BOSTON CAPITAL TAX CREDIT FUND III L P - FORM 10-K - EX-13

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EXCEL - IDEA: XBRL DOCUMENT - BOSTON CAPITAL TAX CREDIT FUND III L P	Financial_Report.xls
10-K - 10-K - BOSTON CAPITAL TAX CREDIT FUND III L P	v315059_10k.htm
EX-32.A - EX-32.A - BOSTON CAPITAL TAX CREDIT FUND III L P	v315059_ex32a.htm
EX-31.B - EX-31.B - BOSTON CAPITAL TAX CREDIT FUND III L P	v315059_ex31b.htm
EX-31.A - EX-31.A - BOSTON CAPITAL TAX CREDIT FUND III L P	v315059_ex31a.htm
EX-32.B - EX-32.B - BOSTON CAPITAL TAX CREDIT FUND III L P	v315059_ex32b.htm

FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

BOSTON CAPITAL TAX CREDIT FUND III

LIMITED PARTNERSHIP -

SERIES 15 THROUGH SERIES 19

MARCH 31, 2012 AND 2011

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, 2012 and 2011, 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, 2012. 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 also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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, 2012 and 2011, 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, 2012, 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, 2012

F-3

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS

March 31, 2012 and 2011

	Total
	2012			2011
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	4,880,195		$	5,463,659
Other assets		14,400			75,938

	$	4,894,595		$	5,539,597

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	29,746		$	112,546
Accounts payable - affiliates		24,351,080			24,721,709
Capital contributions payable		91,360			93,144

		24,472,186			24,927,399

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, 2012 and 2011		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 21,996,102 issued and 21,992,202 and 21,994,302 outstanding at March 31, 2012 and 2011, respectively		(17,526,537	)		(17,338,646	)
General partner		(2,051,054	)		(2,049,156	)

		(19,577,591	)		(19,387,802	)

	$	4,894,595		$	5,539,597

(continued)

F-4

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2012 and 2011

	Series 15
	2012			2011
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	198,803		$	299,446
Other assets		-			69,038

	$	198,803		$	368,484

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	1,246		$	38,746
Accounts payable - affiliates		3,805,724			4,071,131
Capital contributions payable		-			-

		3,806,970			4,109,877

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, 2012 and 2011		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 3,870,500 issued 3,869,900 and 3,870,500 outstanding at March 31, 2012 and 2011, respectively		(3,249,896	)		(3,381,790	)
General partner		(358,271	)		(359,603	)

		(3,608,167	)		(3,741,393	)

	$	198,803		$	368,484

(continued)

F-5

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2012 and 2011

	Series 16
	2012			2011
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	360,565		$	416,806
Other assets		-			2,500

	$	360,565		$	419,306

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	5,000		$	12,500
Accounts payable - affiliates		8,521,279			8,404,538
Capital contributions payable		50,008			51,792

		8,576,287			8,468,830

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, 2012 and 2011		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,429,402 issued and 5,427,102 and 5,427,602 outstanding at March 31, 2012 and 2011, respectively		(7,666,956	)		(7,502,420	)
General partner		(548,766	)		(547,104	)

		(8,215,722	)		(8,049,524	)

	$	360,565		$	419,306

(continued)

F-6

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2012 and 2011

	Series 17
	2012			2011
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	344,436		$	328,413
Other assets		4,400			4,400

	$	348,836		$	332,813

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	18,500		$	48,500
Accounts payable - affiliates		7,003,068			6,931,537
Capital contributions payable		22,798			22,798

		7,044,366			7,002,835

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, 2012 and 2011		-			-
Limited partners
Units of beneficial interest of the limited partnership interest of the assignor limited partner, 5,000,000 issued 4,999,000 and 5,000,000 outstanding at March 31, 2012 and 2011, respectively		(6,207,797	)		(6,182,544	)
General partner		(487,733	)		(487,478	)

		(6,695,530	)		(6,670,022	)

	$	348,836		$	332,813

(continued)

F-7

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2012 and 2011

	Series 18
	2012			2011
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	164,525		$	293,045
Other assets		10,000			-

	$	174,525		$	293,045

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	5,000		$	-
Accounts payable - affiliates		5,021,009			5,314,503
Capital contributions payable		18,554			18,554

		5,044,563			5,333,057

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, 2012 and 2011		-			-
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, 2012 and 2011		(4,511,110	)		(4,679,384	)
General partner		(358,928	)		(360,628	)

		(4,870,038	)		(5,040,012	)

	$	174,525		$	293,045

(continued)

F-8

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

BALANCE SHEETS - CONTINUED

March 31, 2012 and 2011

	Series 19
	2012			2011
ASSETS

OTHER ASSETS
Cash and cash equivalents	$	3,811,866		$	4,125,949
Other assets		-			-

	$	3,811,866		$	4,125,949

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

LIABILITIES
Accounts payable and accrued expenses	$	-		$	12,800
Accounts payable - affiliates		-			-
Capital contributions payable		-			-

		-			12,800

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, 2012 and 2011		-			-
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, 2012 and 2011		4,109,222			4,407,492
General partner		(297,356	)		(294,343	)

		3,811,866			4,113,149

	$	3,811,866		$	4,125,949

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, 2012 and 2011

	Total
	2012		2011
Income
Interest income	$	26,922	$	21,951
Other income		30,350		101,777

Total income		57,272		123,728

Share of income from operating limited partnerships		820,440		6,099,658

Expenses
Professional fees		160,346		181,876
Partnership management fee		541,340		1,200,472
General and administrative expenses		103,985		124,637

		805,671		1,506,985

NET INCOME (LOSS)	$	72,041	$	4,716,401

Net income (loss) allocated to general partner	$	720	$	47,164

Net income (loss) allocated to limited partners	$	71,321	$	4,669,237

Net income (loss) per BAC	$	0.00	$	0.21

(continued)

F-10

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2012 and 2011

	Series 15
	2012		2011
Income
Interest income	$	1,439	$	2,201
Other income		1,318		2,313

Total income		2,757		4,514

Share of income from operating limited partnerships		325,050		129,038

Expenses
Professional fees		35,926		40,864
Partnership management fee		138,632		167,675
General and administrative expenses		20,023		30,532

		194,581		239,071

NET INCOME (LOSS)	$	133,226	$	(105,519	)

Net income (loss) allocated to general partner	$	1,332	$	(1,055	)

Net income (loss) allocated to limited partners	$	131,894	$	(104,464	)

Net income (loss) per BAC	$	0.03	$	(0.03	)

(continued)

F-11

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2012 and 2011

	Series 16
	2012			2011
Income
Interest income	$	1,848		$	3,285
Other income		2,024			3,911

Total income		3,872			7,196

Share of income from operating limited partnerships		148,294			204,525

Expenses
Professional fees		39,313			40,659
Partnership management fee		254,665			413,509
General and administrative expenses		24,386			29,552

		318,364			483,720

NET INCOME (LOSS)	$	(166,198	)	$	(271,999	)

Net income (loss) allocated to general partner	$	(1,662	)	$	(2,720	)

Net income (loss) allocated to limited partners	$	(164,536	)	$	(269,279	)

Net income (loss) per BAC	$	(0.03	)	$	(0.05	)

(continued)

F-12

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2012 and 2011

	Series 17
	2012			2011
Income
Interest income	$	1,642		$	5,552
Other income		16,209			12,574

Total income		17,851			18,126

Share of income from operating limited partnerships		247,646			819,215

Expenses
Professional fees		34,300			37,427
Partnership management fee		234,245			317,273
General and administrative expenses		22,460			24,925

		291,005			379,625

NET INCOME (LOSS)	$	(25,508	)	$	457,716

Net income (loss) allocated to general partner	$	(255	)	$	4,577

Net income (loss) allocated to limited partners	$	(25,253	)	$	453,139

Net income (loss) per BAC	$	(0.01	)	$	0.09

(continued)

F-13

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2012 and 2011

	Series 18
	2012			2011
Income
Interest income	$	630		$	2,237
Other income		10,485			31,276

Total income		11,115			33,513

Share of income from operating limited partnerships		-			-

Expenses
Professional fees		26,832			27,866
Partnership management fee		(203,875	)		197,734
General and administrative expenses		18,184			19,764

		(158,859	)		245,364

NET INCOME (LOSS)	$	169,974		$	(211,851	)

Net income (loss) allocated to general partner	$	1,700		$	(2,119	)

Net income (loss) allocated to limited partners	$	168,274		$	(209,732	)

Net income (loss) per BAC	$	0.05		$	(0.06	)

(continued)

F-14

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

STATEMENTS OF OPERATIONS - CONTINUED

Years ended March 31, 2012 and 2011

	Series 19
	2012			2011
Income
Interest income	$	21,363		$	8,676
Other income		314			51,703

Total income		21,677			60,379

Share of income from operating limited partnerships		99,450			4,946,880

Expenses
Professional fees		23,975			35,060
Partnership management fee		117,673			104,281
General and administrative expenses		18,932			19,864

		160,580			159,205

NET INCOME (LOSS)	$	(39,453	)	$	4,848,054

Net income (loss) allocated to general partner	$	(395	)	$	48,481

Net income (loss) allocated to limited partners	$	(39,058	)	$	4,799,573

Net income (loss) per BAC	$	(0.01	)	$	1.18

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, 2012 and 2011

	Limited			General
Total	partners			partner			Total

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	)

Distributions to partners		(259,212	)		(2,618	)		(261,830	)

Net income (loss)		71,321			720			72,041

Partners’ capital (deficit), March 31, 2012	$	(17,526,537	)	$	(2,051,054	)	$	(19,577,591	)

(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, 2012 and 2011

	Limited			General
Series 15	partners			partner			Total

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	)

Distributions to partners		-			-			-

Net income (loss)		131,894			1,332			133,226

Partners’ capital (deficit), March 31, 2012	$	(3,249,896	)	$	(358,271	)	$	(3,608,167	)

(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, 2012 and 2011

	Limited			General
Series 16	partners			partner			Total

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	)

Distributions to partners		-			-			-

Net income (loss)		(164,536	)		(1,662	)		(166,198	)

Partners’ capital (deficit), March 31, 2012	$	(7,666,956	)	$	(548,766	)	$	(8,215,722	)

(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, 2012 and 2011

	Limited			General
Series 17	partners			partner			Total

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	)

Distributions to partners		-			-			-

Net income (loss)		(25,253	)		(255	)		(25,508	)

Partners’ capital (deficit), March 31, 2012	$	(6,207,797	)	$	(487,733	)	$	(6,695,530	)

(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, 2012 and 2011

	Limited			General
Series 18	partners			partner			Total

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	)

Distributions to partners		-			-			-

Net income (loss)		168,274			1,700			169,974

Partners’ capital (deficit), March 31, 2012	$	(4,511,110	)	$	(358,928	)	$	(4,870,038	)

(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, 2012 and 2011

	Limited			General
Series 19	partners			partner			Total

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

Distributions to partners		(259,212	)		(2,618	)		(261,830	)

Net income (loss)		(39,058	)		(395	)		(39,453	)

Partners’ capital (deficit), March 31, 2012	$	4,109,222		$	(297,356	)	$	3,811,866

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, 2012 and 2011

	Total
	2012			2011
Cash flows from operating activities
Net income (loss)	$	72,041		$	4,716,401
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships		(820,440	)		(6,099,658	)
Changes in assets and liabilities
Other assets		61,538			(47,900	)
Accounts payable and accrued expenses		(82,800	)		3,700
Accounts payable - affiliates		(370,629	)		255,219

Net cash used in operating activities		(1,140,290	)		(1,172,238	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		818,656			6,086,120

Net cash provided by investing activities		818,656			6,086,120

Cash flows from financing activities
Distributions to partners		(261,830	)		(1,500,000	)

Net cash used in financing activity		(261,830	)		(1,500,000	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(583,464	)		3,413,882

Cash and cash equivalents, beginning		5,463,659			2,049,777

Cash and cash equivalents, end	$	4,880,195		$	5,463,659

(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, 2012 and 2011

	Series 15
	2012			2011
Cash flows from operating activities
Net income (loss)	$	133,226		$	(105,519	)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships		(325,050	)		(129,038	)
Changes in assets and liabilities
Other assets		69,038			(16,900	)
Accounts payable and accrued expenses		(37,500	)		2,400
Accounts payable - affiliates		(265,407	)		191,525

Net cash used in operating activities		(425,693	)		(57,532	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		325,050			78,000

Net cash provided by investing activities		325,050			78,000

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activity		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(100,643	)		20,468

Cash and cash equivalents, beginning		299,446			278,978

Cash and cash equivalents, end	$	198,803		$	299,446

(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, 2012 and 2011

	Series 16
	2012			2011
Cash flows from operating activities
Net income (loss)	$	(166,198	)	$	(271,999	)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships		(148,294	)		(204,525	)
Changes in assets and liabilities
Other assets		2,500			-
Accounts payable and accrued expenses		(7,500	)		12,500
Accounts payable - affiliates		116,741			259,748

Net cash used in operating activities		(202,751	)		(204,276	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		146,510			204,525

Net cash provided by investing activities		146,510			204,525

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activity		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(56,241	)		249

Cash and cash equivalents, beginning		416,806			416,557

Cash and cash equivalents, end	$	360,565		$	416,806

(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, 2012 and 2011

	Series 17
	2012			2011
Cash flows from operating activities
Net income (loss)	$	(25,508	)	$	457,716
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships		(247,646	)		(819,215	)
Changes in assets and liabilities
Other assets		-			(33,200	)
Accounts payable and accrued expenses		(30,000	)		36,000
Accounts payable - affiliates		71,531			(368,641	)

Net cash used in operating activities		(231,623	)		(727,340	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		247,646			856,715

Net cash provided by investing activities		247,646			856,715

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activity		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		16,023			129,375

Cash and cash equivalents, beginning		328,413			199,038

Cash and cash equivalents, end	$	344,436		$	328,413

(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, 2012 and 2011

	Series 18
	2012			2011
Cash flows from operating activities
Net income (loss)	$	169,974		$	(211,851	)
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships		-			-
Changes in assets and liabilities
Other assets		(10,000	)		-
Accounts payable and accrued expenses		5,000			(15,000	)
Accounts payable - affiliates		(293,494	)		172,587

Net cash used in operating activities		(128,520	)		(54,264	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		-			-

Net cash provided by investing activities		-			-

Cash flows from financing activities
Distributions to partners		-			-

Net cash used in financing activity		-			-

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(128,520	)		(54,264	)

Cash and cash equivalents, beginning		293,045			347,309

Cash and cash equivalents, end	$	164,525		$	293,045

(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, 2012 and 2011

	Series 19
	2012			2011
Cash flows from operating activities
Net income (loss)	$	(39,453	)	$	4,848,054
Adjustments to reconcile net income (loss) to net cash used in operating activities
Share of income from operating limited partnerships		(99,450	)		(4,946,880	)
Changes in assets and liabilities
Other assets		-			2,200
Accounts payable and accrued expenses		(12,800	)		(32,200	)
Accounts payable - affiliates		-			-

Net cash used in operating activities		(151,703	)		(128,826	)

Cash flows from investing activities
Proceeds from disposition of operating limited partnerships		99,450			4,946,880

Net cash provided by investing activities		99,450			4,946,880

Cash flows from financing activities
Distributions to partners		(261,830	)		(1,500,000	)

Net cash used in financing activity		(261,830	)		(1,500,000	)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(314,083	)		3,318,054

Cash and cash equivalents, beginning		4,125,949			807,895

Cash and cash equivalents, end	$	3,811,866		$	4,125,949

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, 2012 and 2011

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, 2012 and 2011

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

The BACs issued in each series at March 31, 2012 and 2011 are as follows:

	2012		2011
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, 2012 and 2011

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:

	2012		2011
Series 15	$	36,759	$	36,759
Series 16		8,318		8,318
Series 17		60,785		173,285
Series 18		62,536		62,536
Series 19		25,120		25,120
	$	193,518	$	306,018

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, 2012 and 2011, 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, 2012 and 2011

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, 2012 and 2011

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.

F-32

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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

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.

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, 2012 and 2011 are as follows:

	2012		2011
Series 15		3,869,900		3,870,500
Series 16		5,427,102		5,427,602
Series 17		4,999,000		5,000,000
Series 18		3,616,200		3,616,200
Series 19		4,080,000		4,080,000
		21,992,202		21,994,302

Recent Accounting Pronouncements

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.

F-33

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE B - RELATED PARTY TRANSACTIONS

During the years ended March 31, 2012 and 2011, 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 partnership management fees net of reporting fees incurred and the reporting fees paid by the Operating Partnerships for the years ended March 31, 2012 and 2011, are as follows:

F-34

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

	2012
	Gross Partnership Management Fee		Asset Management & Reporting Fee		Partnership Management Fee net of Asset Management & Reporting Fee
Series 15	$	199,593	$	60,961	$	138,632
Series 16		346,741		92,076		254,665
Series 17		316,531		82,286		234,245
Series 18		264,840		468,715		(203,875	)
Series 19		152,661		34,988		117,673
	$	1,280,366	$	739,026	$	541,340

	2011
	Gross Partnership Management Fee		Asset Management & Reporting Fee		Partnership Management Fee net of Asset Management & Reporting Fee
Series 15	$	241,525	$	73,850	$	167,675
Series 16		459,748		46,239		413,509
Series 17		383,859		66,586		317,273
Series 18		272,587		74,853		197,734
Series 19		184,280		79,999		104,281
	$	1,541,999	$	341,527	$	1,200,472

The partnership management fees paid for the years ended March 31, 2012 and 2011 are as follows:

	2012		2011
Series 15	$	465,000	$	50,000
Series 16		230,000		200,000
Series 17		245,000		752,500
Series 18		400,000		100,000
Series 19		152,661		184,280
	$	1,492,661	$	1,286,780

F-35

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

All partnership management fees will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the partnership's interests in operating limited partnerships. As of March 31, 2012 and 2011, total partnership management fees accrued were $23,715,718 and $23,928,013, respectively.

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. During the year ended March 31, 2012 there were no advances, however a payment in the amount of $158,334 was paid by Series 18. The total advances from the affiliate of the general partner to the Operating Partnerships as of March 31, 2012 and 2011 are as follows:

	2012		2011
Series 15	$	-	$	-
Series 16		-		-
Series 17		635,362		635,362
Series 18		-		158,334
Series 19		-		-
	$	635,362	$	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, 2012 and 2011 charged to each series’ operations are as follows:

	2012		2011
Series 15	$	13,372	$	17,329
Series 16		15,446		19,100
Series 17		13,880		16,835
Series 18		12,269		13,371
Series 19		12,342		13,456
	$	67,309	$	80,091

F-36

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE B - RELATED PARTY TRANSACTIONS (CONTINUED)

Accounts payable - affiliates at March 31, 2012 and 2011 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, 2012 and 2011, 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, 2012 and 2011 by series are as follows:

	2012		2011
Series 15		30		36
Series 16		38		43
Series 17		27		32
Series 18		23		24
Series 19		16		17
		134		152

F-37

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (CONTINUED)

During the year ended March 31, 2012 the Fund disposed of eighteen operating limited partnerships and received additional proceeds from one operating limited partnership disposed of in the prior year.

A summary of the dispositions by Series for March 31, 2012 is as follows:

	Operating		Sale of
	Partnership		Underlying		Partnership
	Interest		Operating		Proceeds from		Gain/(Loss) on
	Transferred		Partnership		Disposition *		Disposition
Series 15		5		1	$	325,050	$	325,050
Series 16		5		-		146,510		148,294
Series 17		4		1		247,646		247,646
Series 18		-		1		-		-
Series 19		1		-		99,450		99,450
Total		15		3	$	818,656	$	820,440

* Fund proceeds from disposition does not include the following amount which was due to a writeoff of capital contribution payable of $1,784 for Series 16.

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.

F-38

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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, 2012 and 2011 by series are as follows:

	2012		2011
Series 15	$	-	$	-
Series 16		50,008		51,792
Series 17		22,798		22,798
Series 18		18,554		18,554
Series 19		-		-
	$	91,360	$	93,144

F-39

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2012 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	$	67,188,022		$	9,051,543		$	13,600,679

Acquisition costs of operating limited partnerships		9,171,431			1,218,899			1,788,508

Syndication costs from operating limited partnerships		(36,455	)		-			-

Cumulative distributions from operating limited partnerships		(188,000	)		(10,831	)		(26,120	)

Cumulative impairment loss in investment in operating limited partnerships		(17,303,883	)		(867,409	)		(2,861,385	)

Cumulative losses from operating limited partnerships		(58,831,115	)		(9,392,202	)		(12,501,682	)

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, 2012 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2011 (see note A)		(348,203	)		(14,246	)		(93,920	)

The Fund has recorded acquisition costs at March 31, 2012 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(1,556,118	)		(180,526	)		(121,307	)

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)		1,012,965			136,871			-

F-40

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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)		(40,003,128	)		(8,366,571	)		(9,860,741	)

The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		314,521			86,996			130,181

Cumulative impairment loss in investment in operating limited partnerships		17,303,883			867,409			2,861,385

Other		271,864			(41,552	)		438,273

Equity per operating limited partnerships’ combined financial statements	$	(23,004,216	)	$	(7,511,619	)	$	(6,646,129	)

F-41

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The Fund’s investments in operating limited partnerships at March 31, 2012 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	$	15,940,952		$	17,186,357		$	11,408,491

Acquisition costs of operating limited partnerships		2,328,579			2,310,366			1,525,079

Syndication costs from operating limited partnerships		-			(36,455	)		-

Cumulative distributions from operating limited partnerships		(28,883	)		(118,167	)		(3,999	)

Cumulative impairment loss in investment in operating limited partnerships		(4,596,588	)		(4,363,063	)		(4,615,438	)

Cumulative losses from operating limited partnerships		(13,644,060	)		(14,979,038	)		(8,314,133	)

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, 2012 which have not been included in the partnership’s capital account included in the operating limited partnerships’ financial statements as of December 31, 2011 (see note A)		(174,842	)		(5,588	)		(59,607	)

The Fund has recorded acquisition costs at March 31, 2012 which have not been recorded in the net assets of the operating limited partnerships (see note A)		(650,525	)		-			(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)		467,481			357,422			51,191

F-42

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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)		(6,800,814	)		(9,565,423	)		(5,409,579	)

The Fund has recorded low-income housing tax credit adjusters not recorded by operating limited partnerships (see note A)		14,732			75,689			6,923

Cumulative impairment loss in investment in operating limited partnerships		4,596,588			4,363,063			4,615,438

Other		(9,562	)		(92,977	)		(22,318	)

Equity per operating limited partnerships’ combined financial statements	$	(2,556,942	)	$	(4,867,814	)	$	(1,421,712	)

F-43

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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-44

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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-45

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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-46

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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-47

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2011 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS

	Total			Series 15			Series 16
ASSETS

Buildings and improvements, net of accumulated depreciation	$	129,457,020		$	16,874,324		$	28,711,071

Land		13,214,525			1,712,879			2,182,728

Other assets		23,094,868			4,812,799			7,265,124

	$	165,766,413		$	23,400,002		$	38,158,923

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	171,925,646		$	30,686,298		$	39,442,851

Accounts payable and accrued expenses		8,024,363			343,231			3,412,569

Other liabilities		16,888,786			982,737			1,433,900

		196,838,795			32,012,266			44,289,320
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(23,004,216	)		(7,511,619	)		(6,646,129	)
Other partners		(8,068,166	)		(1,100,645	)		515,732

		(31,072,382	)		(8,612,264	)		(6,130,397	)

	$	165,766,413		$	23,400,002		$	38,158,923

F-48

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE C - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS (Continued)

The combined summarized balance sheets of the operating limited partnerships at December 31, 2011 are as follows:

COMBINED SUMMARIZED BALANCE SHEETS - CONTINUED

	Series 17			Series 18			Series 19
ASSETS

Buildings and improvements, net of accumulated depreciation	$	35,549,893		$	25,218,279		$	23,103,453

Land		4,296,381			2,627,321			2,395,216

Other assets		5,512,378			3,235,664			2,268,903

	$	45,358,652		$	31,081,264		$	27,767,572

LIABILITIES AND PARTNERS’ CAPITAL (DEFICIT)

Mortgages and construction loans payable	$	49,568,081		$	31,300,678		$	20,927,738

Accounts payable and accrued expenses		1,188,711			2,142,120			937,732

Other liabilities		6,239,819			2,789,969			5,442,361

		56,996,611			36,232,767			27,307,831
PARTNERS’ CAPITAL (DEFICIT)
Boston Capital Tax Credit Fund III L.P.		(2,556,942	)		(4,867,814	)		(1,421,712	)
Other partners		(9,081,017	)		(283,689	)		1,881,453

		(11,637,959	)		(5,151,503	)		459,741

	$	45,358,652		$	31,081,264		$	27,767,572

F-49

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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-50

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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-51

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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, 2011 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS

	Total			Series 15			Series 16
Revenue
Rental	$	33,706,796		$	5,392,708		$	7,295,567
Interest and other		855,012			156,911			155,808

		34,561,808			5,549,619			7,451,375
Expenses
Interest		6,075,031			767,359			1,141,429
Depreciation and amortization		8,244,794			1,448,769			1,812,739
Taxes and insurance		3,999,447			677,808			889,025
Repairs and maintenance		7,908,133			1,198,185			1,745,900
Operating expenses		12,640,384			2,134,670			2,744,393
Other expenses		319,101			43,422			38,647

		39,186,890			6,270,213			8,372,133

NET LOSS	$	(4,625,082	)	$	(720,594	)	$	(920,758	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(4,045,294	)	$	(730,809	)	$	(1,010,045	)

Net loss allocated to other partners	$	(579,788	)	$	10,215		$	89,287

Amounts include $730,809, $1,010,045, $733,673, $1,197,176, and $373,591 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, 2012 and 2011

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, 2011 are as follows:

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS - CONTINUED

	Series 17			Series 18			Series 19
Revenue
Rental	$	9,984,884		$	6,242,288		$	4,791,349
Interest and other		290,316			151,518			100,459

		10,275,200			6,393,806			4,891,808
Expenses
Interest		1,873,449			1,227,151			1,065,643
Depreciation and amortization		2,207,942			1,558,316			1,217,028
Taxes and insurance		1,109,017			823,809			499,788
Repairs and maintenance		2,426,319			1,668,122			869,607
Operating expenses		3,482,269			2,311,943			1,967,109
Other expenses		43,182			72,572			121,278

		11,142,178			7,661,913			5,740,453

NET LOSS	$	(866,978	)	$	(1,268,107	)	$	(848,645	)

Net loss allocated to Boston Capital Tax Credit Fund III L.P.*	$	(733,673	)	$	(1,197,176	)	$	(373,591	)

Net loss allocated to other partners	$	(133,305	)	$	(70,931	)	$	(475,054	)

F-53

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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 income (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-54

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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 income (loss) allocated to other partners	$	(600,120	)	$	257,185		$	(272,165	)

F-55

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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, 2012 is reconciled as follows:

	Total			Series 15			Series 16

Net income (loss) for financial reporting purposes	$	72,041		$	133,226		$	(166,198	)

Operating limited partnership rents received in advance		(10,156	)		2,199			(1,715	)

Accrued fund management fees not deducted (deducted) for tax purposes		(212,295	)		(265,407	)		116,741

Other		9,652,956			2,488,615			650,482

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(4,045,294	)		(730,809	)		(1,010,045	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(1,178,940	)		(243,438	)		(376,657	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(722,510	)		472,240			(51,316	)

Income (loss) for tax return purposes, year ended December 31, 2011	$	3,555,802		$	1,856,626		$	(838,708	)

F-56

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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

	Series 17			Series 18			Series 19

Net income (loss) for financial reporting purposes	$	(25,508	)	$	169,974		$	(39,453	)

Operating limited partnership rents received in advance		(10,640	)		-			-

Accrued fund management fees not deducted (deducted) for tax purposes		71,531			(135,160	)		-

Other		2,197,089			(428	)		4,317,198

Operating limited partnership losses not recognized for financial reporting purposes under equity method of accounting		(733,673	)		(1,197,176	)		(373,591	)

Excess of tax depreciation over book depreciation on operating limited partnership assets		(237,315	)		(245,477	)		(76,053	)

Difference due to fiscal year for book purposes and calendar year for tax purposes		(1,011,334	)		(28,923	)		(103,177	)

Income (loss) for tax return purposes, year ended December 31, 2011	$	250,150		$	(1,437,190	)	$	3,724,924

F-57

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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

	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-58

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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

	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-59

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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, 2012, are as follows:

	Total			Series 15			Series 16

Investments in operating limited partnerships - tax return December 31, 2011	$	(39,842,699	)	$	(9,915,268	)	$	(12,422,684	)

Estimated share of loss for the three months ended March 31, 2012		(1,012,965	)		(136,871	)		-

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		40,003,128			8,366,571			9,860,741

Impairment loss in investment in operating limited partnerships		(17,303,883	)		(867,409	)		(2,861,385	)

Historic tax credits		5,325,806			-			1,844,836

Other		12,830,613			2,552,977			3,578,492

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, 2012 and 2011

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, 2012, are as follows:

	Series 17			Series 18			Series 19

Investments in operating limited partnerships - tax return December 31, 2011	$	(6,285,101	)	$	(9,967,872	)	$	(1,251,774	)

Estimated share of loss for the three months ended March 31, 2012		(467,481	)		(357,422	)		(51,191	)

Add back operating limited partnership losses not recognized for financial reporting purposes under the equity method		6,800,814			9,565,423			5,409,579

Impairment loss in investment in operating limited partnerships		(4,596,588	)		(4,363,063	)		(4,615,438	)

Historic tax credits		1,100,310			2,062,333			318,327

Other		3,448,046			3,060,601			190,497

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, 2012 and 2011

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-62

Boston Capital Tax Credit Fund III L.P. -

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

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-63

Boston Capital Tax Credit Fund III Limited Partnership

Series 15 through Series 19

NOTES TO FINANCIAL STATEMENTS - CONTINUED

March 31, 2012 and 2011

NOTE E - 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, 2012.

NOTE F - 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

BOSTON CAPITAL TAX CREDIT FUND III L P - FORM 10-K - EX-13 - June 29, 2012

Attached files

BOSTON CAPITAL TAX CREDIT FUND III L P Reports