Actually, a .inc file is normally just a .inc file, i.e. it can be read as a textfile.
Hence, a user viewing such a file would be able to view the source code.
Where database passwords and such are placed into a .inc file, and this .inc file being within the DOCUMENT_ROOT (i.e. still viewable to the Web), it becomes an immediate security risk.
One way to solve this is to name such files "file.inc", and then use a .php extension, as mentioned by Erkilite.
So the filename would appear as "file.inc.php"
Since it is now a .php file, it will be parsed as PHP.
Another way would be to change httpd.conf to include .inc files as files to be parsed by PHP.
If the file does contain sensitive information, and you can access to space outside the DOCUMENT_ROOT, then placing it in such non-web space would be advisable.