Pockets of Pennsylvania could achieve the Nirvana of a totally state tax free environment - at least for 15 years - if a proposal by State Rep. Bryan Lentz (D-Delaware) becomes a reality.

Under the plan Mr. Lentz unveiled Tuesday, businesses and their employees in designated "green job" zones would be free of virtually all Pennsylvania taxation - that's no state sales taxes, no personal income taxes, no corporate income taxes, no Capital Stock and Franchise taxes, no local earned income taxes, no local sales and use taxes, no business privilege taxes and no property taxes - if they locate their businesses in areas designated by the state and "served by a community college with a science technology and engineering math program."

Mr. Lentz couldn't put a precise figure on the lost tax revenues, but compared it to a similar plan in New York State with a $650 million annual price tag.

Rep. Bryan Lentz

He does know where the money would come from to pay for it, a severance tax on natural gas, primarily the booming Marcellus shale deposit drilling that is sprouting up across the Commonwealth.

A severance tax is an idea the General Assembly is considering to stem the state's continuing budget problems, though it balked at the proposition last year.

"We should capitalize on the growing demand for green technology and turn it into an opportunity to create jobs and help unemployed workers across the Commonwealth," Mr. Lentz said. "I am proposing that we give companies a financial incentive to business in Pennsylvania, which produce good-paying jobs and brand the state a hot spot for this growing industry. All the while, we'll be reducing the impact on the environment and surrounding communities, and improving the quality of life for residents across Pennsylvania."

This is, of course, predicated on the apparent fact the gas exploration companies have to stay here, because the gas is here.

Mr. Lentz said local communities will be fully reimbursed for any lost revenues from the sites and that whatever is left over from the severance tax will be directed to the state Department of Environmental Protection for its job of policing the drilling companies.

Mr. Lentz also referred to a Feb. 4 news release from the state Department of Labor and Industry Secretary Sandy Vito that  said "...the investment of $10 billion in public and private funds, over the next three years, is expected to generate 115,000 green-industry jobs in the commonwealth." That's about $86,000 in tax dollars and private funds per job created.

On Feb. 22, Gov. Ed Rendell said that, thus far, "We've invested nearly $1 billion (tax dollars) in (Green) projects that put more than 8,300 people to work." That's about $120,000 per job.

Ms. Vito's release did not say where or how the additional $9 billion over the next three years would be obtained.

"My guess is Mr. Lentz' district has a community college nearby that has the science and math programs and no deposits of Marcellus shale," said Nathan Benefield, director of policy research at the Commonwealth Foundation.

"This is simply a wealth redistribution scheme to take from those industries that are creating value in order to subsidize poorer technologies. This sounds like something out of ‘Atlas Shrugged'," said Elizabeth Bryan, a research associate with the same organization.

Jim Panyard is a reporter for the Pennsylvania Independent.  He can be reached at Jim@PAIndependent.com