Hi.
I feel the need to weigh in for a couple of reasons, though I don't have a specific answer for you...
1) find out who your gas and water companies are. Most companies are giving substantial rebates for purchasing water heaters (and other appliances & windows) that meet certain criteria. They list it on their websites, and have the forms required there for you to download.
2) From an energy efficiency (and environmental) perspective, the best option is a tankless (on-demand) water heater. Our contractor suggested we stick with our "tank-full" water heater and get a circulation pump instead to deliver hot water faster. Bad idea. We ended up having a shutoff switch installed on the pump, which saves us approx. $100 a month. We turn on the pump only when it is time for laundry.
3) I know it's hard to find the time to do the research, but it will save you money in the long run and potentially get you some rebates!!
Good luck!