The Senate Finance Committee’s response to the House of Representatives’ budget reconciliation bill, formerly named the One Big Beautiful Bill Act, offers a glimmer of hope to older and working adults.

“Republicans are working to deliver additional tax relief for American families, communities and small businesses,” Senate Finance Chair Mike Crapo (R-ID) said in a press release on Thursday.

Among the provisions, the bill, if passed as written, would provide an additional exemption of $6,000 to millions of low- and middle-income seniors, “slashing their tax burden,” Crapo said.

The committee also proposes eliminating tax on overtime pay for millions, but not all, of the hourly workers in the United States. The bill calls for a deduction of up to $12,500 ($25,000 in the case of a joint return) for qualified overtime compensation. 

The proposal also would offer additional tax credits to businesses that directly provide child care or contract with outside child care providers. Under current law, the employer-provided child care credit provides businesses a nonrefundable tax credit of up to $150,000 per year on up to 25% of qualified child care expenses provided to employees. The proposed law would increase those amounts to $500,000 and 40%.

Families, too, would see increased tax credits for dependent care for older adults, children and other dependents. The proposal would raise the credit from 35% to 50%.

“While Democrats have been squeamish of the GOP’s broader tax efforts, they’ve been willing to work across the aisle on issues like expanding child care,” Politico reported. “Expect to see Democrats push for expanded credits to support low-income families, while Republicans dig in on supporting independent contractors.”

According to Politico, gig workers are among those who stand to benefit from the reconciliation bill, which increases the income-reporting threshold for independent contractors from $600 to $2,000. Most of those workers work part time, the news outlet noted.