To amend the Internal Revenue Code of 1986 to increase the contribution limits to dependent care flexible spending accounts and to provide for a carryover of unused dependent care benefits.

Amends the Internal Revenue Code to: (1) allow a maximum annual benefit of $3,750 ($7,500 for married couples filing a joint tax return) for a dependent care flexible spending arrangement; and (2) allow a carryover of unused dependent care benefits in tax-exempt cafeteria plans and flexible spending arrangements into the next plan year.