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.
Tax on Gasoline
The federal highway use tax is 18.3 cents per gallon of fuel. Charged at the pump, the average taxpayer never sees the exact amount of tax paid each time they gas up their vehicle.