With these sales, we have effectively transitioned back to a module-only company. We do have certain remaining risks, liabilities, indemnities, warranty obligations, accounts payable, accounts receivable, earn-outs, cash collection, dispute resolution and other legacy involvements related to our former systems business. Given the declining impact of our other segment, we will no longer provide segment-specific guidance, but shall in the future note any significant impact from the other segment to our consolidated financials. As it relates to capacity expansion, our factory expansion and upgrades remain on schedule and are expected to impact operating income by approximately $195 million to $220 million in 2023. This is comprised of start-up expenses of $85 million to $90 million primarily incurred in connection with our new factories in Ohio and India; an estimated ramping on the utilization costs of $110 million to $130 million.
We anticipate these expansions and upgrades will contribute meaningfully to our production plans in 2024 and beyond. Operationally, in 2023, we’re expecting to produce 11.5 to 12.2 gigawatts of modules, and after taking into account reductions in inventory, fell 11.8 to 12.3 gigawatts. From a capital structure perspective, our strong balance sheet has been and remains a strategic differentiator, enabling us both to weather periods of volatility as well as providing flexibility to pursue growth opportunities including self-funding our Series 6 and Series 7 transitions. We ended 2022 in a strong liquidity position. And coupled with strong forecasted operating cash flows, modular advance payments and our existing India credit facility, we expect to be able to finance our current capital programs without acquiring external financing.
We are evaluating putting in place our revolving credit facility to support jurisdictional cash management as well as to provide short-term optionality and expect to address more details on our capital structure and liquidity outlook at our Analyst Day. And finally, a few words on the Inflation Reduction Act. The IRA offers, amongst other incentives, production tax credits for solar modules and solar module components manufactured in the U.S. and sold to third parties. Although we continue to await guidance from the IRS and Treasury regarding these credits under Section 45X of the statute, based on our view of both the intention of the credit and the language of the legislation, we intend to begin recording a corresponding benefit in our financial statements in Q1 of 2023.
Following consultation review with outside advisers, our auditors and the SEC, we expect to recognize these credits as a reduction to cost of sales in the period such modules and the integrated eligible components are sold to customers. In addition, these credits will also be shown as government grants receivable on our balance sheet. We encourage you to review the safe harbor statements contained in today’s press release and presentation for the risks related to our receiving the full amount of tax benefits that we believe we are entitled to under the IRA. I’ll now cover the full year 2023 guidance ranges on Slide 10. Our net sales guidance is between $3.4 billion and $3.6 billion; gross margin is expected to be between $1.2 billion and $1.3 billion, which includes $660 million to $710 million of advanced manufacturing production tax credits under Section 45X of the IRA; and $110 million to $130 million of ramp and underutilization costs.
SG&A expense is expected to total $175 million to $185 million compared to $165 million in 2022 and $170 million in 2021. R&D expense is expected to total $155 million to $165 million compared to $113 million and $99 million in 2021 and 2022, respectively. The 2023 expense is increasing primarily due to our expectation of adding headcount to our R&D team to further invest in advanced research initiatives. SG&A and R&D expense combined is expected to total $330 million to $350 million. And total operating expenses, which includes $85 million to $90 million of production start-up expense, are expected to be between $415 million and $440 million. Operating income is expected to be between $745 million and $870 million, as inclusive of $195 million to $220 million of combined ramp and underutilization costs and plant startup expenses, and $660 million to $710 million of Section 45X credits.
