Obama Pulls Job-Credit Plan From Stimulus Bill

President-elect Barack Obama has dropped the business tax credit from his stimulus bill.

Democratic sources told FOX News that the $3,000-per-job credit -- a key component of Obama's economic proposal during the presidential campaign -- will not be part of the stimulus plan.

The decision to drop the credit comes as the $775 billion economic stimulus bill takes form on Capitol Hill. Obama is meeting with lawmakers Tuesday to discuss $300 billion in proposed tax relief. He had touted the job-credit plan as one of his chief provisions.

But the tax credit -- conceived to subsidize jobs for businesses that keep or create jobs -- was met with skepticism by both Democrats and Republicans, many of whom said it was unfeasible. Among the strongest opponents were Democrats who said the credit could be easily abused.

The IRS has told previous Congresses that the idea could not be drafted into law because it would be impossible to know which jobs were saved and which were created. It would therefore be difficult to determine which companies should receive the $3,000-per-job credit, according to the IRS.

Obama aides have said that the president-elect would drop provisions that were unworkable, and Obama has said he takes no pride of ownership in making sure all his suggestions are included.  They said the president-elect is committed to an unprecedented degree of cooperation with Congress, and understands the concerns expressed over the credit.

Aides also say Obama continues to support the "Making Work Pay" tax credit -- another key proposal touted during his campaign -- that promises a tax cut for 95 percent of workers.

Democrats have won promises for more energy tax breaks and other tax cuts, as well.

The president-elect's transition team has also prepared to dispatch top aides to meet with Senate Republicans this week in anticipation of a possible vote Thursday on whether to release additional money from the Troubled Asset Relief Program.

FOX News' Major Garrett and the Associated Press contributed to this report.