M-1 Rail finalizes tax credit funding for Detroit streetcar line

The final piece of the 2014 funding puzzle for Detroit's streetcar project has been completed, with agreements finalized for the second phase of $40 million in New Markets Tax Credit (NMTC) financing, M-1 Rail officials announced earlier this week.

M-1 Rail received the first tranche earlier this year, and the second tranche brings net proceeds to $8 million. The arrangement marks the first time that NMTCs have been used to fund a public transportation initiative, M-1 Rail officials said in a press release.

"This project is the standard for what NMTCs are meant to support, providing a catalyst for growth, inclusion and access for community residents who need good jobs and dependable public transportation," said Jenilyn Norman, chief financial officer for M-1 Rail, the nonprofit organization leading the design, construction and future operation of the 3.3-mile streetcar system under construction along Woodward Avenue in Detroit.

The NMTC program was established as part of the federal Community Renewal Tax Relief Act of 2000, which was passed to stimulate investment and economic growth in low-income urban neighborhoods that lack access to capital for business support, job creation and sustaining healthy local economies.