Working in conjunction with Global Electric Motorcars, LLC, a DaimlerChrysler Company, ZAP – a marketing and distribution firm – has announced that it will be renting neighbourhood electric vehicles throughout California.

ZAP will be soliciting rental agencies and other locations for the programme.

Neighbourhood electric cars are a new category of 25 MPH automobiles designed for short trips in urban areas, planned communities, commercial zones or tourist districts. The smaller, low-speed electric cars are a new alternative in places concerned with air and noise pollution, high fuel prices, traffic congestion or parking shortages.

ZAP says that participants in the rental program can get special incentives, including a 10% federal tax credit, accelerated depreciation, share in the rental income as well as being secured by ownership in the electric car.

ZAP will operate the rental management company, handling all insurance and processing.

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Rental companies that participate can receive vehicles at no cost as well as share in the rental income.

The first location opened this week on Balboa Island in Newport Beach, California. ZAP expects to add more tourist locations in the coming weeks.