The fuel tax credit is a federal refundable tax credit for taxes paid on fuel purchased for off road use. Every gallon of fuel sold at the pump has an 18.3 cent tax assessed by the federal government designated to highway construction and maintenance. When that gallon of fuel is purchased for non-transportation purposes, the purchaser is allowed to receive a refund for the tax paid.
A multitude of various credits provided to individuals and businesses based on allowances set by Congress. Generally social or economic driven, these credits are enticements to the taxpayer to perform or act in certain ways.