There's actually no law against "muzzle breaks," but if attached over a threaded barrel they don't care, they'll treat them as illegal.
The NJ law actually consists of a list of weapons, including the M1 Garand, Colt AR-15, Colt CAR-15, AK and about 150 other "assault weapons." Technically, they don't ban flash-hiders and other evil features, but a provision in the law states that "any weapon designed to be substantially similar to any firearm listed shall be considered an assault weapon." NJ DAs have been instructed to utilize the ambiguity of that statement in the legislature to continue to enforce the Federal AWB, past it's sunset, on a state level.
The memo to NJ DAs, which is public record, is a verbatim copy of the Federal AWB, with instructions to continue to enforce the ban tacked on the end, with no actual legal backing, siting the fact that any weapon having an "evil" feature is "substantially identical" to any weapon on that list.
So, to be NJ-legal you can not have a bayonet lug (not to worried about that one as I was going to put a PRI front-end on it anyway), no threads on the barrel, no flash-hider and no collapsable-stock. With further provisions banning any magazine with a capacity over 15 rounds.
My idea, based on what I have to work with, is to build what is essentialy an SPR clone in 6.8 SPC with an OPS Inc. SPR muzzle-brake on an 18" non-threaded barrel (probably have to weld it on) and PRI 15-round 6.8 mags.