It's when the government controls all industry, but is also race based, a sort of racist socialism.
----- (Edit): From Dictionary.com - noun 1. a governmental system led by a dictator having complete power, forcibly suppressing opposition and criticism, regimenting all industry, commerce, etc., and emphasizing an aggressive nationalism and often racism. 2. the philosophy, principles, or methods of fascism. 3. a political movement that employs the principles and methods of fascism, especially the one established by Mussolini in Italy 1922-43.
In a fascist government, the state controls all aspects of manufacturing, commerce, finance, and agriculture. Through central planning it sets product lines, production levels, prices, wages, working conditions, and the size of firms. No economic activity can be undertaken without government permission. Levels of consumption are dictated by the state, and excess incomes has to be surrendered as taxes or loans. It differs from communism in that communism is a socio economic system that stands for a classless, stateless and an egalitarian society. Fascism is an ideology that tries to bring together radical and authoritarian nationalism.