The law is they can go into a booster seat at 40 lbs, but you really should keep the child in a 5 pt harness as long as possible for safety. I recently bought this seat for my husbands car for my 3 1/2 year old. It is great cause they can stay in a 5 pt harness up to 65 lbs and then it also converts into a backed booster seat (which is safer than a backless)
http://www.toysrus.com/product/index.jsp?productId=245231...
Only catch with this is that you have to have the higher seats in the back seat...the entire carseat needs to be supported by the seat of the car.
That way you could move your older child to this seat, and the younger baby could use his seat. And it wouldn't be a wasted investment as you will get a lot of use out of it.
For really good carseat info http://www.car-safety.org/