A cake pop and a spool of spool cake are among the millions of pounds of confections that were sold at a Texas cake pop factory.
The company said it was given a $1.2 billion tax break by the state.
The cake pop company is based in Austin.
The tax break was announced in January, but the details have not been disclosed publicly.
The state has given the cake pop maker, Bakery Supply Corp., a tax deduction worth about $200 million, which it said will be used for manufacturing, packaging and distribution.
The state also says the company is entitled to a 20 percent tax break on sales.
The federal tax credit for cake pops is about $30,000.
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The tax break is one of the largest state tax breaks, accounting for about a quarter of the tax bill that the state has received for the year, according to state officials.
The largest single tax break in the state, though, is for a tax credit that was approved in 2013 for a bakery that makes cake pops and other confection products.
The amount of the credit is about half of the value of the cake pops.
The company’s owners have said they are disappointed in the timing of the announcement.
“We are disappointed with the announcement of this tax break, but we are hopeful that it will be implemented quickly,” the company said in a statement.
The cake pop industry has been struggling for years.
In 2015, the nation’s cake-pop industry lost nearly 6 million jobs.
The industry has seen a rise in the number of companies closing or folding.
The U.S. cake pop trade group says the industry has lost about 1 million jobs since the end of last year.
The announcement came as the state of Texas filed a lawsuit in federal court to block the company from receiving the tax break.
The Texas Tribune has reached out to the company for comment.
Bakery Supply, which operates out of a factory in the Austin suburb of Austin, is based on a plot of land on the outskirts of Austin.
It is owned by the Bakery Group, a company that has offices in New York City and a large manufacturing plant in New Jersey.
The Bakery group filed a petition to challenge the state’s decision in the U.D. Circuit Court of Appeals, arguing that the tax credit is not an itemized deduction that can be used to offset the cost of the business.
The group also argues that the amount of a tax incentive is limited.