Capital & Income -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21506

Name of Fund: BlackRock Enhanced Capital and Income Fund, Inc. (CII)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock
Enhanced Capital and Income Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536.
Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 12/31/2008

Date of reporting period: 01/01/2008 – 03/31/2008

Item 1 – Schedule of Investments

BlackRock Enhanced Capital and Income Fund, Inc.     
Schedule of Investments as of March 31, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
Industry     Shares Common Stocks        Value 
 
 
 
Aerospace & Defense - 6.1%    45,200    Honeywell International, Inc.    $ 2,550,184 
    33,500    Lockheed Martin Corp.        3,326,550 
    46,800    Northrop Grumman Corp.        3,641,508 
    80,600    Raytheon Co.        5,207,566 
               
                14,725,808 
 
 
 
 
Capital Markets - 4.0%    109,125    The Bank of New York Mellon Corp.    4,553,786 
    111,900    Morgan Stanley        5,113,830 
               
                9,667,616 
 
 
 
 
Chemicals - 2.7%    24,600    The Dow Chemical Co.        906,510 
    118,000    E.I. du Pont de Nemours & Co.    5,517,680 
           
                6,424,190 
 
 
 
 
Commercial Banks - 0.5%    40,900    Wells Fargo & Co.        1,190,190 
 
 
 
 
Computers & Peripherals - 5.1%    87,500    Hewlett-Packard Co.        3,995,250 
    58,600    International Business Machines Corp.    6,747,204 
    109,600    Sun Microsystems, Inc. (a)        1,702,088 
               
                12,444,542 
 
 
 
 
Diversified Financial    111,227    Bank of America Corp.        4,216,616 
Services - 5.6%    98,600    Citigroup, Inc.        2,112,012 
    169,472    JPMorgan Chase & Co.        7,278,823 
               
                13,607,451 
 
 
 
 
Diversified Telecommunication    129,370    AT&T Inc.        4,954,871 
Services - 4.6%    631,200    Qwest Communications International Inc.    2,859,336 
    93,900    Verizon Communications, Inc.    3,422,655 
           
                11,236,862 
 
 
 
 
Electric Utilities - 3.4%    68,000    FPL Group, Inc.        4,266,320 
    112,700    The Southern Co.        4,013,247 
               
                8,279,567 
 
 
 
 
Electronic Equipment &    14,500    Tyco Electronics Ltd.        497,640 
Instruments - 0.2%                 
 
 
 
 
Energy Equipment &    161,900    BJ Services Co.        4,615,769 
Services - 5.0%    144,800    Halliburton Co.        5,694,984 
    13,730    Transocean, Inc.        1,856,296 
               
                12,167,049 
 
 
 
 
Food Products - 7.4%    38,700    Archer-Daniels-Midland Co.    1,592,892 
    80,100    General Mills, Inc.        4,796,388 
    164,000    Kraft Foods, Inc.        5,085,640 
    193,000    Unilever NV (b)        6,509,890 
               
                17,984,810 
 
 
 
 
Health Care Equipment &    35,900    Baxter International, Inc.        2,075,738 
Supplies - 2.1%    66,525    Covidien Ltd.        2,943,731 
               
                5,019,469 
 
 
 
 
Health Care Providers &    28,000    Cardinal Health, Inc.        1,470,280 
Services - 0.6%                 
 
 
 
 
Household Durables - 0.2%    10,500    Sony Corp. (b)        420,735 
 
 
 
 
Household Products - 1.7%    65,400    Kimberly-Clark Corp.        4,221,570 
 
 
 
 

1

BlackRock Enhanced Capital and Income Fund, Inc.     
Schedule of Investments as of March 31, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
Industry    Shares    Common Stocks        Value 
 
 
 
 
IT Services - 1.0%    530,000    Unisys Corp. (a)        $ 2,347,900 
 
 
 
 
Industrial Conglomerates - 3.0%    127,600    General Electric Co.        4,722,476 
    57,325    Tyco International Ltd.        2,525,166 
               
                7,247,642 
 
 
 
 
Insurance - 8.2%    145,800    American International Group, Inc.    6,305,850 
    47,200    Hartford Financial Services Group, Inc. (c)    3,576,344 
    32,400    MetLife, Inc.        1,952,424 
    26,300    Prudential Financial, Inc.        2,057,975 
    127,100    The Travelers Cos., Inc.        6,081,735 
               
                19,974,328 
 
 
 
 
Machinery - 1.4%    42,500    Deere & Co.        3,418,700 
 
 
 
 
Media - 4.2%    505,900    Time Warner, Inc.        7,092,718 
    99,800    Walt Disney Co.        3,131,724 
               
                10,224,442 
 
 
 
 
Metals & Mining - 1.5%    101,400    Alcoa, Inc.        3,656,484 
 
 
 
 
Multi-Utilities - 0.8%    46,400    Dominion Resources, Inc.        1,894,976 
 
 
 
 
Office Electronics - 2.4%    389,700    Xerox Corp.        5,833,809 
 
 
 
 
Oil, Gas & Consumable    41,000    Anadarko Petroleum Corp.    2,584,230 
Fuels - 7.9%    48,700    Chevron Corp.        4,157,032 
    128,300    Exxon Mobil Corp.        10,851,614 
    27,800    Peabody Energy Corp.        1,417,800 
               
                19,010,676 
 
 
 
 
Pharmaceuticals - 8.8%    386,100    Bristol-Myers Squibb Co.        8,223,930 
    46,500    GlaxoSmithKline Plc (b)        1,972,995 
    37,500    Johnson & Johnson        2,432,625 
    176,600    Pfizer, Inc.        3,696,238 
    167,800    Schering-Plough Corp.        2,417,998 
    64,000    Wyeth        2,672,640 
               
                21,416,426 
 
 
 
 
Semiconductors & Semiconductor    74,400    Analog Devices, Inc.        2,196,288 
Equipment - 7.0%    151,200    Fairchild Semiconductor International, Inc. (a)    1,802,304 
    206,800    Intel Corp.        4,380,024 
    969,600    LSI Corp. (a)        4,799,520 
    615,400    Micron Technology, Inc. (a)    3,673,938 
           
                16,852,074 
 
 
 
 
        Total Common Stocks         
        (Cost - $229,981,870) - 95.4%    231,235,236 
 
 
 
    Beneficial             
    Interest             
    (000)    Short-Term Securities         
 
 
 
 
$ 16,916    BlackRock Liquidity Series, LLC Cash Sweep Series,     
        2.92% (d)(e)        16,916,286 
 
 
 
 
        Total Short-Term Securities     
        (Cost - $16,916,286) - 7.0%    16,916,286 
 
 
 

2

BlackRock Enhanced Capital and Income Fund, Inc.     
Schedule of Investments as of March 31, 2008 (Unaudited)    (Percentages shown are based on Net Assets) 
 
    Contracts    Options Purchased        Value 
 
 
 
 
Call Options Purchased - 0.1%    115    S&P 500 Listed Option, expiring April 2008     
        at $135        $ 173,650 
    100    S&P 500 Listed Option, expiring April 2008     
        at $137        83,000 
 
 
 
 
        Total Options Purchased         
        (Premiums Paid - $294,103) - 0.1%    256,650 
 
 
 
        Total Investments Before Options Written     
        (Cost - $247,192,259*) - 102.5%    248,408,172 
 
 
 
Options Written
Call Options Written - (2.4%)    545    Micron Technology, Inc., expiring July 2008     
        at $9        (6,813) 
    1,377    S&P 500 Listed Option, expiring April 2008     
        at $130        (5,769,630) 
 
 
 
 
        Total Options Written         
        (Premiums Received - $6,023,043) - (2.4%)    (5,776,443) 
 
 
 
        Total Investments, Net of Options Written     
        (Cost - $241,169,216) - 100.1%    242,631,729 
        Liabilities in Excess of Other Assets - (0.1%)    (345,849) 
           
        Net Assets - 100.0%        $ 242,285,880 
               

*      The cost and unrealized appreciation (depreciation) of investments as of March 31, 2008, as computed for federal income tax purposes, were as follows:
 
Aggregate cost    $ 248,053,805 
   
Gross unrealized appreciation    $ 26,084,809 
Gross unrealized depreciation    (25,730,442) 
   
Net unrealized appreciation    $ 354,367 
   

(a)      Non-income producing security.
 
(b)      Depositary receipts.
 
(c)      All or portion of security held as collateral in connection with open financial futures contracts.
 
(d)      Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:
 
        Net     
        Activity    Interest 
    Affiliate    (000)    Income 
   
 
 
    BlackRock Liquidity Series, LLC Cash Sweep Series    $ 3,243    $ 212,635 
   
 
 
(e)    Represents the current yield as of report date.         

        Expiration    Face    Unrealized 
Contracts    Issue    Date    Value    Appreciation 
 
 
 
 
280    S&P 500 Index    June 2008    $ 18,468,516    $ 67,484 
 
 
 
 

3

BlackRock Enhanced Capital and Income Fund, Inc.

  		•  Effective January 1, 2008, the Enhanced Capital and Income Fund, Inc. (the “Fund”) adopted FASB Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS
     
      157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:
     
     
  		• Level 1 – price quotations in active markets/exchanges for identical securities
     
     
  		• Level 2 –other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market–corroborated inputs)
     
     
  		• Level 3 – unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)
     
      The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its annual report.
     
      The following table summarizes the inputs used as of March 31, 2008 in determining the fair valuation of the Fund’s investments:
     
    Valuation    Investments in    Other Financial 
    Inputs    Securities    Instruments* 
    		 
    		 
    Level 1    $231,235,236    $(5,452,309) 
    Level 2    16,916,286                                   0 
    Level 3    0                                   0 
    		 
    		 
    Total    $248,151,522    $(5,452,309) 
    		 
    		 

    *Other financial instruments are derivative instruments, such as financial future contracts and options.

    4

    Item 2 – Controls and Procedures

    2(a) – The registrant’s principal executive and principal financial officers or persons performing
    similar functions have concluded that the registrant’s disclosure controls and procedures (as
    defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the
    “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the
    evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act
    and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

    2(b) – There were no changes in the registrant’s internal control over financial reporting (as
    defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal
    quarter that have materially affected, or are reasonably likely to materially affect, the
    registrant’s internal control over financial reporting.

    Item 3 – Exhibits

    Certifications – Attached hereto

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
    Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by
    the undersigned, thereunto duly authorized.

    BlackRock Enhanced Capital and Income Fund, Inc.

    By: /s/ Donald C. Burke
    Donald C. Burke
    Chief Executive Officer of
    BlackRock Enhanced Capital and Income Fund, Inc.

    Date: May 22, 2008

    Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
    Company Act of 1940, this report has been signed below by the following persons on behalf
    of the registrant and in the capacities and on the dates indicated.

    By: /s/ Donald C. Burke
    Donald C. Burke
    Chief Executive Officer (principal executive officer) of
    BlackRock Enhanced Capital and Income Fund, Inc.

    Date: May 22, 2008

    By: /s/ Neal J. Andrews
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock Enhanced Capital and Income Fund, Inc.

    Date: May 22, 2008