In a bid to boost the uptake of eco-friendly transportation in the UK, chancellor Alistair Darling has announced a new incentive to encourage people to buy electric cars.
Revealed in the pre-Budget report, the tax break will be offered to firms which decide to replace their fleets of vehicles with more environmentally-friendly models.
All electric cars bought under the scheme will be exempt from company car tax, which will save businesses money for the next five years.
The move has been welcomed by some industry experts, including the team at TheGreenCarWebsite.co.uk.
"These kinds of tax incentives are very important to nurture green innovation within the industry and develop a market for the cleanest forms of transport," said the website's editor Faye Sunderland.
She acknowledged that while electric cars are not perfect, they will be able to develop and improve over time.
Such vehicles still have source CO2 emissions, Ms Sunderland revealed, which should provide an incentive for more investment to be made into renewable fuels and small-scale electricity production.
"For now, one of the best benefits they offer is that they reduce localised emissions and inner-urban pollution. Let's not forget that that alone is a massive threat to human health," she stated.
Some groups believe this will not be the only incentive to get businesses and individuals thinking about their carbon footprints.
The British Vehicle Rental and leasing Association's chief executive John Lewis said the move marked a modernisation of the business tax regime, while giving a "clear, long-term incentive for companies willing to be early adopters of electric cars and vans".
He suggested that the planned government incentive to offer between £2,500 and £5,000 to people who buy cars with low carbon emissions will also help steer drivers in the direction of more environmentally-sound vehicles.
These regulations are due to come into force in 2011, meaning the next steps towards a low carbon future are not far away.
Nonetheless, one of the main queries when it comes to electric cars is whether the transport infrastructure will be effective enough to be able to support them.
Director of the RAC Foundation Professor Stephen Glaister believes the chancellor's announcement may speed up the implementation process.
"The incentive for companies to go electrify their car fleets is to be welcomed as this will help provide a mass market for low-carbon vehicles and encourage a charging infrastructure to be established," he predicted.
It is not only businesses which can benefit from an increase in electric car availability, as Matt Thompson, group marketing director of Trader Media Group believes they are also finding favour with city commuters.
He noted that they benefit from "reduced or free tax and exemption from congestion charges", which, when coupled with an eco insurance policy, can prove a cost-effective way of motoring.
The more manufacturers which produce these vehicles, the more likely there is to be an infrastructure to support them, he said.
With an ever-growing list of incentives to take up electric vehicles, it seems there is no excuse for failing to adopt more eco-friendly motoring.
As the demand for electric cars increases, so will the amount of facilities to make driving them easier, suggesting this is the time for drivers to really make a difference to both their pockets and the environment.
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