This bill amends the Internal Revenue Code of 1986 to expand the types of damages excluded from gross income. Specifically, it adds damages received on account of sexual acts or sexual contact to the list of non-taxable income, alongside personal physical injuries or physical sickness. This exclusion applies to all damages except for punitive damages. The legislation establishes clear rules for substantiating these damages, stating that they will be treated as such if the judgment or agreement explicitly indicates they are for a sexual act or sexual contact. Crucially, it prohibits requiring medical records as the sole substantiation, ensuring that the absence of such records does not invalidate the exclusion. These amendments will apply to amounts received from judgments made and agreements entered into after the date of the Act's enactment, with specific rules for how existing agreements are treated. Additionally, the bill mandates that the Secretary of the Treasury, in consultation with relevant federal agencies, conduct a program to promote public awareness of this new income exclusion.