20,818,310	)		(1,064,965	)		(5,544,345	)
Historic tax credits		5,325,806			-			1,844,836
Other		11,911,401			3,325,793			2,198,356
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, 2011 and 2010

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (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, 2011, are as follows:

	Series 17			Series 18			Series 19
Investments in operating limited partnerships - tax return December 31, 2010	$	(7,361,346	)	$	(8,524,791	)	$	(1,587,378	)
Estimated share of loss for the three months ended March 31, 2011		(527,327	)		(442,289	)		(51,191	)
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		8,860,455			8,595,458			5,379,187
Impairment loss in investment in operating limited partnerships		(5,219,704	)		(4,376,821	)		(4,612,475	)
Historic tax credits		1,100,310			2,062,333			318,327
Other		3,147,612			2,686,110			553,530
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, 2011 and 2010

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

The differences between the investments in operating limited partnerships for tax purposes and financial statements purposes at March 31, 2010, are as follows:

	Total			Series 15			Series 16
Investments in operating limited partnerships - tax return December 31, 2009	$	(37,221,992	)	$	(11,311,336	)	$	(10,178,072	)
Estimated share of loss for the three months ended March 31, 2010		(1,496,550	)		(200,516	)		-
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		44,022,988			9,235,056			12,781,607
Impairment loss in investment in operating limited partnerships		(26,931,500	)		(1,356,328	)		(6,263,030	)
Historic tax credits		5,325,806			-			1,844,836
Other		16,301,248			3,633,124			1,814,659
Investments in operating limited partnerships - as reported	$	-		$	-		$	-

F-62

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE D - RECONCILIATION OF FINANCIAL STATEMENT NET INCOME (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, 2010, are as follows:

	Series 17			Series 18			Series 19
Investments in operating limited partnerships - tax return December 31, 2009	$	(7,635,269	)	$	(7,691,217	)	$	(406,098	)
Estimated share of loss for the three months ended March 31, 2010		(634,831	)		(449,306	)		(211,897	)
Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		8,973,918			8,314,781			4,717,626
Impairment loss in investment in operating limited partnerships		(6,196,124	)		(5,188,198	)		(7,927,820	)
Historic tax credits		1,100,310			2,062,333			318,327
Other		4,391,996			2,951,607			3,509,862
Investments in operating limited partnerships - as reported	$	-		$	-		$	-

F-63

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2011 and 2010

NOTE E - SUBSEQUENT EVENTS

Prior to and subsequent to March 31, 2011, the Fund has entered into agreements to either sell or transfer interests in six operating limited partnerships which are expected to close in the year ended March 31, 2012. The estimated sales prices and other terms for the dispositions of the operating limited partnerships have been determined. The estimated proceeds to be received for these six operating limited partnerships is $375,310. The estimated gain on sales of the operating limited partnerships is $255,310 and is expected to be recognized in the first quarter of fiscal year ending March 31, 2012.

NOTE F - 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, 2011.

NOTE G - FAIR VALUE OF FINANCIAL INSTRUMENTS

The Funds’s financial instruments relate to other assets and accounts payable - affiliates. Management has not disclosed the fair value of these 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 note B for disclosure of the carrying amount and terms of these financial instruments.

F-64