Elisabeth,
I don't know the details of the legislation for the federal credit
that apply to tankless water heaters installed in 2009, but you should
find out if you have to subtract the state credit from the federal
credit, or if you can combine them.
I installed a tankless water heater in January 2007. Because the tank
water heater I replaced was located near the common wall of our
semidetached house, and the tankless water heater is located on the
alley wall, I reduced the hot water line run by some 20'. This means I
get hot water sooner than I did before, and that I have to flush out
less cold water in the pipes to get it. I also expect that the
tankless water heater will last a lot longer than a tank water heater,
and that it may be possible to repair it rather than replace it, if it
breaks down. Finally, I have the comfort of knowing that there is no
tank to rupture and flood the basement.
Elliot
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