Is there a lawyer who can help me with the language of this contract?

I’m not a lawyer.

To me it reads that your water heater is included, ”All components and parts, including circulating pumps”.

Since the types of water heaters included specifically lists ”Oil”, IMO the “Fuel, holding or storage tanks” would refer to an oil tank or reservoir of some sort, as both electric and gas are provided your home, where oil is not.

Here is an excerpt from a lease that appears to exclude both water and fuel tanks:
EXCLUDED: Access – Insulation blankets – Pressure reducing valve – Sediment build-up – Rust and corrosion - Main, Holding or storage tanks - Vents and flues – Thermal expansion tanks – Low boy and/or Squat water heaters – Solar water heaters – Solar components – Fuel, holding or storage tanks – Noise – Energy management systems – Commercial grade equipment and units exceeding 75 gallon

You might be able to print that out and use it as ammunition. Clearly, your agreement excludes only fuel holding tanks, as defined in my example.

I agree. They said that the water hold tank is implied. I explained that contracts are suppose to be clear. Not implied. It’s like saying I will sell you a water heater but you have to pay extra for what comes inside. I think I spoke to someone who doesn’t understand. I told them at first that we wanted a tankless but after much inquiry I decided against it. So he calls today with our portion of the costs. He said the 250 was for the expanded water storage. I think they meant to add a water storage component to my tankless water heater. When I explained that I won’t need it because we decided to stay with the same kind of tank we currently have, than he said fine and said I would still have to pay for the expanded water storage. Well, in a tankless, there is no water storage. So I’m thinking they were going to add one to my tankless and so it would be an extra separate component to a tankless. But not to a regular water heater, since it is a physical part inside the water heater and isn’t sold separately.

I think the simplest thing to do is just keep calmly repeating “I don’t want expanded water storage,” until someone is able to more clearly explain to you what the charge is for.

And I just checked? The brand I looked at was cheaper for a 50 gallon heater than 40 gallon, so that’s not it.

It sounds like another lawyer enhancing the slimy reputation characteristic of the profession. It’s like a warranty for a bathtub that excludes a device holding water. I’m not a lawyer either, but I can’t imagine this sort of slippery wiggling surviving even meager scrutiny in a small claims court.

So you think the guy isn’t being deliberately obtuse?

I called back and spoke to someone who actually understands water tanks. She explained it is a separate unit to take on extra water when the pressure builds. It’s only required in some area. It is not required I get that. It is not a part of the water tank. The lady explained it is not something I have to get. I will get a whole water heater. I was just talking to a dummy earlier.
It is not something I currently have. I have a relief valve that goes to a drain but not this extra tank.This is just a added precaution.
I don’t know how many times I asked this guy if it was a physical part of the water tank.

Well, that’s good to hear, @Pandora.

And I retract my earlier advice that you change to electric. Much like a cooktop, it appears that gas is much faster acting than electric. I just got a new 40 gallon electric and I have to increase the amount of hot water repeatedly just for a long shower.