To amend the Internal Revenue Code of 1986 to extend the exclusion for compensation for injuries or sickness to encompass posttraumatic stress disorder, and for other purposes.

In general— Paragraph (2) of section 104(a) of the Internal Revenue Code of 1986 is amended by striking “sickness” and inserting “sickness or posttraumatic stress disorder”.

Conforming amendment— The last sentence of section 104(a) of the Internal Revenue Code of 1986 is amended by striking “shall not apply” and inserting “shall not apply to posttraumatic stress disorder or”.

Effective date— The amendments made by this section shall apply to compensation received after the date of the enactment of this Act.