diff --git a/icu4c/source/tools/tzcode/localtime.c b/icu4c/source/tools/tzcode/localtime.c
index 06a93c93eea..1fdfbdbb312 100644
--- a/icu4c/source/tools/tzcode/localtime.c
+++ b/icu4c/source/tools/tzcode/localtime.c
@@ -5,7 +5,7 @@
 
 #ifndef lint
 #ifndef NOID
-static char	elsieid[] = "@(#)localtime.c	8.3";
+static char	elsieid[] = "@(#)localtime.c	8.5";
 #endif /* !defined NOID */
 #endif /* !defined lint */
 
@@ -556,9 +556,9 @@ register const int		doextend;
 	}
 	i = 2 * YEARSPERREPEAT;
 	sp->goback = sp->goahead = sp->timecnt > i;
-	sp->goback &= sp->types[i] == sp->types[0] &&
+	sp->goback = sp->goback && sp->types[i] == sp->types[0] &&
 		differ_by_repeat(sp->ats[i], sp->ats[0]);
-	sp->goahead &=
+	sp->goahead = sp->goahead &&
 		sp->types[sp->timecnt - 1] == sp->types[sp->timecnt - 1 - i] &&
 		differ_by_repeat(sp->ats[sp->timecnt - 1],
 			 sp->ats[sp->timecnt - 1 - i]);
@@ -916,7 +916,6 @@ const int			lastditch;
 	load_result = tzload(TZDEFRULES, sp, FALSE);
 	if (load_result != 0)
 		sp->leapcnt = 0;		/* so, we're off a little */
-	sp->timecnt = 0;
 	if (*name != '\0') {
 		if (*name == '<') {
 			dstname = ++name;
@@ -967,6 +966,7 @@ const int			lastditch;
 			atp = sp->ats;
 			typep = sp->types;
 			janfirst = 0;
+			sp->timecnt = 0;
 			for (year = EPOCH_YEAR;
 			    sp->timecnt + 2 <= TZ_MAX_TIMES;
 			    ++year) {
diff --git a/icu4c/source/tools/tzcode/readme.txt b/icu4c/source/tools/tzcode/readme.txt
index c6b09e09e57..656a64887bf 100644
--- a/icu4c/source/tools/tzcode/readme.txt
+++ b/icu4c/source/tools/tzcode/readme.txt
@@ -8,6 +8,8 @@
 **********************************************************************
 
 Note:  this directory currently contains tzcode as of tzcode2006h.tar.gz
+   with localtime.c  patches from tzcode2006i.tar.gz
+
 
 ----------------------------------------------------------------------
 OVERVIEW